Mazagon Dock Announces 2-For-1 Stock Split, Approves Interim Dividend
Mazagon Dock Shipbuilders has set a record date of Oct. 30, 2024 for the payment of an interim dividend, following the approval of a 2-for-1 stock split by its board.
Mazagon Dock Shipbuilders Ltd. on Monday announced the splitting of one stock into two. The board, in a meeting, also approved an interim dividend of Rs 23.19 per share.
The company has set a record date of Oct. 30, 2024, for the purpose of payment of an interim dividend for financial year 2025, the company said in an exchange filing in Oct. 17.
In comparison, the company had issued a final dividend of Rs 12.11 apiece on Sept. 19, 2024. The company gave an interim dividend of Rs 15.34 on Nov. 20, 2023. However, the record date for the purpose of stock split will be decided through the postal ballot electronic voting process.
The shares of Mazagon Dock have fallen over 11% on Tuesday after the company made the announcement. Mazagon Dock Shipbuilders' share price snapped a two-day winning streak on Tuesday, as it erased gains shortly after opening. The shares had gained 3.10% in the last two days.
Shares of the company declined the most among shipbuilder stocks on the National Stock Exchanges on Tuesday. A slump in shipbuilding stocks also weighed on the sentiment for Mazagon Dock Shipbuilders' stocks.
The shares of Mazagon Dock closed lower on Tuesday. The shares fell as much as 11.80% during the day to Rs 4,116 apiece on the NSE. The stock closed 10.64% lower at Rs 4,169.80 per share. This compares with a 0.28% decline in the benchmark Nifty 50. It has risen 115.43% in the last 12 months and 82.47% year-to-date.
Out of four analysts tracking the company, two maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 20%.
