Mumbai: State-owned defence shipbuilder Mazagon Dock Shipbuilders Limited (MDL) has completed the acquisition of a 41.73% equity stake in Colombo Dockyard PLC (CDPLC), marking a significant step in its international expansion strategy. The acquisition was carried out through the allotment of unsubscribed rights shares originally held by Japan-based Onomichi Dockyard Co. Ltd, amounting to 16.49 crore fully paid ordinary shares of CDPLC, according to a regulatory filing to the stock exchanges on Wednesday.
Mandatory Offer to Follow Under Sri Lanka Takeover Rules
As part of a Tripartite Agreement between Mazagon Dock, Colombo Dockyard PLC, and Onomichi Dockyard, the Indian PSU is now in the process of acquiring additional shares from existing CDPLC shareholders.
MDL confirmed that a mandatory offer will be made in accordance with Rule 31(1)(a) of Sri Lanka’s Takeovers and Mergers Code, 1995, further strengthening its control over the Sri Lankan shipbuilding firm. The company stated that any further developments will be communicated to the stock exchanges in compliance with SEBI (LODR) Regulations, 2015.
Strategic Significance of the Acquisition
Colombo Dockyard PLC is a prominent shipbuilding and repair facility in South Asia, and this acquisition aligns with MDL’s long-term objective of expanding its global footprint, enhancing maritime capabilities, and fostering technology collaborations.
The move is also expected to strengthen India–Sri Lanka industrial cooperation, particularly in the strategic maritime and defence manufacturing sector, reflecting the increasing role of Indian PSUs in regional industrial partnerships.
Mazagon Dock’s Global and Domestic Role
Mazagon Dock Shipbuilders is among India’s leading defence and commercial shipyards, specializing in construction and repair of warships, submarines, and advanced vessels. Since its inception, MDL has built 802 vessels, including destroyers, frigates, missile boats, submarines, offshore platforms, cargo ships, passenger vessels, and tugs for both domestic and international clients.
About Mazagon Dock Shipbuilders Limited (MDL)
Mazagon Dock Shipbuilders Limited (MDL) is a Navratna Central Public Sector Undertaking under the Ministry of Defence, headquartered in Mumbai. MDL designs, builds, and maintains warships, submarines, and other vessels for the Indian Navy and Coast Guard, while also supplying commercial vessels and offshore platforms internationally. The company combines strategic defence capabilities with advanced shipbuilding technologies, making it a key contributor to India’s maritime security and global shipbuilding presence.
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