Mazagon Dock Shipbuilders to Acquire 51% Stake in Colombo Dockyard for USD 52.96 Million

Mazagon Dock Shipbuilders Limited (MDL), a prominent Indian shipyard, has announced that its Board of Directors has approved the acquisition of a controlling and substantial stake in Colombo Dockyard PLC (CDPLC), a Sri Lankan company listed on the Colombo Stock Exchange. This strategic investment, confirmed on 27 June 2025, will not exceed USD 52.96 million, which is approximately Rs 452 crore at the current exchange rate.

The acquisition will be carried out through a mix of primary subscription to new shares and the purchase of existing shares from current shareholders, including Onomichi Dockyard Co. Ltd., the present majority stakeholder. Definitive agreements detailing the terms and conditions of the transaction have already been executed between MDL, CDPLC, and Onomichi. The completion of the acquisition is subject to customary closing conditions and necessary statutory and regulatory approvals.

Upon successful completion of the deal, MDL will acquire at least 51 percent of the equity shares in CDPLC, thereby gaining majority control and making CDPLC a subsidiary of MDL. Colombo Dockyard PLC, incorporated on 14 June 1974, is a public limited company registered under Sri Lankan law.

It operates primarily in the shipbuilding and ship repair sectors. For the financial year ending 31 December 2024, CDPLC reported a consolidated turnover of LKR 25,447 million and a net worth of LKR 5,311 million. In the previous financial years, the company posted a turnover of LKR 36,168 million in 2023 and LKR 27,292 million in 2022.

The acquisition is expected to be completed within four to six months. It represents a significant strategic move for MDL, aimed at strengthening its position in the shipbuilding and ship repair industry.

The company anticipates that this acquisition will unlock operational synergies, enhance its research and development capabilities, and broaden its market presence. This aligns with MDL's long-term growth strategy and is expected to make a positive contribution to its overall business goals in the maritime sector.

Mazagon Dock Shipbuilders Limited, established in 1774, is one of India's oldest and most respected shipyards. Over the decades, MDL has built a wide variety of vessels, including warships, submarines, cargo and passenger ships, as well as offshore platforms. Since 1960, it has delivered more than 800 vessels, demonstrating its extensive expertise and experience in ship construction.

In recognition of its outstanding performance and contribution to India's defence sector, MDL was granted 'Navratna' status in June 2024, placing it among the elite group of top-performing public sector enterprises in the country.

As of 31 March 2025, MDL is a debt-free company with a market capitalisation exceeding Rs 1,20,000 crore. Its order book at that date stood at Rs 32,260 crore. The company's share price has risen by 66 per cent from its 52-week low of Rs 1,917.95 and has delivered exceptional returns of over 2,400 per cent over the past three years. This strong financial performance underlines MDL's solid foundation and ambition to become a leading force in the global shipbuilding and ship repair industry.