Rs 32,260 crore order book: Debt-Free defence shipbuilding company approved acquisition of Colombo Dockyard PLC for Rs 452 crore

The stock is up by 66 per cent from its 52-week low of Rs 1,917.95 per share and has given multibagger returns of over 2,400 per cent in 3 years.

Mazagon Dock Shipbuilders Limited (MDL), a prominent Indian shipyard, announced that its Board of Directors approved the acquisition of a controlling and substantial stake in Colombo Dockyard PLC (CDPLC), a company listed on the Colombo Stock Exchange, Sri Lanka. This strategic investment, made on June 27, 2025, will not exceed USD 52.96 million, which is approximately Rs 452 crore based on the current exchange rate. The acquisition will involve a combination of primary subscription and secondary acquisitions of CDPLC securities from its existing shareholders, including Onomichi Dockyard Co. Ltd., the current majority shareholder. Definitive documents outlining the terms and conditions have already been executed by MDL, CDPLC, and Onomichi, with the acquisition subject to customary closing conditions and necessary statutory and regulatory approvals.

Upon the successful completion of this proposed acquisition, CDPLC will officially become a subsidiary of Mazagon Dock Shipbuilders Limited, as MDL is set to acquire a minimum of 51 per cent of CDPLC's equity shares, along with control. CDPLC, incorporated on June 14, 1974, is a public limited company registered under Sri Lankan laws, primarily engaged in the shipbuilding and ship repair industry. Its consolidated turnover for the year ended December 31, 2024, was LKR 25,447 million, with a net worth of LKR 5,311 million for the same period. For the preceding financial years, CDPLC's consolidated turnover was LKR 36,168 million in FY 2023 and LKR 27,292 million in FY 2022.

The acquisition is anticipated to be completed within 4 to 6 months. This strategic move aims to significantly strengthen MDL's position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research and development capabilities, and expanding its market reach. This aligns with MDL's long-term growth vision and is expected to contribute positively to the company's overall business objectives within the ship construction and repair sector.

About the Company

Mazagon Dock Shipbuilders Limited (MDL), a renowned Indian shipyard established in 1774, has a rich history of building a wide range of vessels, including warships, submarines, cargo/passenger ships, and offshore platforms. Having constructed over 800 vessels since 1960, MDL has consistently demonstrated its shipbuilding prowess. In recognition of its significant contributions to India's Defence industry, MDL was conferred the prestigious 'Navratna' status in June 2024, joining the ranks of India's top-performing public sector enterprises. This elevation is a testament to MDL's strong financial performance, consistent track record, and commitment to strengthening India's defence capabilities.

As of March 31, 2025, the company is debt-free. The company has a market cap of over Rs 1,20,000 crore and as of March 31, 2025, the company’s order book stands at Rs 32,260 crore. The stock is up by 66 per cent from its 52-week low of Rs 1,917.95 per share and has given multibagger returns of over 2,400 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.