Friday Feb 06, 2026
Friday Feb 06, 2026
Friday, 6 February 2026 03:22 - - {{hitsCtrl.values.hits}}
India State-controlled Mazagon Dock Shipbuilders Ltd., (Mazagon) yesterday announced its Mandatory Offer (MO) to acquire all remaining issued and paid-up ordinary shares of Colombo Dockyard PLC (Dockyard) at Rs. 40 per share.
The Dockyard share price ended Rs. 0.25 on the up yesterday at Rs. 152.25, with over a million shares traded on a turnover of Rs. 152 million. The company reported net assets of Rs. 46.21 per share.
The offer comes as Senthilverl Holdings last week increased its shareholding in Dockyard to 12.2% following a series of share purchases executed on 30 January at prices ranging between Rs. 149.25 and Rs. 155.25 per share.
Tracing its origins as a small dry dock in 1774, Mazagon is a Navratna-status public sector undertaking of the Government of India, incorporated in 1934 and headquartered in Mumbai, engaged in the design, construction, repair, and refurbishment of naval vessels, submarines, offshore platforms, and commercial vessels.
The Government of India, which took over the company in 1960, is its largest shareholder, holding approximately 81.22% of equity.
A detailed Offer Document will be dispatched to the Board of Directors and shareholders of Dockyard within 35 days.
The obligation to make the MO arises following the recent Rights Issue of Dockyard, pursuant to which Mazagon was allotted 164,916,229 ordinary shares on 19 January, representing unsubscribed Rights shares of Onomichi Dockyard Company Ltd. (ODCL). The shares were acquired at Rs. 40 per share, amounting to a total consideration of Rs. 6.6 billion.
Following the allotment, Mazagon’s shareholding increased to 164,916,229 ordinary shares, representing 41.73% of the total number of shares in issue of Dockyard after the Rights Issue. Mazagon did not hold any shares in Dockyard prior to this transaction.
Under the MO, Mazagon intends to acquire the remaining 230,307,853 ordinary shares of Dockyard, representing 58.27% of the issued and paid-up ordinary shares. The offer price of Rs. 40 per share is the highest price at which Mazagon acquired shares in Dockyard.
The MO will be made to all shareholders of Dockyard registered in the books of the company at the close of the offer.
As disclosed, Mazagon and ODCL had previously entered into a Tripartite Sale and Purchase Agreement dated 27 June 2025, as amended by an addendum dated 28 November 2025, under which Mazagon agreed to purchase 36,648,051 shares held by ODCL, representing 9.27% of the issued shares of Dockyard, through the MO. Upon completion, Mazagon’s shareholding is expected to increase to 51.0% of Dockyard, subject to acceptances.
The MO is stated to be unconditional as to acceptances, as defined under Rule 37 of the Take-overs and Mergers Code, meaning that Mazagon is required to accept and pay for all shares tendered at the offer price, with shareholders relinquishing the right to withdraw shares once tendered.
