Mehta Equities IPO report on Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders Ltd (MDSL) is a wholly owned GOI company with Mini Ratna status. It was incorporated in 1934 as a private company which was later taken over by GOI under warship development programme and is now India’s leading defence PSU under Ministry of defence. MDSL is primarily engaged in constructing and repairing warships and submarines and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients. It is the only shipyard to build destroyers and conventional submarines to be used by the Indian Navy with a maximum shipbuilding and submarine capacity of 40,000 DW. As of now, it has built 795 vessels, including 25 warships, 4 missile boats, 3 submarines, 6 Leander class frigates, 3 Godavari class frigates, 3 Shivalik class frigates, 3 corvettes, and 6 destroyers.
Valuation and Outlook
Considering attractive valuations and the objective of the issue which is to carry out the disinvestment of equity shares by the selling shareholder constituting 15.17% (OFS) paid up equity share capital and Mazagon will not receive any proceeds from the Offer, Hence we recommend investors to go “Subscribe for listing gain“.
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