RHP Link: https://www.axiscapital.co.in/uploads/equity_documents/20200922153130_mazagon_dock_shipbuilders_limited__rhp.pdf

• 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 SHARES”) 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, GOVERNMENT 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.

Mumbai, September 24, 2020 (GPN): 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 accordance with regulation 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 and regulation 31 of the Securities and Exchange Board of India (Issue of Capital 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 Bidders 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 Shareholder 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 (formerly known as IDFC Securities Ltd) and JM Financial Ltd are the BRLMs to the Offer

Mazagon Dock Shipbuilders Ltd. – Business Details

Headquartered in Mumbai and strategically located on the west coast of India, Mazagon Dock was incorporated as a private limited company in 1934 and in the year 1960, the GoI took over our Company to expand its warship development programme designating it as a DPSU under the MoD. Currently operates in 2 business segments – shipbuilding and submarine & heavy engineering. Since 1960 the company has built a total of 795 vessels including 25 warships ranging from advanced destroyers to missile boats and 3 submarines as well as cargo ships, passenger ships, supply vessels, multi-purpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts (Source: CRISIL report). In the last 18 fiscals the yard has delivered 27 warships building projects and 5 submarines and heavy engineering projects that include refit and repairs of ships and submarines.

The company has an established track record with a strong financial position. It has posted profits continuously in the last 4 fiscals. In FY20 its revenue stood at Rs. 34,766.96 mn from the shipbuilding division and Rs 14,935.39 mn from the submarine and heavy engineering division. As of July 31, 2020 the companies Order Book stood at Rs. 540,740 million comprising of three major shipbuilding projects and two submarine projects. Going forward besides focusing on the ship repair services, the company management plans to revive its exports of defence and other commercial products to Latin America, Africa, South East Asia, Middle East and some European Regions for which it has already entered into agency agreements with sales agents.

Some of the recent warships delivered by Mazagon dock are INS Kolkata, INS Kochi and INS Chennai. The last vessel it delivered to the MOD for use by the Indian Navy was a Scorpene class submarine- INS Khanderi in 2019. The 1^st Scorpene class submarine INS Kalvari was delivered in 2017.

About Mazagon Dock Shipbuilders Limited: MDL is a defense public sector undertaking shipyard under the Department 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 conventional 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) shipbuilding 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 undertaking 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).