Mazagon Dock Shipbuilders IPO: Strong order book, zero debt bode well

Mazagon Dock Shipbuilders (MDL) is hitting the primary market as the government offloads 15 per cent of its stake in this Mini-Ratna, wherein allocation to retail investors will not be less than 35 per cent of the offer size. Mazagon is India’s only shipyard engaged in building destroyers and conventional submarines for Indian Navy. This differentiates MDL from peers like Cochin Shipyard or Garden Reach Shipbuilders, which are also in the business of shipbuilding and supply vessels to the Indian Navy.

While a strong order book of Rs 54,074 crore as on July 31, 2020 provides almost 10 years of