Mazagon Dock Shipbuilders stock plunges over 7% as govt to sell stake

New Delhi: Shares of Mazagon Dock Shipbuilders declined more than 7 per cent on Friday after the government announcement to sell up to 4.83 per cent stake in the state-owned firm.

The stock of the Mumbai-based firm plunged 7.29 per cent to close at Rs 2,537.90 apiece on the National Stock Exchange (NSE).

On the BSE, it declined 7.10 per cent to end at Rs 2,541.20 per piece.

In volume terms, 48.08 lakh equity shares of the firm traded on the NSE, and 2.88 lakh shares exchanged hands on the BSE during the day.

The 30-share BSE Sensex tumbled 930.67 points or 1.22 per cent to settle at 75,364.69 and the broader NSE Nifty declined 345.65 points or 1.49 per cent to close at 22,904.45.

On Thursday, the government said it will sell up to 4.83 per cent stake in Mazagon Dock Shipbuilders at a floor price of Rs 2,525 per share.

"Offer for Sale (OFS) in Mazagon Dock Shipbuilders Ltd (MDL) opens tomorrow for non-retail investors. Retail investors can bid on Monday. The government will divest 2.83 per cent equity with an additional 2 per cent as a green shoe option," DIPAM Secretary Arunish Chawla said in a post on X.

The OFS will open for institutional investors on Friday. Retail buyers can put in bids on April 7.

The government is selling 1.14 crore equity shares, with a greenshoe option to sell an additional 80.67 lakh shares.

The share sale of up to 4.83 per cent at a floor price of Rs 2,525 a piece would fetch about Rs 5,000 crore to the exchequer.