Mazagon Dock Approves USD 52.96 Mn Acquisition of Colombo Dockyard; CDPLC to Become Subsidiary
By Ankur Chandra | Published at: Jun 27, 2025 04:47 PM IST
Mumbai, June 27 — Mazagon Dock Shipbuilders Ltd (NSE: MAZDOCK, BSE: 543237) has announced its Board approval for acquiring a controlling stake in Colombo Dockyard PLC (CDPLC), a Sri Lanka-based shipbuilding and repair company, for a total consideration of up to USD 52.96 million (approximately ₹452 crore). The deal, approved at the Board meeting held earlier today, will be executed through a mix of primary and secondary share purchases.
Transaction Overview
Mazagon Dock will acquire at least 51% equity stake in CDPLC, which will result in the Sri Lankan entity becoming a subsidiary of the company. The deal includes the signing of definitive agreements between Mazagon Dock, CDPLC, and Onomichi Dockyard Co. Ltd., CDPLC’s current majority shareholder.
Key Acquisition Details
| Particulars | Details |
|---|---|
| Target Company | Colombo Dockyard PLC (CDPLC) |
| Industry | Shipbuilding and ship repair |
| Total Consideration | USD 52.96 million (approx. ₹452 crore) |
| Stake Acquired | Minimum 51% + control |
| Consideration Type | Cash |
| CDPLC FY24 Turnover | LKR 25,447 million |
| CDPLC Net Worth (as of Dec 2024) | LKR 5,311 million |
| Deal Completion Timeline | 4–6 months (post statutory approvals) |
Strategic Significance
The acquisition aligns with Mazagon Dock’s strategy to expand its regional footprint and reinforce capabilities in the shipbuilding sector. According to the company, the deal is expected to unlock operational synergies, strengthen R&D capabilities, and expand market reach across South Asia.
“This acquisition supports the Company’s long-term growth vision in the shipbuilding and ship repair industry,” the filing noted.
The move is also aimed at enhancing Mazagon Dock’s global competitiveness and leveraging CDPLC’s established base in Colombo — a key strategic maritime hub.
Regulatory Conditions
The proposed acquisition is subject to customary closing conditions, including approvals from regulatory authorities such as the Colombo Stock Exchange. The company expects to complete the acquisition within four to six months.
About Colombo Dockyard
Incorporated on June 14, 1974, Colombo Dockyard PLC is listed on the Colombo Stock Exchange and is headquartered at the Graving Docks in the Port of Colombo. CDPLC reported a consolidated turnover of LKR 25,447 million for FY24, following LKR 36,168 million in FY23 and LKR 27,292 million in FY22.
About Mazagon Dock
Mazagon Dock Shipbuilders Ltd, a Government of India undertaking, is India’s leading warship and submarine builder headquartered in Mumbai. It is a listed entity on both NSE and BSE and has played a pivotal role in the Indian defence shipbuilding ecosystem. The company is ISO 9001 certified and has steadily diversified its portfolio to include commercial vessels alongside defence production.
This acquisition marks a significant regional expansion for Mazagon Dock and reinforces India’s strategic maritime ambitions through public sector enterprise-led international investments.
REF:https://nsearchives.nseindia.com/corporate/MAZDOCK_27062025150155_Special_Agenda.pdf
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