Pipavav Defence gains 2% on news of foray into aviation biz
Shares of Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) surged by over 2% in morning trade on the bourses today after the company announced a foray into the aviation sector.
September 29, 2011 / 16:55 IST
Notwithstanding the bearishness in the broader market, shares of Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) surged by over 2% in morning trade on the bourses today after the company announced a foray into the aviation sector.
The company yesterday announced its foray into the aviation sector by signing a pact with Airbus to set up an aircraft maintenance facility in the country through a joint venture.Reacting to the news, the stock opened on a bullish note and then surged by 1.87% to an early high of Rs 81.40 on the Bombay Stock Exchange and 2.19% to Rs 81.55 on the National Stock Exchange.However, the stock saw some of the initial gains whittled down and was trading at Rs 80.10 on the BSE, up 0.25%, and at Rs 80.10 on the NSE, up 0.38%, at 1128 hours. The robustness in the counter was despite the fact that the broader market was trading in the negative zone.As per the MoU, European Aeronautic, Defence and Space Co (EADS), the makers of Airbus, will pick up 26% equity in the project and has the option to increase it to 49%, Pipavav said in a regulatory filing.The filing added that a 51% stake in the proposed JV will be held by Pipavav, while its promoter, SKIL Infra, will also hold some stake. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
