Mazagon Dock shares jump 6% day after ₹1,070 crore deal with Defence ministry

On Wednesday, the ministry of defence signed a ₹1,070 crore deal with Mazagon Dock for the procurement of 14 fast patrol vessels for the Indian Coast Guard.

Published on: Jan 25, 2024, 12:16:02 IST

By HT News Desk

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The shares of Mazagon Dock Shipbuilders have surged by more than two per cent a day after the Ministry of Defence inked a ₹1,070 crore contract for the procurement of 14 fast patrol vessels for the Indian Coast Guard.

On the Bombay Stock Exchange (BSE), the Mazagon Dock shares had opened in green from the previous close of ₹2,325. In the early trade, the shares were trading at ₹2,421. The shares later jumped by 6.4 per cent to trade a day high of ₹2,475. According to latest data at 12 pm, the shares were priced at ₹2376.65. The market cap of the company stood at ₹48,031 crore on the BSE.

This comes on the day the stock market declined in early trade. Sensex dropped by 227.72 points to open at 70,832.59. The NSE index Nifty dipped 55.7 points to 21,398.25.

On Wednesday, the ministry of defence signed a ₹1,070 crore deal with Mazagon Dock Shipbuilders Ltd for the procurement of the 14 fast patrol vessels for the Indian Coast Guard.

The stock market index on a display screen at the Bombay Stock Exchange (BSE) building in Mumbai. (PTI)

The fast patrol vessels will be indigenously designed, developed and manufactured by the company and will be delivered in 63 months.

"The Ministry of Defence has signed a contract with MDL Mumbai on January 24 for acquisition of 14 Fast Patrol Vessels (FPVs) for the Indian Coast Guard. The value of the contract is ₹1,070 crore," the ministry said in a statement.

"Along with several high-tech advanced features and equipment, these FPVs will be equipped with multipurpose drones, wirelessly-controlled remote water rescue craft lifebuoy and AI capability," it said.

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