Mazagon Dock IPO subscription status continues to overwhelm its promoters on the second day of subscription as well. As per the BSE data, the Mazagon Dock Shipbuilders IPO worth Rs 444 crore got subscribed 7.5 times on the second day of its subscription while the retail investors' subscription status was at robust 15.5 times of the available shares of the company.

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As per the exchange data available, the Mazagon dock IPO subscribed 7.5 times, so far, as it received bids for 23 crore equity shares against an offer size of 3.05 crore shares. The retail investors have been in the leading position for Mazagon Dock Initial Public Offer bids as their reserved portion has been subscribed 15.5 times and that of non-institutional investors (NII) 4.96 times.

The Mazagon Dock IPO subscription status for the qualified institutional buyers (QIB) witnessed 2.82 times subscription and that of employees 1.04 times.

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On whether one should buy Mazagaon Dock IPO or avoid it, Amarjeet Maurya, AVP - Mid Caps at Angel Broking Ltd said, "We have subscribed rating on IPO mainly due to lower PE valuation to 6.1x FY20 earnings (at the upper end of the issue price band) compare to its peer like Garden Reach Shipbuilders and Cochin Shipyard (trading at 12.2x and 6.6x of its FY20 earnings, respectively). Further, MDSL has a healthy ROE of around 16 per cent coupled with highest dividend yield (7.4 per cent) and higher cash on balance sheet among its peers."

The government of India is going to sell 15 per cent (approx) stake in Mazagon Dock Shipbuilders through this public issue, which consists of an OFS (offer for sale) of 3,05,99,017 equity shares by the Narendra Modi government. It is a part of the government's divestment programme.