Mazagon Dock looks to raise 600 cr

State-owned Mazagon Dock Shipbuilders is likely to raise Rs 500-600 crore through an initial public offer (IPO) by the end of this month, a senior company official said. The public sector undertaking had in August last year received Sebi's go ahead to float the initial share sale.

Mazagon, a leading shipyard of the country, would see sale of over 2.24 crore equity shares, amounting to 10 per cent stake of the government. "We are targeting to raise Rs 500-600 crore through the IPO and we are expecting to hit the markets by end of this month," Commodore Rakesh Anand, Chairman and Managing Director of Mazagon Dock Shipbuilders, said.

The offer will also have a portion for employees, which will not exceed 5 per cent of the post offer paid up equity share capital of the company. The IPO is part of the government's efforts to garner Rs 80,000 crore through stake sales in state-owned companies in 2018-19.

The company on Wednesday launched roadshows for the initial share sale. Mazagon, which has an order book of Rs 52,000 crore, posted a turnover of Rs 4,500 crore in 2017-18, Anand said.

Yes Securities, Axis Capital, Edelweiss Financial Services, IDFC Bank and J M Financial will manage the issue. Earlier, the company was planning to come out with its IPO in September but could not launch the same as the market conditions were not opportune, he added.