Multibagger Defence PSU major Mazagon Dock Shipbuilders announces stock split, interim dividend: Check details

The defence PSU major Mazagon Dock Shipbuilders in its board meeting held today (October 22, 2024) announced a 1:2 stock split. Accordingly, the company will split one share of Rs 10 face value into two shares of face value of Rs 5, subject to shareholders' approval.

"The record date for the purpose of above sub-division/ split of Equity Shares shall be decided after obtaining approval for sub-division/ split from the shareholders through postal ballot electronic voting process and will be intimated in due course," said the company's filing with the exchanges.

For the unversed, stock split in simple terms is a decision taken by the board of directors of a company to divide its existing shares into multiple shares. Simply speaking, the process of dividing the outstanding shares into further smaller shares is known as stock split.

This is the company's first-ever stock split which it has decided on due to the below specified reasons:

- In order to comply with DIPAM guidelines on capital restructuring

-To encourage wider participation of small investors

- To enhance the liquidity of the equity shares of the company 

Alongside, the company has also announced an interim dividend of Rs 23.19 per equity share of Rs. 10 each fully paid-up for the financial year 2024-25. In respect of the same, the company has previously intimated record date as October 30. This means shareholders who will be holding the stock of Mazagon Dock as on the record date in their demat account will be entitled to receive the dividend.

Also, the dividend of the aforesaid interim dividend for the FY25 will be completed on or before 20 November 2024

Mazagon Dock Shipbuilders share price 

Ahead of the board meeting today, shares of the state-run entity ended nearly 11 per cent lower at Rs 4,159.95 apiece on the BSE. The stock over the past one year has delivered 100 per cent return.