Mazagon Dock Shipbuilders shares list at 49% premium over the issue price

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Mazagon Dock Shipbuilders shares list at 49% premium over the issue price
BCCL
  • The company issued the IPO at a price band of ₹145, but it listed at ₹216.25, with an upside of 49%.
  • However, the share price of Mazagon Dock Shipbuilders lost nearly 13% in minutes after listing debut.
  • The issue was subscribed 157 times on the last day of bidding— securing the topmost position in the list of the successful IPOs in the current year
  • Check out the latest news and updates on Business Insider.
The ₹444 crore initial public offering of the state-owned defence firm Mazagon Dock Shipbuilders made a lot of money for its IPO investors— the shares listed at a premium of 49% over the issue price band. However, in minutes after listing debut the shares lost over 13% and were trading at ₹189.50 a piece at 10:05 am.

Mazagon Dock Shipbuilders total market cap rose to ₹3,777.65 crore at 10:05 am. A total traded quantity of 15.19 lakh shares changed hands on BSE amounting to a turnover of ₹29.34 crore.

The company will trade with the symbol of ‘MAZDOCK’ on the Indian stock exchanges.

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The bumper listing was already on the cards!

The Mumbai-based Mazagon Dock Shipbuilders is a wholly-owned Indian Government company, conferred with the ‘Miniratna-I’ status in 2006, by the Department of Public Enterprises. The company is engaged in the construction and repair of warships and submarines for the Indian Ministry of Defence for use by the Indian Navy and other vessels for commercial clients.

The Mazagon Dock Shipbuilders IPO was one of the investors’ favourite picks during the IPO bonanza last month. The issue was subscribed 157 times on the last day of bidding, which is much higher than its other IPO peers— UTI AMC and Likhitha Infrastructure Limited, which clocked a tepid response from investors. The IPO secured the topmost position in the list of the successful IPOs in the current year in terms of subscription.

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Given its healthy order book, stable business and a reasonable valuation, it was already expected to have a bumper listing.

SEE ALSO: Top stocks to watch — Vedanta, Wipro, RITES, Mazagon Dock, UTI AMC, Glenmark Pharma, and others

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