Mazagon Dock shares jump 8% as board to consider stock split, dividend on Oct 22

Mazagon Dock shares jumped over 5% as board to considering stock split, dividend

PSU Mazagon Dock share price jumped 8 percent on October 18 as the company announced to mull stock split and interim dividend in its board meeting on October 22, Tuesday.

The company has also fixed the record date of Wednesday, 30 October 2024 for the purpose of payment of interim dividend on equity shares for the financial year 2024-25, if declared by the board.

The state-run defence company in an exchange filing, said "a meeting of the board of directors of Mazagon Dock Shipbuilders Limited is scheduled on Tuesday, 22 October 2024 to consider declaration of Interim Dividend for the financial year 2024-25 and sub-division/ Split of Equity Shares of the company."

The current face value of each stock of the company is Rs 10 and it will also be the first stock split in the company's history.

The shares witnessed sharp up move in the price movement in Friday's trading session with the stock rising 8.78 percent to its day's high of Rs 4,610 per share on the NSE. At the time of publishing, the stock was trading at Rs 4,566.35 apiece on the NSE, up 7.75 percent.

The government of India holds 84.83 percent stake in the state-run Mazagon Dock as of September 2024 quarter. Mazagon Dock Shipbuilders raised Rs 443 crore through its public issue during September 29-October 1. The share were listed at Rs 216.25 delivering investors return of Rs 71.25 compared to IPO price band of Rs 135 to Rs 145 per share.

The company is engaged in the construction and repair of warships and submarines for the Ministry of Defence.

It had reported a consolidated net profit of Rs 696 crore for the quarter ended June on higher income, an increase of 121 per cent on-year. The company had posted a net profit of Rs 314 crore in the year-ago period.

Total income jumped nearly 10 per cent to Rs 2,628 crore crore during the April-June period of the current fiscal from Rs 2,405.42 crore in the corresponding period of the previous year, according to a regulatory filing.

The revenue from operations for the period under review was reported at Rs 2,357 crore against Rs 2,172.76 crore in the first quarter of the previous financial year.

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