The company has fixed December 27, 2024, as the record date for its stock split.
The company will split one share with a face value of ₹10 into two shares of face value of ₹5.
This means that shareholders who have shares of Mazagon Dock Shipbuilders in their demat account before December 27, 2024 will be eligible for the share split.
This is the first time in the company’s trading history that it has announced such a corporate action. While Mazagon Dock has issued dividends in the past, it had never carried out a stock split or has issued bonus shares.
A stock split is generally considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.
Mazagon Dock shares had made a record high of ₹5,860 in July 2024 and are down over 22% from those levels.
As of the September 2024 quarter shareholding pattern, the government had an 84.83% stake in Mazagon Dock, which is still above the minimum public shareholding requirement of 75%.
Shares of Mazagon Dock Shipbuilders settled 1.11% lower at ₹4,543 on Monday. Despite the correction from the peak, the stock has doubled investor wealth so far in 2024, surging 98%.
