By Dominick Rodrigues
Mumbai, Oct 12: Mazagon Dock Shipbuilders Limited (MDSL) was listed on the BSE and NSE here today as various dignitaries ‘struck the gong’ at the BSE convention hall and also highlighted the shipyard’s extraordinary capabilities and achievements.
MDSL, a wholly-owned Govt. of India Company and India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy, listed today on the BSE and NSE at a 49 % premium. The Mini Ratna I status-conferred Company listed its shares at Rs. 216.25 per share on BSE with a recorded a high of Rs 216.65 and a low of Rs. 173 per share, respectively. Subsequently on NSE, MDL’s shares listed itself at Rs 214.90 per share and recorded a high at Rs 216.95 per share and closed at Rs 171.95 per share.
The total quantity traded on NSE today was 3,96,83,730 shares with a total delivery percentage of 45.92%. The total quantity traded on BSE today was 35,96,526 with a total delivery percentage of 42.18 %. The Market Capitalization of the Company post today’s closing price stands at Rs. 3489.24 crores as per BSE data.
MDL had received bids of 4,80,48,17,645 shares against the offered 3,05,99,017 shares. The portion reserved for Retail Investors was subscribed 34.50 times , Qualified Institutional Buyer category was subscribed 89.71 times and the employee category was fully subscribed at 3.91 times. The Non-Institutional Investor category was subscribed 678.86 times which was the highest in its category in the last 2 years and has been the most subscribed PSU offering as on date.
Thanking the investors for their unstinted faith in MDSL and tremendous response during COVID times “when the chips are down” and there is difficulty in maintaining morale, Vice-Admiral Narayan Prasad, CMD, MDSL, said “Our NIB category was highly subscribed with 678.86 times subscriptions followed by QIB &Retail at 89.71times and 34.50 respectively.”
“MDSL has built 631 vessels — including 10 warships and 11 submarines – besides exporting 231 vessels, amidst modernization and upgradation that has brought about a Rs 54,000 crores orderbook. We have the MRLC repair programme in our hands and six new destroyers for the Indian navy, besides also providing marine handling equipment for Portugal, among the numerous other services for different nations,” he noted.
Speaking on behalf of DIPAM, Jt.Secy, MOF, Dr Alok Pande said “This journey of coming to listing day today tested our patience as well as commitment. This firm is not one where you can work from home but requires physical presence. In May, COVID-19 tested our limits where the CMD and many team members were down with this virus, but fought on to complete this issue process. That they still were able to prepare for the IPO and do it in time shows their fighting abilities.”
Earlier, describing the IPO listing as a “red letter day,” Sanjeev Singhal, CFO, MDSL thanked the investors for reposing their ‘humongous trust’ in MDSL’s move from a ‘closely-held’ to a ‘widely-held’ company in the equity markets, that are engines of financial growth which enable flow of funds from investors.
“MDSL is the shipbuilder to the nation,” Vivek Toshniwal, Executive Director, Axis Capital ltd., said while pointing out that MDSL is the ‘first’ government divestment for 2020 and the highest that subscribed 1,555 times in garnering Rs 167 crore. “The MDSL IPO was one of the three IPOs coming out on the same day, but drawing overwhelming response to bring in one lakh shareholders,” he said.
V L Kanth Rao, Additional Secretary, Defence Production, Ministry of Defence, said the listing highlighted the beginning of new faith in strong growth in MDSL, where its IPO is witnessing resounding success in increased public confidence in the Government’s policies.
Expressing happiness at business picking up ‘after a four-month-hiatus’ at the BSE, Ashish Kumar Chauhan, CEO, BSE, said the stock exchange had raised Rs 8.13 crore in funds from April 1 during the COVID-19 lockdown. “BSE played a key role in developing capital markets at 6 microseconds speed. August 2017 had witnessed the listing of Cochin Shipyard ltd and this year was MDSL’s listing, whose ‘goliath’ cranes can be viewed by vehicles driving by,” he said.
Dharmesh Anil Mehta, CEO, Damn Capital, highlighted the Rs 444 crore MDSL IPO as the most ‘resounding success’ for a “phenomenal company’ entering the capital stock markets.
MSDL 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, and 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.
MSDL 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.. 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, MSDL 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.
