Pipavav Defence and Offshore Engineering Company rose 5.66% to Rs 63.50 at 13:02 IST on BSE on media reports that the Russian government has chosen Pipavav Shipyard for a 'Make in India' naval frigate.
Meanwhile, the BSE Sensex was up 159.83 points, or 0.57%, to 28,358.12.
On BSE, so far 22.39 lakh shares were traded in the counter, compared with an average volume of 2.07 lakh shares in the past one quarter.
The stock hit a high of Rs 64.95 and a low of Rs 62.95 so far during the day. The stock hit a 52-week high of Rs 85 on 19 February 2015. The stock hit a 52-week low of Rs 34.40 on 1 December 2014.
The stock had underperformed the market over the past one month till 15 July 2015, rising 0.67% compared with 6.06% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 2.04% as against Sensex's 2.09% fall.
The mid-cap company has an equity capital of Rs 736.21 crore. Face value per share is Rs 10.
According to reports, the Russian government has chosen Anil Ambani's Pipavav shipyard for a 'Make in India' naval frigate order that is likely to exceed $3 billion, making it the private sector's biggest-ever warship-building project.
The stock exchange sought clarification from Pipavav Defence and Offshore Engineering Company during trading hours today, 16 July 2015, but no reply was received so far.
Reports added that the record deal is the first deal landed by Pipavav post takeover by Reliance Infrastructure. The contract for the new frigates is likely to be in the form of a government-to-goverment order with Russia. The deal could be signed in this financial year and delivery is expected over the next 6-8 years.
In March 2015, Anil Ambani-controlled Reliance Infrastructure announced the acquisition of 18% stake in Pipavav Defence at Rs 819 crore, gaining management control. Reliance Infrastructure agreed to acquire 13 crore equity shares of Pipavav Defence at Rs 63 each. Reliance Defence Systems, a subsidiary of Reliance Infrastructure, later made an open offer to acquire another 26% in Pipavav Defence for Rs 66 per share.
Pipavav Defence & Offshore Engineering Company reported net loss of Rs 236.05 crore in Q4 March 2015 as against net profit of Rs 1.31 crore in Q4 March 2014. Net sales declined 89.01% to Rs 49.36 crore in Q4 March 2015 over Q4 March 2014.
Pipavav Defence and Offshore Engineering Company is an integrated defence, heavy engineering and offshore oil & gas assets' construction company.
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