Mazagon Dock Shares Surge Ahead of Board Meeting on Stock Split and Dividend

Shares of Mazagon Dock Shipbuilders Ltd., a state-run defense company, saw a significant rise of over 5% on October 18, 2024. This surge occurred after the company announced its plans to consider a stock split and interim dividend during its upcoming board meeting slated for October 22, 2024, a Tuesday.

As reported in an exchange filing, Mazagon Dock has scheduled the board meeting to deliberate on the declaration of an interim dividend for the financial year 2024-25 and the subdivision or split of its equity shares. The company further informed that the record date for the interim dividend, if declared, has been set for Wednesday, October 30, 2024.

Currently, the face value of each equity share of Mazagon Dock is INR 10. This represents the first time in the company’s history that a stock split is being considered, marking a pivotal moment for its shareholders.

On the trading day of this announcement, Mazagon Dock’s stock rose by 5.24% to a high of INR 4,460 per share on the National Stock Exchange (NSE). By the time of publication, the share price had slightly adjusted to INR 4,430, still holding a gain of 4.54%.

The government of India retains a majority stake of 84.83% in Mazagon Dock, as recorded at the end of the September 2024 quarter. The company’s market presence was initially marked by a public issue that raised INR 443 crore from September 29 to October 1, 2020. The IPO’s pricing band ranged from INR 135 to INR 145 per share, with shares initially listed at INR 216.25.

Mazagon Dock Shipbuilders is renowned for its construction and repair services of warships and submarines, serving primarily the Ministry of Defence. For the quarter ending in June, the company reported a consolidated net profit of INR 696 crore, reflecting a 121% increase compared to the same period last year, when the profit was INR 314 crore.

The company’s total income rose by nearly 10% to INR 2,628 crore during the April-June quarter, up from INR 2,405.42 crore in the equivalent period of the previous fiscal year. Revenue from operations was reported at INR 2,357 crore, an increase from INR 2,172.76 crore for the first quarter of the previous financial year.