Mazagon Dock gains up to 4% on plan to lease land parcel from Mumbai Port Authority for ₹354 crore
Upstox
2 min read • Updated: March 22, 2024, 1:14 PM
Summary
The land parcel adjacent to MDL Mumbai Yard will be taken on lease for 29 years from April 1, 2024, to March 31, 2053. The total allotment cost is ₹ 354 crore which include upfront lease premium, building cost and other charges.
Public sector company Mazagon Dock Shipbuilders Ltd shares rose nearly 4% on Friday, extending gains for the second day after the company announced taking on lease a land parcel from Mumbai Port Authority for ₹354 crore.
Mazagon Dock shares opened on a firm note and rallied further 3.75% to hit a high of ₹1,948.95 per share on the NSE. More than 7 lakh shares changed hands on the exchange while traded value was ₹142 crore.
Mazagon shares had gained around 2% on Thursday, rising by around 6% in two sessions.
Mazagon Dock Shipbuilders informed exchanges that the company has accepted Mumbai Port Authority’s offer for the allotment of land and building measuring 14.55 acres on a long term lease basis.
The land parcel adjacent to MDL Mumbai Yard will be taken on lease for 29 years from April 1, 2024, to March 31, 2053.
The total allotment cost is ₹ 354 crore which include upfront lease premium, building cost and other charges. The allotment cost will be paid to the Mumbai Port Authority.
Meanwhile, the company also announced that the Defence Ministry has informed the company about the ex-post facto approval for extension of additional charge of the Mazagon Dock CMD post, assigned to Sanjeev Singhal, Director (Finance), for a period of six months from February 1, 2024, or till the regular incumbent joins the post, or until further orders.
Mazagon Dock Shipbuilders, a public sector undertaking of the Defence Ministry, is a leading shipbuilding yard in India. The company builds vessels such as warships, from advanced destroyers to missile boats, submarines, cargo ships, passenger ships, supply vessels, and multipurpose support vessels among others.
The company since 1960 has built 802 vessels including 28 warships.
India’s only shipyard that built conventional submarines for the Indian Navy received orders of ₹6,000 crore in this fiscal.
Shares of Mazagon Dock Shipbuilders were trading 1.2% higher at ₹1,902.6 apiece on NSE at 13:14 pm.