Mazagon Dock Shipbuilders Limited has informed the Exchange that the Board of Directors of the company at their meeting held on 27.06.2025 has approved the proposal for acquisition of a controlling and substantial stake of Colombo Dockyard PLC by way of an investment not exceeding USD 52.96 million through a combination of primary subscription and secondary acquisitions.
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Mazagon Dock Shipbuilders (MAZDOCK) has approved the acquisition of a controlling and substantial stake (minimum 51%) in Colombo Dockyard PLC (CDPLC), a listed shipbuilding and ship repair company based in Sri Lanka. The total investment will not exceed USD 52.96 million (approximately INR 452 crore), funded through a mix of fresh share subscription and buying shares from existing shareholders, including Japan's Onomichi Dockyard (currently the majority owner). Once completed, CDPLC will become a subsidiary of MAZDOCK. The deal, signed on 27 June 2025, is subject to regulatory approvals including the Colombo Stock Exchange and is expected to close within 4 to 6 months. CDPLC reported a turnover of LKR 25,447 million in FY2024, down from LKR 36,168 million in FY2023.
This is a strategic overseas expansion for MAZDOCK, giving it a foothold in Sri Lanka's shipbuilding market and access to operational synergies, R&D capabilities, and a wider customer base. The investment size (~INR 452 crore) is meaningful but manageable for the company, and the deal could be earnings-accretive over time if synergies are realized. Short-term stock reaction may be positive on growth prospects, though execution and regulatory risks remain.