Mazagon Dock Share Price Rises Ahead Of Dividend Decision

Mazagon Dock Shipbuilders Ltd. shares rose over 5% on Tuesday as the company’s board met to consider a second interim dividend for financial year 2025. The public sector defence shipbuilder is considering the declaration of a second interim dividend, as per an exchange filing dated March 28. The board meeting is currently underway.

If approved, this would mark the company’s second interim payout in the current fiscal. Earlier, it declared an interim dividend of Rs 23.19 per share, with a record date of Oct. 30, 2024.

The company had also paid a final dividend of Rs 12.11 per share on Sept. 19, 2024, for the previous financial year.

The government, on Friday, confirmed it would exercise the oversubscription option in its offer for sale of Mazagon Dock Shipbuilders Ltd., increasing the overall offer size to 4.01%. This includes an additional 47.69 lakh shares, or 1.18% stake, over and above the base offer of 1.14 crore shares (2.83% stake). 

The OFS opened on Friday for non-retail investors and continued on Monday for retail investors, employees, and non-retail investors with unallotted bids. The floor price was set at Rs 2,525 per share. While the government had earlier indicated it might sell up to 2% more via the oversubscription route, it ultimately opted to offload 1.18%.

Mazagon Dock stock rose as much as 5.62% during the day to Rs 2,447.55 apiece on the NSE. It was trading 2.03% higher at Rs 2,364.30 apiece, compared to a 0.97% advance in the benchmark Nifty 50 as of 11:23 a.m. 

It has risen 110.26% in the last 12 months and 6.15% on a year-to-date basis. The total traded volume so far in the day stood at 3.68 times its 30-day average. The relative strength index was at 45.67.

Four out of six analysts tracking the PSU stock have a 'buy' rating on it, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 2,369.42, implying an upside of 0.4%.