Mazagon Dock Shipbuilders Ltd. (MDL) has approved the acquisition of a 51% equity stake in Colombo Dockyard PLC (CDPLC), a public limited company based in Sri Lanka. The deal is valued at $52.96 million, or approximately ₹452 crore, and will be completed through a mix of new share subscription and share purchase from existing shareholders.
The shares will be acquired from Japan’s Onomichi Dockyard Co., the current majority stakeholder in CDPLC. Definitive agreements have been signed by MDL, CDPLC, and Onomichi Dockyard. Completion of the transaction is subject to regulatory approvals and is expected within four to six months.
Colombo Dockyard, incorporated in 1974, is listed on the Colombo Stock Exchange. The company operates four drydocks and multiple berths, with a capacity to handle vessels up to 125,000 DWT. It provides shipbuilding, ship repair, and marine engineering services.
For the year ended December 31, 2024, CDPLC reported a consolidated turnover of LKR 25,447 million and a net worth of LKR 5,311 million. The previous year’s turnover stood at LKR 36,168 million. The company also has a live order pipeline of over $300 million.
Colombo Dockyard is located within the Port of Colombo, which is situated along a key Indian Ocean trade route. The facility serves both commercial and government clients from Asia, the Middle East, and Africa.
Read more: Mazagon Dock: Management Anticipates Revenue Growth and Expanding Order Pipeline in FY26!
Mazagon Dock Shipbuilders share price closed at ₹3,188.00 on June 27, up 2.12% for the day; the stock has gained 40.50% in the past six months and 48.92% over the past year.
As of the March quarter, the government's 84.83% stake in Mazagon Dock remains higher than the minimum public shareholding requirement of 25% for listed companies in India.
Once the acquisition is completed, Colombo Dockyard will become a subsidiary of MDL. This is MDL’s first overseas investment and provides it with an operational presence outside India.
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.
Published on: Jun 28, 2025, 11:16 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
