Mazagon Dock released its IPO offering last Tuesday with a price limit of Rs.135-Rs.145 per share. The offering experienced a lukewarm response from the market on the initial days. But on the day of closing, the IPO ended up being oversubscribed by 157 times! The investors are drawing a parallel to the IRCTC IPO offering, where the stock doubled its price within a few weeks of listing. Continue reading to see why this stock might become another gem for stock investors.
Mazagon Dock’s decades of experience
Mazagon Dock Shipbuilders Ltd is one of India’s leading public sector companies. Focusing on the Defence sector under the Ministry of Defence, Mazagon Dock has decades of experience in building and maintenance of warships and submarines for the Indian Navy along with other categories of vessels, including Cargo Ships, Support Tankers, Barges, Dredgers class of boats as well for the commercial sector.
The Mazagon Dock has its business split across two operating groups. The “Ship Building” division undertakes the build and repair of naval ships, whereas the “Submarine and Heavy Engineering” division focuses on the build, repair, and refit work for submarines. Till the current year, the firm has built more than 790 vessels, including 25 warships, 3 submarines, 6 Frigate class ships, 6 Destroyers, etc.
Mazagon Dock also has a prime location advantage
The Mazagon Dock shipyard has the advantage of being strategically located on the west coast of India. Its location connects the sea route between Europe, the Pacific, and West Asia. With all these factors and a healthy order book with projects totaling more than INR 54,074 crores and massive capital infrastructure already in place, the firm is in a strong position. The Indian government push for Domestic manufacturing for Defense procurements will play a positive factor in the coming months. With this said, the investors are eagerly waiting for the stock listing to happen in the markets for bumper returns.
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