MAZDOCK

The shares of Mazagon Dock Shipbuilders dropped over 2 percent on June 30 as investors cheered news around the defence company's first international acquisition. The shares of the company were trading at Rs 3,246 apiece in the afternoon. In an exchange filing released on June 27, Mazagon Dock Shipbuilders had said that its board has approved the acquisition of a controlling stake in Colombo Dockyard, Sri Lanka, for an investment of up to Rs 452 crore. The proposed acquisition will be done through primary subscription and secondary acquisitions from the shareholders of the Columbo Stock Exchange-listed company. The secondary acquisition will see Mazagon buying some stake from Japan's Onomichi Dockyard. The company said it has already executed definitive documents outlining the terms and conditions of the proposed agreement with Colombo Dockyard and Onomichi Dockyard. Following the said acquisition, Colombo Dockyard will become a subsidiary of the Indian company. Mazagon Dock Shipbuilders took to X to share pictures of its executives arriving at the said agreement with the foreign companies. "This marks MDL’s first international acquisition. Located in the Port of Colombo, CDPLC gives MDL a strategic foothold in the Indian Ocean Region—a key maritime corridor. With this, MDL begins its transformation from a domestic shipbuilder to a regional maritime player with global ambitions," the company wrote.