Pipavav Defence surges 20% on reports of Reliance Defence inking Rs 60K crore deal
Reliance Defence, has entered into an agreement with a Russian defence co to construct four frigates for the Indian Navy.
By ET Online | Updated:
NEW DELHI: Shares of Pipavav Defence and Offshore Engineering surged 20 per cent in Thursday's trade to end the day at Rs 101.
Reports in the media suggested that Reliance Defence, which owns 44 per cent equity in the company, has entered an agreement with a Russian defence company to construct four frigates for the Indian Navy. The deal is 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, the reports said.
Reacting to the development, the stock hit an intraday high of Rs 100.25, surging 20 per cent on the BSE. The stock has erased all of its monthly losses in a strong upward move. Stock exchanges, though, have sought clarification from the company on the speculating media reports.
Reports in the media suggested that Reliance Defence, which owns 44 per cent equity in the company, has entered an agreement with a Russian defence company to construct four frigates for the Indian Navy. The deal is 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, the reports said.
Reacting to the development, the stock hit an intraday high of Rs 100.25, surging 20 per cent on the BSE. The stock has erased all of its monthly losses in a strong upward move. Stock exchanges, though, have sought clarification from the company on the speculating media reports.
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