Shares of Pipavav Defence surged more than 7 percent in early deals today after the Economic Times reported the shipyard had won a Russian project to make several warships for the Indian Navy. The contract is estimated at $3 billion, making it among the biggest handed out by the government to the private sector.
Pipavav Defence rose 3.60 rupees, or 6 percent, to 63.75 rupees on the National Stock Exchange where 83.2 lakh shares were traded in the first 45 minutes of trade versus a 5-day average of 34 lakh shares.
Pipavav, where Anil Ambani controlled ADAG group recently purchased majority control, is India's biggest private sector ship building yard. This contract will help the company enter the big league among defence contractors internationally.
Russia will make the Talwar-class frigates for the Indian Navy locally under the Make In India scheme which is being aggressively pushed globally by Prime Minister Narendra Modi.
Pipavav Defence has seen its market capitalisation rise 25 percent to 4,690 crore rupees over the past six months.
(Image credit: Indiatimes)