Mazagon Dock Faces Setback as Government Announces Stake Sale

Shares of Mazagon Dock Shipbuilders dropped over 7% following the government's decision to sell up to a 4.83% stake in the firm. The planned sale aims to generate approximately Rs 5,000 crore, with the offering priced at a minimum of Rs 2,525 per share.

The shares of Mazagon Dock Shipbuilders nosedived by more than 7% on Friday after the government announced its decision to divest up to a 4.83% stake in the state-owned entity. The stock closed at Rs 2,537.90 on the NSE, representing a 7.29% drop, while on the BSE, it ended 7.10% lower at Rs 2,541.20.

This move comes as part of the government's strategic divestment plan to raise approximately Rs 5,000 crore. The stake sale offer, set at a floor price of Rs 2,525 per share, opens to institutional investors on Friday, with retail investors able to bid starting Monday.

In Thursday's announcement, DIPAM Secretary Arunish Chawla stated that the Offer for Sale includes a 2.83% equity divestment, alongside an additional 2% greenshoe option. Active trading saw 48.08 lakh equity shares exchanged on the NSE and 2.88 lakh on the BSE, reflecting significant investor engagement.