Pipavav Defence surges 10% on plan to build submarines

Moneycontrol Bureau

Shares of Pipavav Defence and Offshore Engineering, previously known as Pipavav Shipyard, surged slightly over 10% on Monday after the company announced its plans to build submarines and warships, reports CNBC-TV18.
Speaking at a press conference, chairman Nikhil Gandhi said the company will form a joint venture (JV) with Mazgaon Dock for defence orders. "The JV company will be called Mazgaon Dock-Pipavav Limited," he informed.
The JV will help Mazgaon Dock execute USD 27 billion defence orders, Gandhi said. Mazgaon Dock handles defense orders of Government of India.
"The company has invested over USD 1 billion to build warships," he added.
At 14:43 hrs shares of Pipavav Defence were quoting at Rs 90.00, up Rs 8.25, or 10.09%.
It was trading with volumes of 15,258,390 shares, compared to its 5-day average of 2,660,815 shares, an increase of 473.45%.
The stock is likely breach the three-digit mark ahead, believes investment advisor SP Tulsian.
"The share may trade around Rs 90 for four or six months. But if somebody wants to take a long-term view of two-three years, then obviously, there is good upside potential," he said adding, "However, at least for next two-three months, I will be expecting a price of around Rs 100." Sagar.Salvi
sagar.salvi@network18online.com