Mazagon Dock Shipbuilders shares price will be in focus as the government plans to divest up to 4.83% stake in the defence PSU through an Offer for Sale (OFS) from April 4 to April 7. The stock has been on a rally, gaining 22% year-to-date (YTD) and 149% over the past year. But with the OFS coming up, let’s take a look at some of the key factors you need to know
Mazagon Dock OFS: Understanding the OFS structure
The government aims to initially sell 2.83% of its stake, with an option to offload an additional 2% if demand is strong, taking the total sale up to 4.83%. Here’s how the OFS process will work:
April 4- Non-retail investors (institutional buyers) can place their bids and may carry forward unallotted bids to the next day.
April 7- Retail investors, employees, and non-retail investors opting to carry forward can place their bids.
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25% of the shares are reserved for mutual funds and insurance companies, provided they bid at or above the floor price.
Any unsold shares will be reallocated to other eligible bidders.
Mazagon Dock’s stock performance
Mazagon Dock’s shares have been on a stellar run. The stock closed the last trading session at Rs 2,738, posting a 5% gain. Over the past five sessions, the stock saw a marginal uptick of 0.4%.
In just the past one month, Mazagon Dock has delivered a 27% return.
Looking at a broader timeframe, the stock has surged 34% in the last six months and a staggering 149% over the past year. Year-to-date (YTD), the stock has climbed 22%.
With a market capitalisation of Rs 1.01 lakh crore, the company’s 52-week high stands at Rs 2,930, which is 6.55% away from the current price. Meanwhile, the 52-week low sits at Rs 995.60.
ALSO READStocks To Watch: From tech stocks to Vedanta, Mazagon Dock, HDFC Bank, 12 stocks in news today Mazagon Dock – The defence edge
Mazagon Dock is a major player in India’s defence sector, specialising in building warships and submarines for the Indian Navy. With India’s growing focus on strengthening its naval capabilities, the company benefits from long-term government contracts and increasing defence spending.
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