Pipavav zooms on defence nod

Pipavav Shipyard is in the limelight today morning. The stock opened Rs.2 higher at Rs.43.05, its current high point of the day and this was the 5% upper circuit. Volumes spiked up over four times on opening itself.

The stock has hit the roof after the Govt, on Saturday, cleared a proposal to build six Stealth submarines, each carrying a price tag of Rs.50,000 to Rs.60,000 crore. This is great news for companies like Pipavav, which can now look forward to building subs, in collaboration with various MNCs that they have been holding talks with, for technology transfer. Also Pipavav stands to gain given the availability of its large and operational dry docks.

Pipavav has a JV with Mazagon Dock to build warships for the Indian Navy. The JV, known as Mazagon Dock Pipavav has already started implementing part of the existing orders of Mazagon Dock of Rs 1,00,000 crore.