2 days Ago
Mazagon Dock Shipbuilders shares will remain in focus on Monday after the government announced it would exercise the oversubscription option to sell an additional 1.18% stake in the company through its ongoing offer for sale (OFS). This increases the total offer size to 4.
01%, according to an exchange filing on Friday.Under this option, the government will offload an additional 47.69 lakh shares.
This comes on top of the base issue of 1.14 crore shares, or a 2.83% stake.
The OFS opened on Friday for non-retail investors and will continue on Monday for retail investors, employees, and non-retail investors with unallotted bids. The floor price for the sale has been fixed at Rs 2,525 per share.On Thursday, the state-run company had disclosed that the government might sell up to 80.
67 lakh additional shares (2%) through the oversubscription route. Eventually, it opted to sell a 1.18% stake instead.
Accordingly, the total offer size will be up to 1,61,80,354 equity shares (representing 4.01% of the total paid-up equity share capital of the company), of which 16,18,036 shares, i.e.
, 10% of the offer, will be available for the retail category on T+1 day, i.e., April 7, 2025, the filing stated.
As of the December 2024 quarter, the Union government held an 84.83% stake in the company, according to BSE data.Mazagon Dock Shipbuilders: Stock target and performanceAccording to Trendlyne data, the average target price for the stock is Rs 2,446, indicating a downside of 4% from current levels.
The consensus recommendation from three analysts is a ‘Hold’.On Friday, Mazagon Dock Shipbuilders shares closed at Rs 2,541.2 on the BSE, down 7.
1%, while the benchmark Sensex declined 1.22%. The stock has surged 13% year-to-date and an impressive 673% over the past two years.
The company’s market capitalization currently stands at Rs 1,02,506 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times).
