Shares of Mazagon Dock Shipbuilders fell 6% on April 4 as government plans to sell up to 4.83 per cent stake in the PSU defence firm at a floor price of Rs 2,525 per share.
"Offer for Sale in Mazagon Dock Shipbuilders Limited (MDL) opens tomorrow for Non-Retail investors. Retail investors can bid on Monday. Government will divest 2.83% equity with an additional 2% as green shoe option," DIPAM Secretary Arunish Chawla said in a post on X.
At 9:30 am on April 4, Mazagon Dock shares on BSE were trading 6% lower at Rs 2,579 apiece. The 52-week high of the stock is Rs 2,930 and 52-week low is Rs 1,045. The market capitalisation of the stock is Rs 1.03 lakh crore.
The OFS will open for institutional investors on Friday. Retail buyers can put in bids on April 7.
The government is selling 1.14 crore equity shares, with a greenshoe option to sell additional 80.67 lakh shares.
The share sale of up to 4.83 per cent at a floor price of Rs 2,525 a piece would fetch about Rs 5,000 crore to the exchequer.
Other PSU defence firms faced selling pressure as well coupled with a bearish market sentiment on a day when benchmark indices cracked 1% apiece. At 10:05 am on April 4, BEML shares were trading 4% lower at Rs 3,024 apiece. The shares of Hindustan Aeronautics and Cochin Shipyard were trading 1.7% and 4.69% lower, respectively. Meanwhile, shares of Bharat Dynamics and Bharat Electronics were trading 3.45% and 2% lower, respectively.
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