Mazagon Dock gets SEBI's go-ahead to float IPO; govt to sell over 2.8 cr equity shares

New Delhi: State-owned Mazagon Dock Shipbuilders has received markets regulator SEBI’s go-ahead to float an initial public offering (IPO).

The public sector undertaking had filed draft papers with the Securities and Exchange Board of India (SEBI) in August seeking its clearance to launch an IPO and obtained its “observations” on 13 December, according to the latest update with the markets watchdog.

SEBI’s observations are necessary for any company to launch public issues like IPO, follow-on public offer (FPO) and rights issue.

Going by the draft papers, Mazagon Dock, a leading shipyard of India serving the nation’s strategic requirements, will see sale of over 2.8 crore equity shares by the government.

The issue is being managed by Yes Securities, IDFC Securities, Axis Capital, JM Financial and Edelweiss Financial Services.

The IPO is part of the government’s target to garner Rs 1.05 lakh crore through stake sale in state-owned companies in 2019-20.

Earlier in August 2018, Mazagon had got the markets regulator’s clearance to float an IPO, but did not go ahead with the plan.