Mazagon Dock shares rally over 6% after bagging Navratna status
Mazagon Dock Shipbuilders surged 6.5% today in early trade to a fresh 52-week high of Rs 4,269.75 on BSE as the company announced that it has been granted 'Navratna' status.
“This is to inform that Department of Public Enterprises (DPE) vide its letter dated 25" June 2024 has approved the proposal for grant of Navratna status to Mazagon Dock Shipbuilders Limited,” the company informed the stock exchanges.
A Navratna company plays a significant role in the nation's economy and holds a prestigious position compared to other PSUs, both domestically and globally.
Now designated as Navratna, Mazagon Dock will be granted authority in areas such as capital expenditure, investment in joint ventures or subsidiaries and human resources management.
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As a Navratna company, the defence major will now be able to invest up to Rs 1,000 crore or 15% of their net worth in a single project without needing government approval. Additionally, the company can also engage in joint ventures, form alliances and establish subsidiaries overseas.
Earlier this week, the company's shares surged as the company is in advanced discussions with the Ministry of Defence for a potential Rs 35,000 crore deal for acquiring additional Kalvari-class (Scorpene) submarines for the Navy.
With the new coalition government now in place and the expectations of stable policies, the defence stocks are currently on their rising spree.
Mazagon Dock’s shares have been performing
