The Government of India, acting through the Ministry of Defence, will offload up to 1.14 crore equity shares of Mazagon Dock Shipbuilders Ltd via an Offer for Sale (OFS), representing 2.83% of the total paid-up equity capital of the company. An additional oversubscription option of up to 80.67 lakh shares (2%) has also been announced, bringing the potential total offer size to 1.94 crore shares, or 4.83% of the company’s equity.
According to the notice issued by the Department of Defence Production on April 3, 2025, the OFS will open on April 4 for non-retail investors and on April 7 for retail investors and eligible employees. The floor price has been set at ₹2,525 per share. There will be no retail discount offered under this OFS.
The sale will help the government meet its minimum public shareholding norms as prescribed under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, and Regulation 38 of SEBI’s listing obligations. The OFS will be executed through a separate window provided by the stock exchanges—BSE and NSE—between 9:15 AM and 3:30 PM on both trading days.
IDBI Capital Markets & Securities Ltd will act as the seller’s broker for the transaction.
Retail and non-retail participation
On April 4, only non-retail investors will be allowed to place bids. They may also choose to carry forward un-allotted bids to the T+1 day (April 7), when retail investors and eligible employees can participate. If any portion of the non-retail quota remains unsubscribed, it will be available for allocation to the retail category.
Retail investors are allowed to bid at or above the cut-off price and can submit orders for shares worth up to ₹2 lakh across both exchanges. They may also bid at the cut-off price directly. In the event of oversubscription, shares will be allocated on a proportionate basis. No indicative price has been declared for the retail and employee categories.
Additionally, 50,000 equity shares have been reserved for eligible employees, equivalent to 0.26% of the total offer. Employees may apply for shares worth up to ₹2 lakh on T+1 day, and in the event of under-subscription, can apply for additional shares worth up to ₹5 lakh on a proportionate basis.
Key terms and eligibility
The offer will be undertaken under the SEBI-prescribed OFS framework and is not a public offer under the Companies Act, 2013. No offer documents or prospectus will be filed or registered. The offer is not open to the United States or other jurisdictions where such an offer may be unlawful.
Participation is restricted to those meeting eligibility criteria, and bidders must adhere to detailed declarations including confirmation that the shares are being acquired for investment purposes and not for resale or distribution. The offer will be open only to Qualified Institutional Buyers (QIBs) in the United States under Rule 144A.
Retail investors must deposit 100% of the bid value upfront, while institutional bidders have the flexibility to bid without upfront payment, subject to custodian confirmation.
Settlement of bids for non-retail investors will occur on T+1 day, while retail and employee bids will be settled on T+2 day. Any unaccepted or canceled bids will be refunded in real time.
The Government of India currently holds the majority stake in Mazagon Dock Shipbuilders and has undertaken this OFS as part of its disinvestment strategy.
Disclaimer: This article is based on the official OFS notice issued by the Government of India dated April 3, 2025. Investors are advised to read the full offer documents and consult financial advisors before making investment decisions.
