Mazagon Dock Shipbuilders Mazagon Dock shares surge over 8.5% as board mulls stock split
Mumbai/IBNS: Shares of Mazagon Dock Shipbuilders, a major public-sector shipyard under India's Ministry of Defence (MoD), saw a significant rise of nearly 8.7 percent, reaching Rs 4,608 per share on Friday (Oct. 18).
The surge followed the company's announcement that its board will consider both a stock split and an interim dividend for the financial year 2024-25 during an upcoming meeting.
The Board of Directors is set to convene on Oct. 22, 2024, to discuss and possibly approve these key proposals.
In an exchange filing, the company stated: "A meeting of the Board of Directors of Mazagon Dock Shipbuilders Limited is scheduled on Tuesday, 22 October 2024, inter alia, to consider a) Declaration of Interim Dividend for the financial year 2024-25. b) Sub-division/split of equity shares of the company pursuant to the provisions of Section 61(1)(d) of the Companies Act, 2013."
Additionally, the company has designated Oct. 30, 2024, as the record date for determining eligibility for the interim dividend payment, pending board approval.
Mazagon Dock's stock has been in the spotlight due to a series of positive developments.
On Oct. 10, the company secured an order worth Rs 1.22 billion from Maharashtra State Power Generation (MAHAGENCO).
In late September, it announced the start of production for its first multipurpose cargo vessel (MPV) for Denmark's Navi Merchants.
That same month, the company won a substantial Rs 14.86 billion contract from Oil and Natural Gas (ONGC) for subsea pipeline replacement.
Additionally, in early September, India's defence ministry approved military equipment purchases totaling Rs 1.45 trillion ($17.27 billion), further bolstering the defence sector.
Mazagon Dock's shares have recently seen a recovery, gaining 17.14 percent over the past nine trading sessions.
Despite this, the stock remains 21.6 percent below its all-time high of Rs 5,859 per share, which was achieved in July, after a strong rally from March 2023 to July 2024 followed by profit booking in the subsequent months.
As a leading public-sector enterprise, Mazagon Dock specializes in shipbuilding, submarine construction, and engineering products.
Since its founding in 1934, the company has delivered 802 vessels, including 28 warships and seven submarines, according to its Q1 FY25 earnings report.
In June, the company received Navratna status from the Department of Public Enterprises (DPE), further enhancing its position as a key player in India's defence sector.
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