MonePlan Investory: IPO Note of “Mazagon Dock Shipbuilders Limited”

Issue Details of Mazagon Dock Shipbuilders Limited

	*Mazagon Dock Shipbuilders Limited*
Issue Period	Bid/Offer Opens On: Tuesday, September 29, 2020 Bid/Offer Closes On: Thursday, October 01, 2020
Issue Details	Offer for Sale of 30,599,017 Equity Shares
Issue Size (₹ Cr)	₹ 413 - 444 Cr
Price Band	₹ 135 - 145
Bid Lot	103 Shares & in Multiple thereof
Employee Reservation	345,517 Equity Shares
Issue Structure :
QIB	50% of the Net offer ( 15,126,750 Equity Shares ) (₹ 204~ - ₹ 219^ Cr)
NIB	15% of the Net Offer ( 4,538,025 Equity Shares ) (₹ 61~- ₹ 66^ Cr)
Retail	35% of the net offer ( 10,588,725 Equity Shares ) (₹ 143~ - ₹ 154^ Cr)
	~ Lower price band & ^ Upper Price Band
BRLMs	Axis Capital, Yes Securities, Edelweiss Financial, IDFC Securities, JM Financial
Registrar	Alankit Assignments Limited
*Note : Application made using third party UPI or ASBA Bank A/c are liable to be rejected.*

Mazagon Dock Shipbuilders Ltd. Issue Highlights :

Incorporated on February 26, 1934, Mazagon Dock Shipbuilders Limited (“MDL”), conferred with the 'Mini-Ratna-I' status, is a Defence Public Sector Undertaking shipyard under the Department of Defence Production, Ministry of Defence (“MoD”), engaged in the construction & repair of warships & submarines for the MoD for use by the Indian Navy & other vessels for commercial clients. The shipyard builds warships & conventional submarines at its facilities in Mumbai and Nhava. Major customers for the shipyard include Indian Navy & Coast Guard.
Since 1960, MDL has built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats & three submarines. MDL had also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges & border outposts for various customers in India as well as abroad.
The company has also fabricated & delivered jackets, main decks of wellhead platform, process platforms, jack up rigs etc.
A few highlights in its shipbuilding are:

It is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy.
It is one of the initial shipyards to manufacture Corvettes (Veer & Khukri Class) in India.
t is also one of the ship builders for P17-A project for building next generation guided missile stealth frigates through collaboration with Fincantieri, Italy.
It is also executing orders for 5 Scorpene submarines through collaboration with DCNS, France.
It has a capacity to build warships, submarines, merchant ships upto 40,000 DWT.

As per Ministry of Shipping, no ship repair work has been undertaken by MDL in 2016. However it has undertaken ship repair activity in the past.
For outfitting work, the company has several workshops with sophisticated equipment and machines specific to hull fabrication and ship construction.
The shares will be listed on BSE and NSE.

Competitive Strength :

Only public sector defence shipyard constructing conventional submarines.
World class infrastructure capable of serving the requirements of the Ministry of Defence.
Location of the facilities promote closer association with the vendors and customers.
Increase in indigenisation of the vessels & implementation of the “Make in India” campaign.
Established track record with strong financial position & strong Order Book.
Experienced board & senior management team and skillfully trained workforce.

Key Business Strategies :

Brief Financial Details (₹ In Cr)

Source: RHP, *Restated Consolidated ^ Face Value ₹ 100/-per share, ~Reduction in share capital due to the share buyback.

For additional information & risk factors please refer to the Red Herring Prospectus

MonePlan Investory