Mazagon Dock Shipbuilders, a prominent Navratna public sector company, is in the spotlight as it prepares for a crucial board meeting today to discuss the potential declaration of an interim dividend. Scheduled for April 8, 2025, this meeting is highly anticipated by investors eager for updates on the company’s financial returns. According to a company announcement made on March 28, the board will consider declaring the second interim dividend for the financial year 2024-25 to benefit its equity shareholders.

Anticipated Dividend Declaration

If the board gives the green light, this interim dividend will follow a previous declaration of ₹23.19 made earlier, with the record date set for October 30, 2024. Since February 22, 2021, Mazagon Dock has distributed nine dividends, totaling ₹35.30 per share over the past year. Currently, its dividend yield stands at 1.52% based on the latest stock price.

Recent Offer for Sale (OFS) Insights

In addition to dividend discussions, the company recently wrapped up a two-day Offer for Sale (OFS), where the Government of India, as the promoter, aimed to offload a 2.83% stake. There was an option to increase the stake by an additional 2% if the demand was high. The oversubscription option was exercised, leading to a total OFS of 1,61,80,354 shares, which constitutes 4.01% of the company’s outstanding equity. The floor price for this offer was set at ₹2,525 per share.

• OFS Timeline:
  • April 4: Opened for non-retail investors, fully subscribed.
  • April 7: Opened for retail investors and others with unallocated bids.

Despite the volatility, the retail portion saw minimal interest, with a subscription rate of just 0.07% of the total offer size.

Share Price Performance

Mazagon Dock’s shares are showing signs of recovery today, bouncing back sharply after a brief downturn. In anticipation of the board meeting concerning the interim dividend, the stock surged by 5.4%, reaching a high of ₹2,446 on the BSE. By 9:55 AM, the shares were still performing well, trading at ₹2,380, reflecting a 2.6% increase.

Conclusion

As a Navratna status company with a market capitalization nearing ₹96,000 crore, Mazagon Dock Shipbuilders continues to be an attractive option for investors. The upcoming board meeting is expected to bring exciting developments regarding the interim dividend, further enhancing shareholder value in a positive market environment.