Shares of Pipavav Defence and Offshore Engineering Company rose 3.5 per cent today amid reports that Russia has selected the company to make frigates for the Indian Navy.
The stock gained 3.49 per cent to settle at Rs 62.20 on the BSE. During the day, it surged 8 per cent to Rs 64.95.
At the NSE, shares of the company settled 3.57 per cent higher at Rs 62.30.
The company's market value rose by Rs 155.2 crore to Rs 4,579.20 crore.
On the volume front, 28.26 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
"Shares of Pipavav Defence & Offshore Engineering were up more than 8 per cent intra-day after market reports said that it has bagged an order from the Russian government for a 'Make in India' naval frigate," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.
As per media reports, the Russian government chose Pipavav shipyard for a 'Make in India' naval frigate order that is likely to exceed USD 3 billion.
Meanwhile, in a clarification to media report, the company in a filing to BSE said, "As part of the ongoing business development efforts, we are in negotiations with potential global customers, including inter alia organisations owned by the Russian government, for multi-billion dollar contracts to build warships, frigates, etc."
Appropriate disclosures will be made as and when final agreements are signed, resulting in a reportable event, the filing added.
