Indian Government Plans to Sell Stake in Mazagon Dock Shipbuilders

The Indian government has announced plans to sell a stake of up to 4.83% in Mazagon Dock Shipbuilders, as reported in an exchange filing on Thursday. Currently, the government holds 84.83% of the company and is looking to sell 11.4 million shares, equivalent to a 2.83% stake, with the option to sell an additional 2%.

The sale will be conducted at a floor price of 2,525 rupees per share, which represents a nearly 8% discount to Mazagon Dock’s closing price on Thursday. Despite the discount, the shipbuilding company’s shares have seen a significant increase of almost 23% since the beginning of the year.

This move by the Indian government is part of its efforts to divest its stake in state-owned companies and raise funds. The sale of shares in Mazagon Dock Shipbuilders is expected to attract investor interest and potentially increase liquidity in the company’s stock.

Overall, this decision reflects the government’s strategy to streamline its ownership in various companies and unlock value for both the government and private investors. The sale of shares in Mazagon Dock Shipbuilders is a significant development in the Indian maritime industry and is likely to have a notable impact on the company’s future growth and financial performance.

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