Pipavav Defense likely to restructure Rs 7000 cr debt via CDR; stock up

MUMBAI: Shares of Pipavav Defense & Offshore rallied as much as 7.23 per cent in trade following reports that the company may take CDR route to restructure its debt of about Rs 7,000 crore.

The company has been struggling with debt due to economic slow-down in the past couple of years. It debt-equity ratio is expected to hit 2.26 by March end.

The company is in shipbuilding business and caters to defence sector as well. With the government focusing on ‘Make In India’ campaign, the company is likely to bag orders. The Modi government has so far cleared defence projects worth Rs 80,000 crore.

At 09:45 a.m.; the stock was at Rs 59.75, up 5.38 per cent, on the BSE. It rallied 7.23 per cent to touch intraday high of Rs 60.80 in early trade.