Mazagon Dock Acquires 41.73% Stake in Colombo Dockyard; Triggers Mandatory Offer

MUMBAI / COLOMBO – India’s premier defence shipbuilder, Mazagon Dock Shipbuilders Limited (MDL), has officially entered the international arena by acquiring a 41.73% equity stake in Colombo Dockyard PLC (CDPLC). The transaction, finalized on January 19, 2026, marks the first major overseas acquisition by an Indian public sector shipyard.

The acquisition was executed through the allotment of 16.49 crore unsubscribed rights shares originally belonging to the Japan-based majority shareholder, Onomichi Dockyard Co. Ltd. The deal, valued at approximately LKR 6.6 billion (at ₹40 per share), was conducted under a strategic tripartite agreement between MDL, CDPLC, and Onomichi.

Next Steps: Mandatory Open Offer

Following this acquisition, MDL has triggered a mandatory offer under Rule 31(1)(a) of Sri Lanka’s Takeovers and Mergers Code. This process will allow the Indian PSU to acquire additional shares from existing minority shareholders, potentially increasing its controlling interest.

Strategic Significance for India

Captain Jagmohan (Retd.), Chairman and Managing Director of MDL, described the acquisition as a "gateway" for the company’s transformation into a global shipbuilding enterprise.

• The move is strategically aligned with the Maritime Amrit Kaal Vision 2047, offering several key advantages:
• Strategic Location: CDPLC is situated within the Port of Colombo, one of the busiest transshipment hubs in the Indian Ocean, providing MDL a foothold in a vital maritime corridor.
• Service Expansion: MDL can now leverage CDPLC’s proven expertise in repairing offshore support vessels and cable-laying ships to serve global commercial clients.
• Regional Influence: The acquisition strengthens India-Sri Lanka industrial cooperation and provides a counterbalance to regional maritime competition.

Operational Synergy

MDL plans to revitalize the debt-ridden Colombo shipyard by integrating it into Indian supply chains and routing new construction contracts to the facility. CDPLC, which has a track record of delivering vessels to France, Japan, and the UAE, will gain access to MDL’s advanced engineering and financial backing to secure high-value global tenders.