Mazagon Dock Shipbuilders Ltd

About the Company:

Mazagon Dock Shipbuilders Ltd is a defence public sector undertaking shipyard under the Department of Defence Production, MoD with a maximum shipbuilding and submarine  capacity of 40,000 DWT.

Company 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.

Mazagon Dock Shipbuilders Ltd is a wholly owned GoI company, conferred with the ‘Mini-ratna-I’ status in 2006, by the DPE.

Company is the India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy and are also one of the initial shipyards to manufacture
Corvettes (Veer and Khukri Class) in India.


Company’s Headquarters:

Mazagon Dock Shipbuilders Ltd is headquartered in Mumbai which is also the headquarters of the Western Naval Command of the Indian Navy.

Company is also exploring the possibilities of developing a greenfield shipyard at Nhava, Navi Mumbai with a shiplift, wet basin, workshops, stores and buildings and a ship repair facility spread over an area of 37 acres.


The business divisions in which we operate are:

Shipbuilding Business:

Company’s shipbuilding division includes the building and repair of naval ships. We are 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.


Submarine and Heavy Engineering Business:

Company’s submarine and heavy engineering division includes building, repair and refits of diesel electric submarines. We are currently building/ in the process of delivering four Scorpene class submarines.



Industry Overview: (Major Players)

Indian shipbuilding industry can be divided into following segments:

Public sector shipyards:

The Indian shipbuilding industry comprises eight public sector shipyards out of which four naval shipyards come under the purview of India’s Ministry of Defence, namely Hindustan Shipyard Ltd, Mazagon Dock Shipbuilders Ltd, Goa Shipyard Ltd and Garden Reach Shipbuilders & Engineers Ltd.

Private Shipyards:

The three listed private-sector shipbuilding companies are Larsen & Toubro Ltd, Bharati Defence & Infrastructure Ltd (BDIL), ABG Shipyard Ltd and Reliance Defence and Engineering Ltd (RDEL), formerly known as Pipavav Defence and Offshore Engineering Company Limited (PDOECL).



Management Team:

  1. Mr. Narayan Prasad (Designation: Chairman and Managing Director)
  2. Mr. Sanjeev Singhal (Designation: Director (Finance) and Chief Financial Officer)




Objectives of the Issue:

Offer for Sale:

  • Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholder.



Positives for the Company:

The Only public sector defence shipyard constructing conventional submarines.

  • Company is primarily engaged in the defence shipbuilding segment catering to the needs of the MoD and are India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy.


Location of facilities promotes closer association with vendors and customers.

  • Company’s shipyard is strategically located in Mumbai on the west coast of India, on the sea route connecting Europe, West Asia and the Pacific Rim, a busy international maritime route.
  • Company’s customers, being the MoD and Indian Coast Guard and our vendors are based in Mumbai which we believe results in closer co-ordination and greater efficiencies.



To Increase Focus on Ship Repairing Services.

  • In order to diversify the revenue streams, we intend to increase our ship repair activities in the future as such activites are for a shorter period of time and result in the early booking of revenues.
  • In the past company undertaken ship repairs for our clients in the defence and commercial sectors. This will help generate more revenues, increase our client base and reduce our dependency on the MoD for future orders.
  • Company is also in the process of reviving our ship repair operations. We are also exploring the possibilities of developing a greenfield shipyard at Nhava, Navi Mumbai.



Strong Order Book.

  • As of July 31, 2020, Company’s Order Book for shipbuilding and submarines and heavy engineering was Rs.54074 crores comprising of three major shipbuilding projects and two submarine projects.


Financials of the Company:

(in Crores) FY 17 FY 18 FY 19 FY 20
Revenue 4274.8 5027.6 5204.6 5535.3
Net Profit 598.2 496.1 532.4 477.0


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Mazagon Dock Shipbuilders Ltd 10 21.36 6.78 15.54% 152.17
Cochin Shipyard Ltd 10 48.05 7.60 16.98 283.02
Garden Reach Shipbuilders Ltd 10 14.27 14.91 7.01% 90.81


IPO Details:

Details Info
Issue Opens on 29th September 2020
Issue Closes on:. 1st October 2020
Issue Price Rs. 135 -145
Face Value Rs.10
Retail Category Allocation 35%
Minimum Lot 103 Shares
Minimum Investment Rs.14,935
Issue Constitutes 15.17%
Issue Size Rs.443 cr ($60 million)
Market Cap Rs. 2925 cr ($395 milion)
Listing at NSE & BSE
Equity Shares Offered (OFS) 3,05,99,017
Equity Shares Prior to the issue 20,16,90,000
Equity Shares after the Issue 20,16,90,000

Important Dates:

Finalization of Basis of Allotment on or Before 7th October 2020
Initiation of Refunds on or Before 8th October 2020
Credit of Equity Shares: on or Before 9th October 2020
Listing Date: on or Before 12th October 2020


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 5:00 PM) Shares Offered 29th Sept 30th Sept 1st Oct
QIB 1,51,26,750 0.04 2.83 89.71
NII 45,38,025 0.78 4.96 678.9
Retail 1,05,88,725 5.65 15.53 35.63
Employee 3,45,517 0.28 1.04 3.88
TOTAL 3,05,99,017 2.09 7.52 157.41


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
21.36 6.78 15.54% 152.17


Check IPO Allotment Status:

Alankit Website: http://Alankit/IPO/Allotment_Status

BSE IPO Website:


Company Contact Info:
Mazagon Dock Shipbuilders Limited
Dockyard Road, Mumbai – 400 010
Telephone: +91 22 2376 2000


IPO Registrar Info:
Address: 205-208, Anarkali Complex,
Jhandewalan Extension,
New Delhi – 110055
Telephone: +91 11- 4254 1954/971/933,