Shares of Mazagon Dock Shipbuilders Ltd dropped 5.49% to ₹2,587.15 on Thursday after the Government of India announced an Offer for Sale (OFS) of up to 1.94 crore equity shares, representing 4.83% of the company’s total paid-up capital. The floor price for the OFS has been set at ₹2,525 per share.
The Ministry of Defence, through the Department of Defence Production, plans to offload 1.14 crore shares (2.83%) with an additional oversubscription option of 80.67 lakh shares (2%). The issue opens for non-retail investors on April 4 and for retail investors and eligible employees on April 7.
The OFS is being conducted to help meet SEBI’s minimum public shareholding norms and will be executed via stock exchange platforms. IDBI Capital Markets & Securities Ltd is acting as the broker for the sale. No retail discount has been offered.
Shares of the company saw pressure as investors reacted to the large supply overhang, pushing the stock nearly 6% lower from the previous close of ₹2,737.55. As of the latest update, the market capitalization stands at ₹1.04 trillion.
The government’s move is part of its broader disinvestment strategy.
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