Mazagon Dock Shares Fall as Board Mulls First Stock Split

22 Oct 2024 , 03:40 PM

On Tuesday, October 22, shares of Mazagon Dock Shipbuilders Ltd. dropped by 8.5%. The company’s board met to discuss a possible stock split. This is the first time Mazagon Dock is considering such a move.

At the time of writing at 3:57 pm on October 22, 2024, shares of Mazagon Dock closed at ₹4206 which is a 9.87% dip than the previous close. The stock has gained a total of 117% in the last one year, and 83% since the beginning of the year.

Although the company has issued dividends before, it has never done a stock split or given bonus shares. Currently, Mazagon Dock shares have a face value of ₹10 each. The board also reviewed a new dividend proposal. Earlier this year, they declared a final dividend of ₹12.11 per share for FY24.

By the end of September, Mazagon Dock’s retail shareholder base saw significant growth. The number of retail shareholders increased from 4.64 lakh in June to 6.56 lakh in September. Retail shareholders, holding less than ₹2 lakh in share capital, now own 10.6% of the company, up from 9% in the previous quarter. Compared to last year, the retail shareholder count doubled, rising from 3 lakh in September 2023 to 6.56 lakh in September 2024.

Foreign Portfolio Investors (FPIs) reduced their stake in Mazagon Dock, dropping from 2.44% in June to 1.45% by September. Although Indian mutual funds hold less than 1% of the company’s shares, their exposure grew slightly, from 0.68% in June to 0.76% by September.

Mazagon Dock shares hit an all-time high of ₹5,860 in July, but have since fallen by 26% from that peak. As of the September quarter, the government remains the largest shareholder, with an 84.83% stake, which is still above the minimum public shareholding requirement of 75%.