Mazagon Dock's Stock Surges 3% After Securing Rs 310-Crore Defense Deal

Shares of Mazagon Dock, a Mumbai-based shipyard and manufacturer, saw a jump of 3 per cent on Wednesday, October 18. The surge was largely attributed to the deal signed between the Indian Defence Ministry and the shipbuilder.

Earlier this week, Mazagon Dock Shipbuilders Ltd. secured a government contract worth Rs 310 crore for the construction of a training vessel designated for the Coast Guard. "This is the first dedicated training platform with integral helicopter capabilities that will provide basic sea training to 70 Coast Guard and other international under-trainee officers to prepare these budding mariners for the multi-dimensional maritime aspects of Coast Guard life," the Government statement said.

At 1:35 pm, the stock was trading flat with mild gains at Rs 2,157 price level, on the National Stock Exchange.

The defense ministry has outlined a project wherein the bulk of equipment and systems required will be procured from domestic manufacturers, with a special focus on Micro, Small, and Medium Enterprises (MSMEs). This initiative aims to create substantial employment opportunities within a span of three years. In addition to fulfilling the goals of 'Aatmanirbhar Bharat' (self-reliant India), the contract is expected to enhance the country's shipbuilding capabilities and contribute to the strengthening of its maritime economic potential, according to the official statement.

The defense ministry has outlined a project wherein the bulk of equipment and systems required will be procured from domestic manufacturers, with a special focus on Micro, Small, and Medium Enterprises (MSMEs).

On a year-to-date basis, Mazagon Dock have jumped nearly 173 per cent to Rs 2,157 in mid-October from Rs 788 during early January. The company specializes in the production of naval vessels, including warships and submarines commissioned by the Indian Navy.