Pipavav Defence surges 7% on Rs 5,000-cr investment plan
Shares of Pipavav Defence shot up nearly 7 per cent in Monday's trade in an otherwise weak market after the Anil Ambani-led ADAG announced setting up of a new naval shipbuilding facility with an initial investment of Rs 5,000 crore.
By ET Online | Updated:
NEW DELHI: Shares of Pipavav Defence shot up nearly 7 per cent in Monday's trade in an otherwise weak market after the Anil Ambani-led ADAG announced setting up of a new naval shipbuilding facility with an initial investment of Rs 5,000 crore.
Reliance Infrastructure, the Ambani firm, had bought 18 per cent stake in the company in March 2015. In December last year, the company bought another 17 per cent stake in Pipavav Defence, taking control of the management.
Shares of Pipavav Defence jumped 7 per cent to hit a high of Rs 88. Yet, the stock is down about 22 per cent from its 52-week high of Rs 114 it had hit on December 28, 2015.
The new facility, to be set up at Rambilli along the East Coast near Vizag, would also lead to creation of a multi-tier array of defence ancillaries with further investment of Rs 5,000-10,000 crore and thousands of skilled jobs, Ambani told PTI.
"It is estimated that Indian Navy will spend over Rs 3 lakh crore, or nearly Rs 20,000 crore a year, on acquisitions and fleet modernisation of submarines and aircraft carriers over next 15 years, creating a huge pipeline of opportunity for the proposed world-class naval facility," he said, adding that, "It would complement Reliance Group's existing facility at Pipavav in Gujarat and will have a clear focus on building strategic assets for the Indian Navy.
Shares of Reliance Infrastructure were trading rangebound. At 10 am, the scrip was ruling 0.69 per cent higher at Rs 585.70.
Reliance Infrastructure, the Ambani firm, had bought 18 per cent stake in the company in March 2015. In December last year, the company bought another 17 per cent stake in Pipavav Defence, taking control of the management.
Shares of Pipavav Defence jumped 7 per cent to hit a high of Rs 88. Yet, the stock is down about 22 per cent from its 52-week high of Rs 114 it had hit on December 28, 2015.
The new facility, to be set up at Rambilli along the East Coast near Vizag, would also lead to creation of a multi-tier array of defence ancillaries with further investment of Rs 5,000-10,000 crore and thousands of skilled jobs, Ambani told PTI.
"It is estimated that Indian Navy will spend over Rs 3 lakh crore, or nearly Rs 20,000 crore a year, on acquisitions and fleet modernisation of submarines and aircraft carriers over next 15 years, creating a huge pipeline of opportunity for the proposed world-class naval facility," he said, adding that, "It would complement Reliance Group's existing facility at Pipavav in Gujarat and will have a clear focus on building strategic assets for the Indian Navy.
Shares of Reliance Infrastructure were trading rangebound. At 10 am, the scrip was ruling 0.69 per cent higher at Rs 585.70.
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