Mazagon Dock Shipbuilders Limited, a wholly owned GoI company conferred with the Mini Ratna
Mazagon Dock IPO Price Band set at Rs 135-145 per Share; Issue to Open on September 29, 2020
- Price Band of ₹ 135 – ₹ 145 per Equity Share, Face Value of Rs 10 each
- Issue Opening Date – September 29, 2020 and Issue Closing Date – Oct 1, 2020
- Minimum Bid Lot is 103 Equity Shares and in multiples of 103 Equity Shares thereafter
- The Offer and the Net Offer will constitute 15.17% and 15.00% respectively of the post-Offer paid-up equity share capital of our Company.
- The Floor Price is 13.5 times the Face Value of the Equity Shares and the Cap Price is 14.5 times the Face Value of the Equity Shares.
INITIAL PUBLIC OFFERING OF 30,599,017 EQUITY SHARES OF FACE VALUE OF ₹10 EACH (“EQUITY SHAR ES”) OF MAZAGON DOCK SHIPBUILDERS LIMITED (OUR “COMPANY” OR THE “ISSUER”) THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF DEFENCE, GOVER NMENT OF INDIA (THE “SELLING SHAREHOLDER”), FOR CASH AT A PRICE OF ₹[●] PER EQUITY SHARE (THE “OFFER PRICE”), AGGREGATING TO ₹[●] MILLION (THE “OFFER”). 345,517 EQUITY SHARES HAVE BEEN RESERVED FOR ELIGIBLE EMPLOYEES (AS DEFINED BELOW) (THE “EMPLOYEE RESERVATION PORTION”). THE OFFER LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET OFFER. THE OFFER WILL COMPRISE OF A NET OFFER OF 30,253,500 EQUITY SHARES AND THE EMPLOYEE RESERVATION PORTION OF 345,517 EQUITY SHARES. THE OFFER AND THE NET OFFER WILL CONSTITUTE 15.17% AND 15.00% RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
Chennai, September 24, 2020: Mazagon Dock Shipbuilders Limited, a wholly owned GoI company conferred with the Mini Ratna I status and India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy (Source: CRISIL Report); will be opening its initial public offering for subscription on September 29, 2020 and will close on October 1, 2020 with a price band of ₹ 135 – ₹ 145 per Equity Share.
The Offer is being made through book building process in accord ance with regulation 19(2)(b) of the Securities Contracts (Regu lation) Rules, 1957 and regulation 31 of the Securities and Excha nge Board of India (Issue of Ca pital and Disclosure Requirements) Regulations, 2018, as amended where allocation to QIBs is not more than 50% of the Net Offer, Non-Institutional Bidders is not less than 15% of the Net Offer and Retail Individual Bid ders is not less than 35% of the Net Offer.
The objects of the Offer are to carry out the disinvestment of 30,599,017 Equity Shares by the Selling Shar eholder constituting 15.17% of our Company’s pre-Offer paid up Equity Share capital. Issue Proceeds will go to the president of India, acting through the ministry of defense, Government of India (the Selling Shareholder)
YES Securities India Ltd, Axis Capital Ltd, Edelweiss Financial Service Ltd, DAM Capital Advisors Limited (former ly known as IDFC Securities Ltd) and JM Financial Ltd are the BRLMs to the Offer
About Mazagon Dock Shipbuilders Limited: MDL is a defense public sector undertaking shipyard under the De partment of Defence Production, MoD with a maximum shipbuilding and submarine capacity of 40,000 DWT (Source: CRISIL Report), engaged in the construction and repair of warships and submarines for the MoD for use by the Indian Navy and other vessels for commercial clients. It is a wholly owned GoI company, conferred with the ‘Mini-ratna-I’ status in 2006, by the DPE. MDL is India’s only shipyard to have built destroyers and conve ntional submarines for the Indian Navy and also one of the initial shipyards to manufacture Corvettes (Veer and Khukri Class) in India (Source: CRISIL Report). The business divisions in which the Company operates are (i) ship building and (ii) submarine and heavy engineering. Its shipbuilding division includes the building and repair of naval ships. The Company is currently building four P-15 B destroyers and four P-17A stealth frigates and und ertaking repair and refit of a ship for the MoD for use by the Indian Navy. Its submarine and heavy engineering division includes building, repair and refits of diesel electric submarines. The Company is currently building/ in the process of delivering four Scorpene class submarines under a transfer of technology agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy. Since 1960, MDL has built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats and three submarines. (Source: CRISIL Report). The Company has also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts for various customers in India as well as abroad. (Source: CRISIL Report).
Disclaimer
MAZAGON DOCK SHIPBUILDERS LIMITED is proposing, subject to receipt of requisite approvals, market con ditions and other con siderations, to make an initial public offer of its equity shares and has filed a red herring prospectus (“RHP”) with the Registrar of Companies, Maharashtra at Mumbai. The RHP is available on the we bsite of Securities and Exchange Board of India at www.sebi.gov.in, on the websites of the Stock Exchanges at www.bseindia.com and www.nseindia.com as well as on the websites of the book running lead managers, YES Securities (India) Limited at www.yesinvest.in, Axis Capital Limited at www.axiscapital.co.in, Edelweiss Financial Services Limited at www.edelweissfin.com, DAM Capital Advisors Limited (Formerly known as IDFC Securities Limited) at www.damcapital.in and JM Financial Limited at www.jmfl.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see “Risk Fac tors” of the RHP. Potential investors should not rely on the draft red herring prospectus for any investment de cision. Due to various national security concerns, certain material information in relation to our business, ope rations and prospects has been classified as ‘confidential’ by the MoD and by us. As a result we have not (i) dis closed such information in the Red Herring Prospectus; or, (ii) provided such information to the BRLMs, the legal counsels and / or other intermediaries involved in this Offer. We therefore cannot assure you that the Red Her ring Prospectus contains all material information as necessary for investors to make an informed investment decision and hence the Red Herring Prospectus may not be complete to that extent. For further information please see “Risk Factors – As a result of national securities concerns, certain information in relation to our bu siness and operations is classified as ‘secret and confidential’ for which we have received the SEBI Exemption Letter I pursuant to which we have not disclosed such information in the Red Herring Prospectus nor provided such information to the BRLMs, other intermediaries and advisors involved in the Offer. Consequently, the Red Herring Prospectus may not contain complete information about us, our products, business, operations, cust omers, etc.” on page 20 of the RHP. This announcement has been prepared for publication in India and may not be released in the United States. This announcement is not an offer to sell, nor a solicitation of any offer to buy, securities of our Company in the United States. The Equity Shares referenced herein have not been, and will not be, r egistered with the U.S. Securities and Exchange Commission under the U.S. Securities Act of 1933, as ame nded (the “U.S. Securities Act”), or any U.S. state securities administrator under any applicable U.S. state secur ities laws, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. The Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of each jurisdictions where such offers and sales are made.
