Shares of Mazagon Dock Shipbuilders Ltd jumped by almost 6.5% on Thursday, a day after the shipbuilding company announced that it had inked a Rs 1,070 crore contract with the Ministry of Defence to deliver 14 fast patrol vessels to the Indian Coast Guard.

Mazagon Dock’s shares hit an intraday high of Rs 2,477.70, 6.49% higher than its previous closing price on the National Stock Exchange (NSE). At 1:50 pm, the stock was trading 2.04% higher at Rs 2,374.00. 

Mazagon Dock Shipbuilders informed the exchanges on Wednesday that it has signed a contract worth Rs 1,070 crore with the Acquisition wing of the Ministry of Defence for the construction and delivery of Fourteen Fast Patrol ‘Vessels (FPVs) for the Indian Coast Guard (ICG).  

The contract involves the designing, building and delivery of the FPVs by the company. As per the contract, the delivery of the first vessel is to be executed within 24 months from the date of advance payment being released by the buyer to the seller and delivery of subsequent vessels at intervals of 3 months.

The FPVs will be equipped with multipurpose drones, wirelessly controlled remote water rescue craft lifebuoy, AI capability, and several advanced high-tech features and equipment.