Retail investors show huge appetite for Mazagon Dock; IPO oversubscribed by 2.09 times on Day 1

At the upper price band, the government of India plans to raise about Rs443.68cr from the IPO.

Sep 30, 2020 08:09 IST India Infoline News Service

Mazagon Dock Shipbuilders during the first day of its initial public offering (IPO) received a massive response from retail investors following by high net-worth individual (HNI). The IPO got oversubscribed by 2.09 times on Day 1.

Data compiled by NSE and BSE showed that the IPO received cumulative bids of 6,39,74,227 equity shares against the IPO size of 3,05,99,017 equity shares, representing 2.09 times subscription.

Retail individual investors (RII) oversubscribed the IPO by 5.64 times, followed by non-institutional investors (NII) which subscribed the issue by 0.78 times. However, the qualified institutional buyer (QIB) subscribed the IPO by merely 0.03 times, as per data from NSE and BSE.

The issue price is fixed at a lower band of Rs135 per equity share and upper price band of Rs145 per equity share.

At the upper price band, the government of India plans to raise about Rs443.68cr from the IPO.

Further, 50% of the issue size is reserved for qualified institutional buyers (QIB), while 15% is kept for non-institutional investors (NII) and remaining 35% held for retail individual investors (RII). These allocations are carried after excluding the employees' reservation.

Mazagon Dock Shipbuilders is one of the leading shipbuilding yards in India, with its history dated back to 1774. The government acquired Mazagon Dock was acquired by the government of India in 1960.

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