Mazagon Dock to Acquire 51% Stake in Colombo Dockyard for ₹452 Crore

27 Jun 2025 , 04:05 PM

Mazagon Dock Shipbuilders, the Indian defence PSU, has decided to step into Sri Lanka’s maritime sector with a significant move they’re buying 51% in Colombo Dockyard. The company plans to invest close to ₹452 crore, which comes to about $53 million, for this controlling stake.

The shares will come through a mix of fresh issue and a chunk bought from Japan’s Onomichi Dockyard they’ve been the primary shareholder in Colombo Dockyard till now. With this deal, Colombo Dockyard will officially become a subsidiary of Mazagon Dock a first-of-its-kind international addition to its portfolio.

Colombo Dockyard have been active for years, doing both construction and repair work, and are well known on the Colombo Stock Exchange. Financially, they reported revenue of around LKR 25,447 million last year, and their net worth stood at LKR 5,311 million based on 2024 numbers.

Meanwhile, Mazagon Dock itself is still majorly government-owned. As of March this year, the Indian government held over 84% in the company, which is more than the SEBI-required minimum public shareholding of 75%.

Mazagon Dock Shares closed at ₹3,188 which is a 2.12% gain on June 27, 2025. Mazagon Dock shares have witnessed a 12% dip in the last month, gained 42% in the year-to-date, and gained 48% in the last year.

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