The Union government is proposing to sell up to 4.83% stake defence PSU Mazagon Dock Shipbuilders through an Offer for Sale (OFS). This will be available on the exchanges from April 4-7.
Under the sale, the government will initially sell around 2.83%, and if the issue is fully subscribed, the government is also reserving an option to sell additional 2%. This will take the total stake sale to 4.83%.
The OFS will open on April 4 for institutional investors and retail investors and employees can bid for the same on April 7. The floor price is set at Rs 2,525 per share, which is nearly 8% discount to the current market levels.
Up to 50,000 shares (0.26% of the offer) are reserved for eligible employees, who can apply for shares worth up to Rs 5 lakh. Retail investors, defined as those bidding for shares worth up to Rs 2 lakh, will get 10% of the offer reserved for them.
The sale will be managed by IDBI Capital Markets and conducted on the BSE and NSE. The government retains the right to cancel the offer if demand is insufficient or if settlement obligations are not met.
The proceeds will help the government comply with Sebi's public shareholding rules.
On April 4, non-retail participants or institutional investors will have the option to carry forward any unallotted bids to the next day. Meanwhile, on April 7, retail investors and employees, and those non-retail investors who chose to carry forward can place their bids.
A minimum of 25% of the offer shares is reserved for mutual funds and insurance companies, provided they bid at or above the floor price. Any unsubscribed portion from one category will be allocated to other eligible bidders.
Mazagon Dock, a key player in India’s defence sector, builds warships and submarines for the Indian Navy.
On Thursday, Mazagon Dock shares closed 5.1% higher at Rs 2,738 on NSE.
Under the sale, the government will initially sell around 2.83%, and if the issue is fully subscribed, the government is also reserving an option to sell additional 2%. This will take the total stake sale to 4.83%.
The OFS will open on April 4 for institutional investors and retail investors and employees can bid for the same on April 7. The floor price is set at Rs 2,525 per share, which is nearly 8% discount to the current market levels.
Up to 50,000 shares (0.26% of the offer) are reserved for eligible employees, who can apply for shares worth up to Rs 5 lakh. Retail investors, defined as those bidding for shares worth up to Rs 2 lakh, will get 10% of the offer reserved for them.
The sale will be managed by IDBI Capital Markets and conducted on the BSE and NSE. The government retains the right to cancel the offer if demand is insufficient or if settlement obligations are not met.
The proceeds will help the government comply with Sebi's public shareholding rules.
On April 4, non-retail participants or institutional investors will have the option to carry forward any unallotted bids to the next day. Meanwhile, on April 7, retail investors and employees, and those non-retail investors who chose to carry forward can place their bids.
A minimum of 25% of the offer shares is reserved for mutual funds and insurance companies, provided they bid at or above the floor price. Any unsubscribed portion from one category will be allocated to other eligible bidders.
Mazagon Dock, a key player in India’s defence sector, builds warships and submarines for the Indian Navy.
On Thursday, Mazagon Dock shares closed 5.1% higher at Rs 2,738 on NSE.
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