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Mazagon Dock Shipbuilders, a state-owned defense company, has announced a significant development for its shareholders: a 1:2 stock split and an interim dividend. This decision was made during the company's board meeting held on October 22nd, 2024. The stock split will effectively reduce the face value of each share from Rs 10 to Rs 5, marking the first such event in the company's history. The record date for this sub-division of equity shares will be finalized after receiving shareholder approval.
Alongside the stock split, the board also declared an interim dividend of Rs 23.19 per share for the shareholders. This interim dividend will be paid to shareholders on or before November 20th, 2024, with the record date for payment set for October 30th, 2024. This means shareholders holding the company's shares on October 30th will be eligible to receive the dividend payment.
Mazagon Dock Shipbuilders has experienced fluctuations in its share price recently. The stock closed at Rs 4,206 per share on the NSE, down by 9.87% on the day of the announcement. The stock has fallen after two consecutive days of gains, touching an intraday low of Rs 4,116 per share. Despite these recent fluctuations, the company remains a significant player in the defense sector, primarily engaged in the construction and repair of warships and submarines for the Ministry of Defense.
It is important to note that the government of India holds a substantial stake in Mazagon Dock Shipbuilders, owning 84.83% of the company as of the September 2024 quarter. The company had previously raised Rs 443 crore through a public issue between September 29th and October 1st, 2024. The shares were listed at Rs 216.25, delivering investors a return of Rs 71.25 compared to the IPO price band of Rs 135 to Rs 145 per share.
Source: Mazagon Dock announces 1:2 stock split, interim dividend of Rs 23.19 per share