Shares of Mazagon Dock Shipbuilders (MDL) rose by 5% to reach a high of ₹4,065 on the BSE as the company engaged in discussions with the Ministry of Defence for a potential ₹35,000 crore deal. This deal involves the acquisition of additional Kalvari-class (Scorpene) submarines for the Indian Navy.
MDL has submitted a detailed techno-commercial bid for the contract, which promises at least 60% indigenous content in the new submarines. This means a significant portion of the work will be carried out by Indian sub-suppliers and the MSME sector.
By 10:33 AM, MDL shares were trading 5.10% higher at ₹4,176.85 on the NSE.
Government Grants Navratna Status to MDL
Mazagon Dock Shipbuilders also announced on Tuesday evening that the government had granted it “Navratna” status. In an exchange filing, the company stated, “The Department of Public Enterprises (DPE) has approved the proposal for the grant of Navratna status to Mazagon Dock Shipbuilders Limited.”
Navratna status is granted to premier public sector undertakings (PSUs), allowing them to execute investments of up to ₹1,000 crore without needing approval from the central authority. These firms can invest up to 30% of their net worth annually, provided it stays under ₹1,000 crore. Additionally, they have the option to participate in joint ventures, forge partnerships, and set up overseas subsidiaries.
