Mazagon Dock OFS: Stock Falls 6% – All You Need to Know to Apply For the OFS

Shares of Mazagon Dock Shipbuilders Ltd., the state-owned defence enterprise, declined by over 6% on Friday, April 4, 2025, after the Government of India revealed its plan to offload a 4.83% stake through the Offer For Sale (OFS) mechanism.

As per the December 2024 shareholding data, the government holds an 84.8% stake in the company.

Floor Price and Key Dates for the OFS

The floor price for the OFS has been set at ₹2,525 per share—nearly 8% lower than April 3, 2025 closing price. The OFS opened for non-retail investors on Friday, April 4, while retail investors will be able to participate on Monday, April 7.

What Is an OFS and How Does It Work?

An OFS is a transparent mechanism used by promoters, particularly the government, to reduce their holdings in listed companies. It allows for efficient price discovery, as investors can bid at the floor price or any price above it.

Post-bidding, a cut-off price is determined based on the collective demand across various price points.

Can You Place More Than One Bid?

Yes, multiple bids are allowed. However, your demat account must have sufficient funds to support the total value of your bids.

Is It Possible to Modify the Bid?

Yes. You can adjust the bid price during the bidding period. The final allotment is announced after the trading session concludes.

Will You Receive All the Shares You Bid For?

Not always. In case the OFS is oversubscribed, you may receive partial allocation, and any excess amount is credited back to your account.

Can You Bid Below the Floor Price?

No. Bids below the floor price are invalid and will not be considered for allotment.

Step-by-Step Guide: How to Apply for the Mazagon Dock OFS

Here’s a simple guide for retail investors planning to apply for the Mazagon Dock OFS:

1. Log in to your online trading account.
2. Go to the corporate actions or OFS section.
3. Select ‘OFS’, choose the appropriate category (retail or non-retail).
4. Enter your bid price or select the market order option to bid at the floor price.
5. Note: While stock market trading ends at 3:30 PM, OFS bids can only be placed until 3:00 PM.

Share Price Reaction

At 12:57 PM on Friday, shares of Mazagon Dock Shipbuilders were trading at ₹2,551.90, down by 6.78%. The decline is attributed to the announcement of the government’s stake sale.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.