Mazagon Dock Approves 1:2 Stock Split & ₹23.19 Dividend! Record Date and Key Details Inside

Mazagon Dock Shipbuilders, a well-known shipbuilding company in India, recently made two major announcements regarding its stock and dividend. On October 22, the company’s board of directors approved a stock split and declared an interim dividend.

Stock Split Details

The board has approved a stock split in the ratio of 1:2. This means that for every one share an investor holds, they will receive an additional share at no extra cost. In simpler terms, the company’s current equity shares, which have a face value of ₹10 each, will be split into two shares of ₹5 each. This stock split is aimed at increasing the liquidity of the shares and encouraging more small investors to participate by making the shares more affordable. The company has also stated that the stock split complies with the Department of Investment and Public Asset Management (DIPAM) guidelines on capital restructuring.

However, the company has not yet announced the record date for the stock split. The record date is the deadline for investors to be eligible for the stock split, and it will be decided after the shareholders approve the split.

This marks the first time that Mazagon Dock has initiated a stock split.

Dividend Details

Alongside the stock split, Mazagon Dock Shipbuilders also declared an interim dividend of ₹23.19 per equity share for the financial year 2024-25. The record date for this dividend has been set for Wednesday, October 30, meaning that only those shareholders who hold shares on that date will be eligible to receive the dividend. The company has also specified that the dividend will be paid out by November 20.

Earlier in the year, Mazagon Dock had declared a final dividend of ₹12.11 per share, and the newly announced interim dividend adds to the company’s history of rewarding its shareholders.

Market Reaction

Despite these announcements, investor sentiment surrounding Mazagon Dock Shipbuilders was not immediately positive. The company’s stock, which has performed remarkably well over the past year with returns of around 113%, has faced selling pressure in recent weeks. As a result, the stock saw a decline of 9.87% on October 22, closing at ₹4,206 on the NSE (National Stock Exchange).

This drop comes after a recent high in July 2023, and the stock has now lost 28% from its 52-week peak. Analysts suggest that the overall downturn in defence sector stocks has contributed to the pressure on Mazagon Dock’s shares.