Pipavav Defence marginally up in volatile trade

MUMBAI: Shares of Pipavav Defence and Offshore Engineering Company on Thursday closed marginally higher at Rs 79.95 on the BSE in a volatile trade after the company announced foray into aviation sector.

The stock closed at Rs 80, up 0.25 per cent on the National Stock Exchange.

Earlier in the day the stock had surged 1.87 per cent on the BSE and over 2 per cent on the National Stock Exchange after the company announced a foray into the aviation sector.

The company (formerly Pipavav Shipyard) 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.

The stock was one of the few scrips that defied the broader market trend in morning trade, but soon gave way to profit booking and settled for the day at a price, which was just above its yesterday's closing price, market analysts said.

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.