Description
Mazagon Dock Shipbuilders clarifies media reports about Rs 70,000 crore submarine talks, stating no negotiations have commenced despite bid qualification.
Summary
Mazagon Dock Shipbuilders Limited has clarified media reports about negotiations for a Rs 70,000 crore submarine project with Germany’s Thyssenkrupp. The company confirmed that while their bid for Project P75W was qualified and commercial bid opened in January 2025, no actual negotiations have commenced with Indian Navy/Ministry of Defense.
Key Points
- MDL’s bid for Project P75W was qualified for next stage on January 14, 2025
- Commercial bid was opened by empowered committee on January 16, 2025
- No negotiations have commenced with Indian Navy/MoD for the project thereafter
- Company states the news report about submarine talks is “factually incorrect”
- No undisclosed information exists that could explain recent stock price movement
- Stock had risen 4% on speculation about the submarine contract
Regulatory Changes
None specified in this circular.
Compliance Requirements
- Company has fulfilled disclosure obligations under SEBI LODR Regulation 30
- Provided required clarification on market speculation affecting stock price
Important Dates
- January 14, 2025: MDL bid qualification notification received from MoD
- January 16, 2025: Commercial bid opening by empowered committee
- August 25, 2025: Clarification issued to BSE
Impact Assessment
The clarification addresses market speculation that caused a 4% stock price rise. While MDL remains qualified for the significant defense project, the absence of active negotiations may temper investor expectations. The clarification provides transparency but may lead to short-term stock price adjustment as the market recalibrates expectations about the timeline for this major defense contract.
Impact Justification
Company clarification on significant defense contract speculation affecting stock price movement