Pipavav Defence gains 2 pc on news of foray into aviation business
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.
By PTI | Updated:
MUMBAI: Notwithstanding the bearishness in the broader market, shares of Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) surged by over 2 per cent 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 per cent to an early high of Rs 81.40 on the Bombay Stock Exchange and 2.19 per cent 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 per cent, and at Rs 80.10 on the NSE, up 0.38 per cent, 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 per cent equity in the project and has the option to increase it to 49 per cent, Pipavav said in a regulatory filing.
The filing added that a 51 per cent stake in the proposed JV will be held by Pipavav, while its promoter, SKIL Infra, will also hold some stake.
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 per cent to an early high of Rs 81.40 on the Bombay Stock Exchange and 2.19 per cent 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 per cent, and at Rs 80.10 on the NSE, up 0.38 per cent, 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 per cent equity in the project and has the option to increase it to 49 per cent, Pipavav said in a regulatory filing.
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The filing added that a 51 per cent stake in the proposed JV will be held by Pipavav, while its promoter, SKIL Infra, will also hold some stake.
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