Shares of Mazagon Dock Shipbuilders were in focus on March 5, rising over 3% in early trade, after reports suggested that the Indian Navy is close to finalising a major submarine acquisition programme involving the state-run defence shipyard.
The stock was trading around ₹2,237.20, up about 3.32% from the previous close of ₹2,165.40, after opening the session at ₹2,179.90 and touching an intraday high of ₹2,254.50.
According to reports, the Indian Navy is poised to finalise a deal worth around ₹99,000 crore for six advanced submarines from Germany’s Thyssenkrupp Marine Systems. The submarines are expected to be constructed in Mumbai by Mazagon Dock Shipbuilders, strengthening India’s domestic defence manufacturing capabilities.
The potential contract is significant in size, particularly when compared to Mazagon Dock’s current market capitalisation, which stands at around ₹89,000 crore, slightly below the estimated value of the proposed deal.
Market participants said that if the project moves forward, it could represent one of the largest defence manufacturing contracts for the company, providing long-term order visibility and strengthening its position within India’s naval shipbuilding ecosystem.
Mazagon Dock is already a key defence shipbuilder for the Indian Navy and has executed several strategic projects in the past, including warships and submarines built under indigenous programmes.
The reports have also reinforced broader investor optimism around India’s defence sector, where expectations of higher defence spending and stronger order inflows have continued to support stock performance across several listed defence companies.