Mazagon OFS: Institutional buyers bid for Rs 3,700 crores

The government's 2.83 per cent stake sale in Mazagon Dock Shipbuilders was over-subscribed by institutional investors on Friday who put in bids of about Rs 3,700 crore The government is selling 1.14 crore equity shares or 2.83 per cent stake in Mazagon Dock Shipbuilders at a floor price of Rs 2,525 per share. The offer for sale (OFS) has a greenshoe option to retain over-subscription of an additional 80.67 lakh shares or 2 per cent. This takes the total issue size to 4.83 per cent.

The OFS which opened for institutional investors on Friday, was over-subscribed 1.42 times of the base issue size. At the floor price of Rs 2,525 a share, the bid of over 1.45 crore shares is valued at about Rs 3,700 crore.

Bidding will open for retail buyers on April 7.

Shares of Mazagon Dock closed at Rs 2,541.20 apiece, down 7.10 per cent over previous close on the BSE.