Mazagon Dock Shipbuilders Share Price Surges as Government Sells 4.8% Stake via OFS

Mazagon Dock Shipbuilders’ share price is in the spotlight following the announcement that the government will sell up to 4.8% of its stake in the defense Public Sector Undertaking (PSU) through an Offer for Sale (OFS). The sale is poised to attract significant attention from investors.

Key Highlights:

• Share Performance: The stock has grown remarkably, surging 27% in the past month and gaining 22% year-to-date (YTD). Over the last six months, shares have increased by 34%.
• Multibagger Returns: Over the last year, Mazagon Dock Shipbuilders has delivered a stunning 145% return, and in three years, the stock has soared by an astounding 2,076%.

Offer for Sale Details:

The government will offload up to 4.83% stake at a floor price of ₹2,525 per share. This includes:

• Institutional Investors: The OFS is set to open for non-retail investors today, April 4, 2025.
• Retail Investors: Bidding for retail investors will begin on April 7, 2025.
• Total Shares Offered: The government is selling 1.14 crore equity shares, with an additional greenshoe option to sell up to 80.67 lakh shares. This initiative could raise approximately ₹5,000 crore for the government.

Market Context:

Mazagon Dock Shipbuilders’ robust performance stands in stark contrast to the benchmark Sensex, which has seen only a 4.4% increase in the past month and a decline of 2.8% YTD, along with a 7.5% drop over the last six months.

Conclusion:

With its significant gains and the government’s strategic divestment plans, Mazagon Dock Shipbuilders is positioned attractively for both institutional and retail investors. The forthcoming OFS offers an opportunity for investors to tap into the growth potential of this defense sector company.