Pipavav Defence hits 20% lower circuit

Pipavav Defence and Offshore Engineering Company has hit the lower circuit in the opening deals. The stock has hit the 20% lower circuit at Rs 55.

As per the news reports the income tax officials visited the company's premises for verification of certain issues. "There was no disruption of any kind at the production units and the business of the company was carried out as usual," the company said in a filing to the Bombay Stock Exchange (BSE) after the market hours yesterday.

Recently, the company had alloted issue of securities worth Rs 81.90 crore to ace investor Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala and his close associate Utpal Sheth.

The stock witnessed a gap down opening and a total of 738,000 shares have changed hands on the BSE compared to its two week average of 18 lakh shares. The are pending sell orders for over 2.6 million shares at the counter.