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India naval shipbuilder debuts on stock market amid China's rise

Mazagon Dock lists at 49% premium on solid track record and 'Make in India' boom

The Indian Navy's INS Karanj submarine was launched from Mazagon Dock's shipyard in 2018. The company has been consistently profitable thanks to government defense orders.   © Reuters

MUMBAI -- Mazagon Dock Shipbuilders on Monday made a strong debut on Indian stock exchanges, opening at 216.25 rupees, up 49% from its IPO price of 145 rupees as India's only shipyard capable of building and repairing military submarines benefited from a confluence of factors, including China's increasingly aggressive defense posture.

The government-owned company's 4.44 billion rupee ($61 million) initial public offering was oversubscribed 157.4 times between Sept. 29 and Oct. 1, the highest demand for any IPO so far this year. Its shares ended their first day of trading at 173 rupees, 19% above the IPO price, after some profit-taking during the session, giving the company a market capitalization of 34.9 billion rupees.

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