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Shares of Mazagon Dock Skyrocket Amid Government Stake Sale

Rachna Kumari
Shares of Mazagon Dock Skyrocket Amid Government Stake Sale
Shares of Mazagon Dock Skyrocket Amid Government Stake Sale

Shares of Mazagon Dock Shipbuilders have seen a significant rise, reaching record highs due to the government’s additional stake sale. The company’s market cap has now surpassed Rs 1 lakh crore.

Shares of public sector shipping company Mazagon Dock Shipbuilders have been skyrocketing for the last two days. On Wednesday, July 3, 2024, the shares of this company rose by about 8.20 percent to a record high of Rs 4,684.55, while on Thursday, July 4, 2024, its shares rose 6.3 percent to reach the level of Rs 4,990. This rise in the shares of Mazagon Dock is being seen after the news of the sale of additional stake by the government. After the record rise in the shares, the market cap of the company has increased to more than Rs 1 lakh crore.

Mazagon Dock Listed in 2020

Public sector shipping company Mazagon Dock was listed on the stock market during October 2020. At that time, the price of its IPO was Rs 145 per share. In less than four years of listing, the company’s shares have increased by more than 3,000 percent from the IPO price. The government’s stake in this public sector company is 84.8 percent. According to a report by Money Control, the government will have to sell its 9.8 percent stake in the company by following the minimum public shareholding rules. Under the minimum public shareholding rules, the government’s stake in the company will have to be reduced to 75 percent.

Shares Rise 6.3 Percent on Thursday

According to a report by CNBC Awaaz, shares of Mazagon Dock Shipbuilders Limited rose by 6.3 percent on Thursday. With this, the share price of the company reached the level of Rs 4,990. With this, the stock has registered an increase in seven of the last nine trading sessions. Due to the rise in shares on Thursday, the market cap of Mazagon Dock has crossed Rs 1 lakh crore.

Significant Growth in 2024

The report said that in the year 2024, the stock of Mazagon Dock Shipbuilders has registered a growth of 115 percent, which is more than double than before. In the last 12 months, the company’s stock has increased by more than 280 percent. In the last three years, the stock has doubled every year. In 2022, it has registered a growth of 185 percent and in 2023, its shares have registered a growth of 187 percent. As of the March quarter, it has a total of 3.75 lakh small or retail shareholders.

This remarkable surge in Mazagon Dock’s stock price is largely attributed to the government’s decision to sell additional stakes in the company. The market’s positive response to this move has significantly boosted investor confidence, driving the shares to new heights. The continued upward trend suggests a strong market performance for the company in the coming months, making it a promising investment opportunity.

As Mazagon Dock Shipbuilders continues to grow and expand its market presence, investors and stakeholders will be keenly watching the company’s next moves. With the government reducing its stake and the company’s robust performance, Mazagon Dock is poised for a dynamic future in the stock market.