FINANCIAL CHRONICLE – Mazagon Dock Shipbuilders Limited, an Indian state-owned company, has extended a mandatory offer to purchase the remaining shares of Colombo Dockyard at a price of 40 rupees each. This move follows their acquisition of a 41.73% stake last month. The mandatory offer is aimed at acquiring the remaining 58.27% of the company.
In a recent rights issue, Mazagon Dock Shipbuilders acquired 164,916,229 ordinary shares of Colombo Dockyard. These shares were purchased from the unsubscribed rights entitlement of the previous stakeholder, Onomichi Dockyard Company, at 40 rupees per share, totaling 6,596,649,160 rupees.
On Friday, Colombo Dockyard’s stock was trading at 157 rupees, an increase of 4.75 rupees, amidst weeks of market speculation.
The mandatory offer pertains to 230,307,853 ordinary shares. According to Section 183 of the Securities & Exchange Commission of Sri Lanka Act No. 19 of 2021, Mazagon Dock Shipbuilders is required to make a mandatory offer to acquire the ordinary shares held by the remaining shareholders.
Mazagon Dock Shipbuilders, based in Mumbai, India, specializes in the design, construction, repair, and refurbishment of naval vessels, submarines, offshore platforms, and various commercial vessels. The Government of India holds the majority stake in the company, with an 81.22% equity share through direct holdings.
(Colombo/Feb6/2026)
