Mazagon Dock Shipbuilders Limited (MDL) has announced key decisions following its Board of Directors meeting, including the declaration of an interim dividend and the approval of a stock split, aimed at enhancing liquidity and encouraging broader investor participation.
Key Highlights:
- Interim Dividend Declaration:
- The Board of Directors declared an interim dividend of ₹23.19 per equity share with a face value of ₹10 each for FY 2024-25.
- Record Date: The record date for the dividend payment is set for 30 October 2024, and the payment will be completed by 20 November 2024.
- Tax Deduction at Source (TDS) guidelines are available on the company’s website.
- Stock Split Approval:
- The Board also approved the sub-division (split) of equity shares. Each equity share with a face value of ₹10 will be split into two shares of ₹5 each, subject to shareholder approval.
- The rationale for the stock split includes encouraging wider participation by small investors and increasing liquidity of the shares in the market.
- Alteration of Capital Clause:
- The Board has approved the necessary alteration of the Capital Clause in the Memorandum of Association to reflect the stock split, pending shareholder approval.
- Post-split, the company’s authorized share capital will remain at ₹323.72 crore, but the number of equity shares will double to 64.74 crore.
These moves are aimed at complying with DIPAM Guidelines on Capital Restructuring and enhancing the accessibility of Mazagon Dock shares in the stock market.
The company will seek shareholder approval for the stock split via a postal ballot, with further details and voting instructions to be shared with shareholders who hold shares as of 25 October 2024.
