Shares of Mazagon Dock Shipbuilders are under focus higher than usual today, given trade-ex split scheduled for December 27. The stocks have witnessed a decline of 1.77 percent, trading at Rs 2,323.00 as of 12:00 pm.
This comes as the company gears up for its 1:2 stock split. Under this stock split, each existing share of Mazagon Dock with a face value of Rs 10 will be divided into two new shares with a face value of Rs 5 each. As per other observations by media reports, certain trading applications could be showing unadjusted previous closing price, giving an impression of a 50 percent fall.
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The stock opened today at Rs 2,375, indicating initial enthusiasm around the split, but the gains were short-lived. As per the T+1 settlement mechanism, investors needed to buy Mazagon Dock shares today to ensure their names are reflected in the list of eligible shareholders on the record date and receive the split shares accordingly.
As per the company expectations, this move is aimed at enhancing liquidity and pushing further participation from retail investors. During the tenure of past year, Mazagon Dock shares doubled its returns at 106 per cent.
For Q2 FY 2025, the Indian shipyard registered net sales worth Rs 2,756.83 crore, marking an increase compared to Rs 2,362.47 crore in Q2 FY 2024. Simultaneously, its net sales surged from Rs 1,827.70 crore in Q2 FY 2024 to Rs 2,756.83 crore in Q2 FY 2025, marking a substantial year-on-year growth of approximately 51%.
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