NEW DELHI: State-owned defence major Mazagon Dock Shipbuilders pared some of its early gains but closed substantially higher that its IPO price on its first day of trading on the stock exchanges on Monday.
Shares of the company opened at Rs 216.25 apiece, a 49.13 per cent premium over its issue price of Rs 145, according to data available on the exchanges. However, it closed the day at Rs 173 apiece—19.3 per cent higher than the issue price. According to analysts, much of this was due to profit-booking after a blockbuster initial public offering. During the day, the scrip zoomed to as much as 49.41 per cent higher than the IPO price before paring gains.
On the NSE, the stock debuted at Rs 214.9 apiece, rising 48.2 per cent from the IPO price during the day. It closed at Rs 171.95, 18.58 per cent higher. The company’s market valuation stood at Rs 3,489.24 crore at the close of trade on the BSE.In terms of volume, 35.97 lakh shares were traded at the BSE and nearly 4 crore units on the NSE during the day.
The IPO of the state-owned defence firm—an offer-for-sale worth Rs 444 crore by the promoter Indian government—had received a stellar response from investors and was oversubscribed by 157.41 times. That’s more than 112 times the subscription seen for IRCTC’s IPO in October last year. The price range for the MSDL IPO was at Rs 135-145 per share.
Yes Securities, Axis Capital, Edelweiss Financial Services, DAM Capital Advisors and JM Financial were the managers for the offer. The company, which is engaged in the construction and repair of warships and submarines for use by the Indian Navy, and other vessels for commercial clients, expects to benefit from the Atma Nirbhar Bharat project as an increase in local manufacturing will aid its order book.