Colombo Dockyard plans Rs12.9bn rights issue on Mazagon take-over
- CNL Reporter
- July 8, 2025
- News
- Colombo Dockyard
- 0 Comments
Sri Lanka’s Colombo Dockyard said it will offer 323 million shares at 40 rupees to existing shareholders, and controlling shareholder Onomichi of Japan will renounce their entitlement in favour of India’s Mazagon Dock Shipbuilders Limited.
Mazagon was also ready to take any rights not taken up by other shareholders.The rights issue will inject 12.9 billion rupees to the cash-strapped Dockyard.
Mazagon is expected to make a mandatory offer to existing shareholders. Mazagon said in a filing in India’s National Stock Exchange that it expects to spend up 52.9 million dollars to take control of Colombo Dockyard.
MDL has a strong reputation as a technologically advanced and high-quality shipbuilder for both Indian and overseas markets.
MDL is a public sector enterprise, traded in the National Stock Exchange and Bombay Stock Exchange and is a “Navratna” status company, a recognition awarded by the Indian government to selected public sector undertakings (PSUs) that have demonstrated strong financial performance, operational efficiency and has financial autonomy.
This collaboration marks a significant milestone in the growth and development of Sri Lanka’s maritime sector, offering substantial benefits to the nation and Colombo Dockyard alike.
