Mazagon Dock shares hit a day high of Rs 2,288.60 after signing a major Maharashtra shipbuilding cluster deal worth Rs 27,500 crore.

The deal was inked on Tuesday evening. Mazagon Dock signed a Memorandum of Understanding with National Shipbuilding and Heavy Industries Park Maharashtra Ltd to act as the anchor shipyard for a new greenfield shipbuilding cluster coming up at Dighi in Raigad district.

Maharashtra Chief Minister Devendra Fadnavis was present when the papers were signed. Once built, the facility is expected to handle at least 1.2 million gross tonnes of shipbuilding capacity every year.

The broader project has in-principle approval for spending of around Rs 27,500 crore under the government’s shipbuilding mission, with Mazagon Dock’s own share of the investment pegged at close to Rs 15,000 crore.

Officials expect the project to create jobs for around 15,000 people directly and another 75,000 indirectly once operational. This isn’t the only recent win for the company.

Earlier this month, Mazagon Dock bagged a Rs 118 crore order from the Maharashtra State Electricity Transmission Company to supply and set up an AI-based security system across five substations, a project set for completion in 24 months.

Separately, reports on Wednesday morning suggested the Indian Navy has floated a Request for Proposal for seven stealth frigates worth close to Rs 70,000 crore, inviting bids from top-tier shipyards including Mazagon Dock.

Despite the strong start, the stock gave up most of its early gains as the session went on.

As of 9:45 am, Mazagon Dock shares are trading at Rs 2,209.10, down 1.20% or Rs 26.90 for the day. The stock has fallen close to 11% since the start of the year.

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