Mazagon Dock Shipbuilders, a leading shipbuilding yard in India, on Tuesday, October 22 announced that its board of directors approved a stock split of the company’s equity share along with an interim dividend.
Stock Split Details
The board approved the splitting of shares in the ratio of 1:2, suggesting that investors who hold one share will get an additional share but at no additional cost.
“Existing 1 (One) Equity Share of face value of Rs. 10/- each fully paid up shall be sub-divided/ split into 2 Equity Shares of face value of Rs. 5/- each fully paid up,” the company said in an exchange filing.
The company said it is undertaking the stock split to comply with DIPAM guidelines on capital restructuring, encourage wider participation of small investors, and enhance the liquidity of the shares.
It did not declare the record date for the stock split yet. It said the record date for the purpose of sub-division/ split of equity shares shall be decided after obtaining approval for sub-division/ split from the shareholders.
This is the first time that the Mazagon Dock has announced a stock split.
Dividend Details
Apart from the stock split, the board also declared an interim dividend of ₹23.19 per equity share of ₹10 each fully paid up for the financial year 2024-25. The company has fixed Wednesday, October 30 as the record date for the payment of the interim dividend.
The payment of the said dividend will be completed on or before November 20, the company said in an exchange filing.
The company had declared a final dividend of ₹12.11 per share earlier this year.
These corporate announcements failed to lift investor sentiment around the stock. The stock after trading with deep cuts throughout the day ended at ₹4,206 on NSE, down 9.87 per cent.
The stock after delivering multibagger returns to investors over the past one year to the tune of 113 per cent has recently come under pressure amid a selloff in defence stocks. The stock has lost 28 per cent from its 52-week high touched in July this year.