Mazagon dock shipbuilders Limited has successfully completed a major strategic acquisition, securing a substantial stake in Sri Lankan shipbuilding company Colombo Dockyard PLC (CDPLC). The company informed stock exchanges on January 21, 2026, about the conclusion of this significant transaction that strengthens its international presence in the shipbuilding sector.

Acquisition Details

The acquisition involved the purchase of 16,49,16,229 fully paid ordinary shares in CDPLC, representing a commanding 41.73% stake in the Sri Lankan shipbuilder. The transaction was executed through the allotment of unsubscribed rights shares that were originally part of Onomichi Dockyard Co. Ltd.'s allocation.

Tripartite Agreement Framework

The acquisition is part of a comprehensive tripartite agreement entered into between Mazagon Dock Shipbuilders, CDPLC, and Onomichi Dockyard Co. Ltd. This strategic partnership framework has facilitated the current transaction and sets the foundation for further developments in the relationship between these shipbuilding entities.

The agreement demonstrates Mazagon Dock's commitment to expanding its international footprint and establishing strategic partnerships in key maritime markets across the region.

Mandatory Offer Process

Following the successful acquisition of the 41.73% stake, Mazagon Dock Shipbuilders is now proceeding with the next phase of the transaction. The company has initiated a mandatory offer process to acquire additional shares from existing CDPLC shareholders.

This mandatory offer is required under Sri Lankan securities regulations, specifically Rule 31(1)(a) of the Company Take-overs and Mergers Code 1995 (as amended in 2003), which governs corporate acquisitions and mergers in Sri Lanka.

Strategic Implications

The acquisition marks a significant milestone in Mazagon Dock Shipbuilders' expansion strategy, establishing a strong presence in the Sri Lankan shipbuilding market. Colombo Dockyard PLC is a prominent player in the regional maritime industry, and this partnership is expected to create synergies between the two companies' operations and capabilities.

The transaction builds upon Mazagon Dock's earlier disclosure dated June 27, 2025, indicating that this acquisition has been a carefully planned strategic initiative that has now reached a crucial implementation phase.

Regulatory Compliance and Future Updates

Mazagon Dock Shipbuilders has maintained full transparency throughout the acquisition process, keeping stock exchanges informed of all developments. The company has committed to providing regular updates on further developments related to the mandatory offer process and any additional aspects of the CDPLC acquisition.

The disclosure was made in compliance with Regulation 30(7) of SEBI (LODR) Regulations, 2015, demonstrating the company's adherence to regulatory requirements and commitment to maintaining transparency with stakeholders and investors.

Mazagon Dock Shipbuilders has issued an official clarification regarding recent media reports about India and Germany being in talks for an $8 billion submarine deal. The company sought to address market speculation and provide clarity on its involvement in ongoing submarine projects.

Company's Official Position

The shipbuilding company confirmed that negotiations for Project P75(I) are currently ongoing. However, Mazagon Dock Shipbuilders explicitly stated that it is not aware of any other material developments as referred to in the news report about the India-Germany submarine deal discussions.

Project P75(I) Context

Project P75(I) represents a significant submarine procurement initiative, and the company's confirmation of ongoing negotiations indicates continued progress in this defense project. The clarification suggests that while the company is actively engaged in legitimate project discussions, it wants to distinguish between confirmed developments and speculative media reports.

Market Communication

The company's proactive clarification demonstrates its commitment to transparent communication with stakeholders and the market. By addressing the media reports directly, Mazagon Dock Shipbuilders aims to prevent any misunderstanding about its current project status and involvement in submarine deals.

This clarification comes as the defense sector continues to attract significant attention from investors and media, particularly regarding large-scale procurement projects involving international collaborations.