Mazagon Dock Shares Slide 13%: Government Ups Stake Sale with Option for Oversubscription

Amid worries over market supply, Mazagon Dock shares fell 13% as the government used its oversubscription option in OFS, increasing the total stake sale to 4.01%.

At ₹2,315.80, Mazagon Dock Shipbuilders Limited (NSE: MAZDOCK) had a steep drop in its stock price, down ₹226.40 or 8.91% from its closing price of ₹2,542.20. The stock hit an intraday high of ₹2,373.65 and a low of ₹2,200 after opening much lower at ₹2,221.05.

Mazagon Dock OFS Timeline and Structure:

The OFS is still available today (April 7) for retail investors, qualifying workers, and non-retail investors with unallotted bids. It opened for non-retail investors on Friday, April 4.

The filing states that the retail category has been allocated 16.18 lakh shares, or 10% of the overall offer, which would be made accessible on a T+1 basis.

The government first suggested selling an additional 2% of shares (80.67 lakh) through oversubscription. It ultimately decided to sell for 1.18%, perhaps due to investor interest or market response.

The Union government-owned Mazagon Dock to 84.83% as of the December 2024 quarter. The present sale is by the government’s more considerable disinvestment and capital mobilization policy, which aims to reduce promoter stakes in PSUs to SEBI’s minimal public ownership standards.

Mazagon Dock Shipbuilders Ltd (MDL), a Navratna Defence PSU, recently celebrated the keel laying of its first Multi-Purpose Vessel (MPV) for Navi Merchants, a company located in Denmark.

The event, which took place on April 2, 2025, at MDL’s South Yard, comes after the project’s manufacturing began on September 24, 2024. This move demonstrates MDL’s continued expansion into the commercial shipbuilding industry and its primary defense production skills.

Strong interest from institutional and retail investors is reflected in the government’s intention to increase the amount of its stake sale in Mazagon Dock through oversubscription. Although the stock has seen a short-term decline, the action improves liquidity and complies with legal criteria.