Shares of Mazagon Dock Shipbuilders soared up in early trade on Thursday as the company announced signing an MoU with Thyssenkrupp Marine Systems.

What Happened: Reports about the two companies signing a memorandum of understanding to build submarines were officially confirmed on Wednesday. The government-controlled company in a regulatory filing said that it had signed a non-binding / non-financial agreement for cooperation and preparation for Submarine Project P75-I. Mazdock share price has surged over 27% in anticipation of this deal.

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As per the deal, Thyssenkrupp Marine Systems would contribute to the engineering and design of the submarines and provide consultancy support to this joint project. Mazagon Dock Shipbuilders Limited would take responsibility for constructing and delivering the respective submarines. The construction of the submarines would take place in India.

The ceremony took place in Mumbai, India in the presence of Boris Pistorius, the German Defence Minister.

Price Action: Mazdock’s share price was up 2.90% to trade at ₹1,059 at market open on Thursday.

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