Mumbai: Shares of state-run defence company Mazagon Dock Shipbuilders Ltd. fell sharply by 9.2 per cent to Rs 2,310 on April 7, marking a second consecutive day of losses. This decline follows a 7 per cent drop on the previous Friday, coinciding with the launch of the Offer For Sale (OFS) for non-retail investors.
The government had planned to sell up to 4.83 per cent of its stake in the company through the OFS, utilizing the green shoe option after the non-retail portion was oversubscribed by 1.4 times. Retail investors were eligible to bid for shares on the same day as the decline.
Stock Slips Below OFS Floor Price
The stock’s recent correction has pushed its price below the OFS floor price of Rs 2,525 per share, causing concern among investors. Despite the drop, the government’s stake remains significant. As of December, it held an 84.8 per cent stake, which will remain above the minimum public shareholding norms even after the OFS.
Analyst Sentiment Mixed
Out of six analysts covering Mazagon Dock Shipbuilders, four have rated it as a buy, while one has a hold rating, and another a sell rating, reflecting mixed market sentiment.
