Mazagon Dock is 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. The business divisions in which the company operates are (i) shipbuilding and (ii) submarine and heavy engineering. Since 1960, MDSL has built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats and three submarines.

Promoter Selling Shareholder- The President of India, acting through the Ministry of Defence, GoI.

Mazagon Dock Shipbuilders Limited IPO

Wants To Apply Online


Issue Details

Objects of the issue
  • To carry out the disinvestment of 30,599,017 Equity Shares by the SellingShareholder constituting 15.17% of  Company’s pre-Offer paid up Equity Share capital; and
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Issue Size Issue Size: Rs.443.7 Crore

Offer for Sale – 30,599,017 Shares

Employee Reservation – 345,517 Shares

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 135 – Rs. 145
Bid Lot 103 shares
Listing at  


Issue Opens: 29th September 2020 – 1st  October 2020
QIB 50% of Net Issue Offer
NIB 15% of Net Issue Offer
Retail 35% of Net Issue Offer

Financial Performance:



Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoter & Promoter


100% 84.84%
Public & Others 15.17%

Source: DRHP, EWAL Research


  • Only public sector defence shipyard constructing conventional submarines

  • Established track record with strong financial position and strong Order Book

  • Increase in indigenisation of vessels and implementation of the “Make in India” campaign.

Key Highlights:

  • Order Book of Rs. 540,74 crore comprises of building and construction of four ‘P-15B’ destroyers, four ‘P-17A’ stealth frigates, repair and refit of a ship, four Scorpene class submarines and undertaking the medium refit and life certification of a submarine for the Indian Navy.

  • The company had generated a negative operating cash flow in two out of four reported fiscals. FY20 negative operating cash flow stood at Rs.95.56 Cr.

  • Intend to increase ship repair activities in the future as such activities are for a shorter period of time and result in the early booking of revenues.

  • The company has opted for reduced rate of income tax by electing the non-reversible option U/s 115BAA of Income Tax Act, 1961.This has resulted in one time effect on PAT by Rs.160.7 Crore in FY20.

Risk Factors:

  • Predominantly depend on the MoD for defence orders.

  • Any decline, delay or reprioritization of funding under the Indian Defence budget or that of customers including the MoD for use by the Indian Navy could affect the Company.

  • Entire business operations are based out of a single yard at Mumbai. The loss of, destruction, or shutdown of operations at shipyard in Mumbai will have a material adverse effect on business.

  • Company had negative net cash flows from operating activities in the past and may continue in the future also.


Mazagon Dock is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy. It has a capacity to build warships, submarines, merchant ships upto 40,000 DWT (Dead Weight Tons). Revenue from Shipbuilding contributed 70% to the revenues in FY20.Revenue from operations is grown at a CAGR of 5.5% during FY18-FY20.  It had an order book of Rs. 54074 crore which is to be executed in next 6-7 years. Current order book is around 10.9x of its TTM revenue, thereby providing revenue visibility for the mid to long term. At the higher end of the price band of Rs. 145, the stock is be available at a PE multiple of 6.79x on FY20 EPS. Listed Peers Cochin Shipyard trades at 6.59x FY20 EPS while Garden Reach Shipbuilders & Engineers trades at 12.1x FY20 EPS. Hence Mazagon Dock is available at fair valuation however considering the Risk factors; we would recommend listing gain to this IPO.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s  updates & other related information Subscribe our research plan