Mazagon Dock Shipbuilders (MDL) has announced the signing of a Rs 1,990-crore contract with the Ministry of Defence for constructing an air-independent propulsion (AIP) plug and integrating it into conventional submarines.

The contract for the AIP plug construction and integration was awarded to Mazagon Dock Shipbuilders Limited in Mumbai for approximately Rs 1,990 crore.

These agreements are intended to improve the capabilities of the Indian Navy's submarines, especially the Kalvari-Class

The initial rally in the Mazagon Dock share was fuelled after the company secured a deal worth Rs 1,990 crore from the Ministry of Defence

Mazagon Dock Shipbuilders shares rose 4.6% following the signing of two major defense contracts worth Rs 2,867 crore. These contracts, aimed at enhancing the Indian Navy's submarine capabilities, include an AIP system integration and an EHWT system,

Mazagon Dock Shipbuilders share price remained in focus as the stock traded ex-split today. The record date for the sub-division or split of existing shares in the ratio of 5:1 is also December 27.

The Defence Ministry signed contracts worth Rs 1,990 crore with Mazagon Dock for the DRDO-AIP Plug and Rs 877 crore with Naval Group for enhancing Kalvari-class submarines.

The Ministry of Defence signed a second contract, worth ₹877 crore, with Naval Group of France. Shares of Mazagon Dock Shipbuilders Ltd ended at ₹2,266.25, down by ₹42.45, or 1.84%, on the BSE.