Mazagon Dock announces 1:2 stock split and dividend of Rs 23 per share

New Delhi: State-owned Mazagon Dock Shipbuilders Ltd. announced a stock split after its board meeting on Tuesday, October 22. The company will split one share with a face value of Rs 10 into two shares with a face value of Rs 5.

The company has also declared an interim dividend of Rs 23.19 per equity share. The record date for the interim dividend has been fixed as October 30, 2024. The company had declared a final dividend of Rs 12.11 per share for 2024 earlier this year.

The Record date for the stock split will be announced after the company receives shareholder approval through a postal ballot. This will be the first time in the company's trading history that it has announced such a corporate action. While the company has issued dividends in the past, it has never carried out a stock split or has issued bonus shares.

In percentage terms, the stake of retail shareholders, or those with an authorized share capital of less than Rs 2 lakh, increased from 9% at the end of June to 10.6% at the end of the September quarter. On the contrary, Foreign Portfolio Investors reduces their stake in Mazagon Dock to 1.45% at the end of September from 2.44% in the June quarter.

On a year-on-year basis, the number of retail shareholders in Mazagon Dock has doubled from 3 lakh at the end of September last year to the current 6.56 lakh. As of the September quarter shareholding pattern, the government had an 84.83% stake in Mazagon Dock, which is still above the minimum public shareholding requirement of 75%.

The Shares of Mazagon Dock reached a record high of Rs 5,860 in July this year and are down over 30% from those levels.