Pipavav Defence surges 13% on clarification over Russian defence deal

NEW DELHI: Shares of Pipavav Defence and Offshore Engineering continued to rally for the fourth session on the trot on Monday, gaining over 13 per cent in early trade. In a clarification to the bourses, the company said: "As part of the ongoing business development, including inter-alia Russian organisations, talks are on for multi-billion dollar contracts for building frigates and meeting other naval defence requirements for the country."

Reacting to the clarification, the scrip surged 13.71 per cent to hit a high of Rs 114 on the BSE. The stock has rallied more than 35 per cent in the past four trading sessions. Media reports suggested that Reliance Defence, which owns 44 per cent in Pipavav, has entered an agreement with a Russian defence company to construct four frigates for the Indian Navy. The deal is estimated to be worth Rs 60,000 crore.

These four 'Talwar class' frontline warships will be built at Reliance Group's recently-acquired Pipavav shipyard in Gujarat, an ET Report said. The total potential of the deal is Rs 60,000 crore over the next 10 years, reports in the media said.