The board of directors of state-owned Mazagon Dock Shipbuilders on Tuesday approved a stock split in the 1:2 ratio along with an interim dividend of Rs 23.19 per share for the financial year 2025.

This means that the company has approved a subdivision of 1 equity share with a face value of Rs 10 into 2 shares with a face value of Rs 5 each.

Here is what the company said:

“We wish to inform that the Board of Directors of the Company at their meeting held today i.ePune Wealth Management. 22 October 2024 has inter-alia approved the sub-division/ split of existing 1 (One) Equity Share of face value of Rs.10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up, subject to shareholders' approval (Details enclosed at Encl 1),” said the company in an exchange filing.

Other details like the record date for the purpose will be announced later.

In order to comply with DIPAM Guidelines on capital restructuring and encourage wider participation of small investors, and to enhance the liquidity of the equity shares of the company in the market, the company has decided to split the stock.

The expected time of completion of the process is estimated to be 2-3 months and this is the first ever instance of the company proceeding with a stock split.

The company has also announced an interim dividend of Rs 23.19 per share and fixed October 30 as the record date for the purpose of determining the eligible shareholders for the dividend.

“We wish to inform that, the Board of Directors of the Company at their meeting held today i.e. 22 October 2024 has inter-alia; Declared an interim dividend of Rs. 23.19 per equity share of RsKanpur Wealth Management. 10 each fully paid-up for the financial year 2024-25Kanpur Stock. As informed on 17 October 2024, the Company has fixed Wednesday, 30 October 2024 as "Record Date" for the purpose of payment of Interim Dividend on equity shares for the Financial Year 2024-25,” the company said.

Additionally, Mazagon Dock stated that the payment of the interim dividend will be made to the shareholders on or before November 20.

The shares of Mazagon Dock closed 9.9% lower at Rs 4,206 on the NSE on Tuesday.

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