India Government to sell five per cent stake in Mazagon Dock Shipbuilders

The Indian Government plans to sell a stake of up to 4.83 per cent in Mazagon Dock Shipbuilders (MDL), according to an exchange filing on Thursday.

The government, which currently owns 84.83 per cent of the company, is looking to sell 11.4 million shares representing a stake of 2.83 per cent with an option to sell an additional two per cent.

The sale will be made at a floor price of 2,525 rupees per share, the shipbuilding company said, a near eight per cent discount to Thursday's closing price.

Mazagon Dock's shares have risen nearly 23 per cent so far this year.

Since 1960, MDL has built a total of 805 vessels including 30 warships, from advanced destroyers to missile boats and eight submarines.

MDL has also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessel, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts for various customers in India as well as abroad.

(Reporting by Ashish Chandra in Bengaluru; Editing by Shounak Dasgupta)