Shares of Mazagon Dock Shipbuilders were soaring on Friday after the Mumbai-based shipyard won a contract with the U.S. government for ship repairs.

What Happened: Mazagon Dock Shipbuilders said in an exchange filing after market hours on Thursday that it has officially inked a master ship repair agreement with the U.S. government, represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. While this agreement does not entail financial obligations, it holds significant strategic importance.

Only two shipyards in India, including Mazagon Dock Shipbuilders, have signed such an agreement, making it an exclusive collaboration. The signing of this agreement is anticipated to pave the way for voyage repairs of US Navy Ships at Mazagon Dock Shipyards.

See Also: How To Subscribe To The Second Tranche Of Sovereign Gold Bonds 2023?

Mazagon Dock Shipbuilders is a shipbuilding and offshore fabrication yard. The company’s major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.

Price Action: Mazagon Dock Shipbuilders’ share price surged 7.71% to ₹2,248.95 in early trade on Friday, reaching a record high. The stock also gained nearly 10% in Thursday’s session.

Read Next: KV Kamath Believes India To Be $25 Trillion Economy In 25 Years