Pipavav ends 3% higher; bags $3-bn warship building project from Russia

NEW DELHI: Pipavav Defence & Offshore Engineering Ltd rose 8.07 per cent in trade on Thursday after the Russian government chose Anil Ambani's Pipavav shipyard for a 'Make in India' naval frigate order that is likely to exceed $3 billion.

The stock ended the day 3.49 per cent higher or Rs 2.10 at Rs 62.2.

It clocked volume of 15 lakh shares by 09:40 IST on BSE, up 841.69% compared to its average volume traded in the last 30 days.



Pipavav clocked volume of 59 lakh shares by 09:40 IST on NSE, up 833% compared to its average volume traded in the last 30 days.

The record deal is the first one landed by Pipavav after it was taken over by Anil Ambani's Reliance Group in March.

"The contract for the new frigates is likely to be in the form of a government-to-government order with Russia and could be signed this financial year with delivery expected over the next six to eight years," ET said in a report.

With public sector shipyards tied up in executing current orders and the Indian Navy battling to increase fleet strength, the government has been in advanced talks for the past several months with Russia for three to four upgraded Talwar class frigates, classified as Project 11356 vessels.

"Moscow, which has been keen to build the frigates at a Russian shipyard, was firmly told last year that the order would only be placed through the Make in India route but it would have the flexibility to choose an Indian partner for the project," added the ET report.