Mazagon Dock Shipbuilders IPO to launch on September 29

State-owned defence company Mazagon Dock Shipbuilders will launch its initial public offering on September 29, people familiar with the matter told Moneycontrol. The issue will close on October 1, 2020.

The government company is likely to raise around Rs 400-550 crore via its maiden public offer, which reduced from earlier issue size of around Rs 700-800 crore, sources said.

Mazagon Dock Shipbuilders is a defence public sector undertaking shipyard under the Department of Defence Production (MoD) with a maximum shipbuilding and submarine capacity of 40,000 DWT, as per a CRISIL report.

The company is engaged in the construction and repair of warships and submarines for the MoD and other vessels for commercial clients. The company was conferred with the 'Mini-ratna-I' status in 2006.

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It is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy. It is also one of the first shipyards to manufacture Corvettes (Veer and Khukri Class) in India.

Mazagon Dock IPO was supposed to launch in September 2019 but the plan was shelved due to low demand.

In FY2020, the company's profit stood at Rs 415 crore on revenue of Rs 5,566 crore. As oon June 2019, Mazagon Dock has an order book of Rs 54,282 crore.

This would be eleventh initial public offering this calendar year and the first government firm to launch IPO in 2020.

SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds Technologies and Route Mobile have already listed on the bourses, while Compute Age Management Services and Chemcon Speciality Chemicals' public issues will close on September 23. Angel Broking's issue will close on September 24, while Likhitha Infrastructure and UTI AMC will open their IPOs on September 29.

Yes Securities (India), Axis Capital, Edelweiss Financial Services, IDFC Securities and JM Financial are the book running lead managers to the issue.