OFS impact: Mazagon Dock shares tank 6%; non-retail investor bids kick off

Shares of Mazagon Dock Shipbuilders Ltd tumbled 6 per cent in Friday's trade as the two day offer for sale by the government kicked off. The defence stock is in news as the promoter entity is looking to sell up to 1,14,10,366 shares of the company (base offer), representing 2.83 per cent of the total paid up equity share capital of the Company) from April 4 to April 7.

On Friday, only non-retail investors can bid in the issue. The floor price set at 2,525 was at 7.7 per cent discount to Thursday's closing price of Rs 2,735.45. Following this, the stock fell 6.19 per cent to hit a low of Rs 2.566 on BSE.

Retail investors, employees and non-retail investors, who decided to carry forward their un-allotted bids from Friday, may bid in the OFS on April 7. 

The government could sell an additional sell 80,67,600 shares, representing 2 per cent of the total issued and paid up equity share capital of the company, through a separate designated window of the Stock Exchanges, collectively representing 4.83 per cent of the total issued and paid up equity share capital of the company.

"In the event that the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will collectively, hereinafter be referred to as "offer shares" while in the event that such oversubscription option is not exercised, the Equity Shares forming part of the base offer size will be referred to as offer shares," Mazagon Dock sad.

The defence PSU may offer 50,000 shares of the company -- equivalent to 0.26 per cent of the offer shares, to eligible employees, in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority. 

The eligible employees may apply for Equity Shares amounting up to Rs. 500.000, Mazagon said.

The offer will take place over two trading days on a separate window of the Stock Exchanges on April 4, 2025 ("T" day) and April 7, 2025 ("T+1" day), commencing from 9:15 a.m. and shall close on the same date at 3:30 p.m. (Indian Standard Time) on both days, as per details given below.