Mazagon Dock Shipbuilder shares locked at 10% upper circuit; hit record high
₹1,588.75 apiece on the BSE, as the company is expected to get new orders for Scorpene submarines. The stock has surged nearly 23% in three sessions amid hopes of new defence orders.
Mazagon Dock shares have doubled this year so far and have jumped more than 505% in the last one year period. According to reports, the government is likely to have finalised the procurement of three additional Scorpene or Kalvari class submarines from France ahead of Prime Minister Narendra Modi’s visit to Paris this week. Also Read: PM Modi to ink deal with France to acquire 26 Rafale-M fighters, three attack submarines The Defence Procurement Board (DPB) of the Ministry of Defence has cleared the proposals which will be taken up soon by the Defence Acquisition Council (DAC) headed by Defence Minister Rajnath Singh, reports added.
The submarines will be built at Mazagon Dock Shipbuilders’ facility in collaboration with France-based Naval Group. Also Read: Tata Motors share price extends rally; becomes 16th most valued automaker in the world The contract value for these three submarines is expected to be around ₹20,000-22,000 crore.
Under Project 75, six Scorpene submarines have already been made in India. The French side and its partner Mazagon Dock are now looking at an additional order of three more Scorpene submarines, PTI reported quoting sources.
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