Mazagon Dock Shipbuilders launched its Initial Public Offer (IPO) on the Indian stock exchanges opening at 216.25 rupees, 49% higher than its opening price of 145 rupees on Monday.
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Mazagaon Dock Shipbuilders Limited is a major manufacturer of Indian Navy warships and submarines. Under Modi government’s push to ‘Make in India’ campaign and ‘Atmanirbhar Bharat’ (self-reliant India), the company’s IPO saw the highest demand so far this year and was oversubscribed 157.4 times between September 29 and October 1.
In the backdrop of India China conflict on the border and China’s growing expansionism in the Indian Ocean and the South China Sea, the state-owned company got an extra push.
Investor confidence reflects the heightened wish to counter China and maintain a strong maritime force in case the situation escalates any further.
“Mazagon Dock is the most important state-run enterprise for the defence of India as it is the only submarine builder for the navy,” N.C. Bipindra, a New Delhi-based defence and strategic affairs analyst told NAR.
Bipindra also said that the Mazagaon shipyard builts at least 50% of the Indian Navy warships and submarines, while three other government-owned warship builders take care of the rest of the requirements of the Indian Navy.
“Mazagon Dock arms the Indian Navy with the most modern warships and submarines, which enables India to defend and protect its maritime interests not only in the Indian Ocean region but also beyond, in the South China Sea.”
“The Atmanirbhar plan will positively impact private and public shipyards. Also, manufacturing of ships has been placed under the negative list,” Vice Admiral Narayan Prasad, chairman and managing director at the shipyard under the Ministry of Defence, had told BloombergQuint in an interview.
“Future order books worth Rs 90,000 crore for submarines and destroyers are in the offing for the shipping defence industry.