Mazagon Dock Shipbuilders’ stock, a PSU defense stock, surged over 6% today, pushing its market cap to Rs 1 lakh crore.
Mazagon Dock Shipbuilders‘ share price, a PSU defense stock, surged over 6% to hit a record high. Starting at Rs 4,715.10 on NSE, it rose to Rs 4,989.95, a 6.52% increase, amid strong buying interest. By 11:30 AM, the stock traded near its peak at Rs 4,932, with 72 lakh shares changing hands. It has gained 14% over the past two sessions.
Mazagon Dock, which debuted on bourses in October 2020 at ₹145 per share, has surged over 3,000% since then. It is a state-run shipbuilder, with the government of India holding a majority stake. According to a June 28 Moneycontrol report, the central government plans to divest small stakes in certain state-run firms, including Mazagon Dock, as per senior government officials.
As of the March quarter, the government held an 84.8% stake in Mazagon Dock. To meet Minimum Public Shareholding norms, it must reduce its stake to 75% by selling 9.8%. The quantum of stake to be sold in these PSUs is unspecified.
According to a Moneycontrol report, discussions for an Offer for Sale in Mazagon Dock have been ongoing with the Defence Ministry since last year, with some reservations being addressed. Mazagon Dock has 20 crore outstanding shares. If the government sells around 9.8% stake (1.97 crore shares) at Wednesday’s high of ₹4,650, it could raise nearly ₹9,200 crore. These calculations are based on available data; no official announcement on an Offer for Sale in Mazagon Dock has been made.
Despite the surge, ICICI Securities issued a “sell” recommendation on the stock in June with a ₹900 price target. Mazagon Dock shares are trading 6.8% higher at ₹4,590, having risen 40% in the last month.
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