Pipavav Defence builds up

Pipavav Defence has zoomed up to the top gainers on the BSE. It is currently the second top gainer after Infosys. The stock is up 4% at Rs.65.50 with very good volumes at 2.3 lakh shares.

The stock had been deep in the red yesterday. But today morning the tides turned after the company announced in the morning that the Ministry of Defence (MoD) lifted the hold on Mazagon Dock Pipavav Defence Joint Venture (JV) to build the warships for Indian Navy. This means that the  JV can go ahead.

The company has stated that the JV implements its vision of executing the contracts without any time & cost overrun received through appropriate transparent mechanism. JV will also focus on working on other large and complex projects both meant for Indian Navy and friendly navies of the world. Government lifting of hold vindicates the vision and decision of MoD to form JV between Mazagon Dock Limited and Pipavav Defence in a completely transparent manner which will immensely benefit Indian Navy, Coast Guard and other clients.