Big-ticket Mazgaon order puts Pipavav in stable waters

On a day when one in seven stocks traded lower than the previous day’s close, Pipavav Shipyard surprised many with a 10.2 percent uptick. At 2.30 p.m. on Monday, the stock traded at Rs 90 on the National Stock Exchange.

News reports suggest that the counter is seeing a lot of activity as it has landed a huge order from Mazgaon Dock Shipyard.

The stock was earlier in the news after the company awarded warrants to the promoters and investor Rakesh Jhunjhunwala at a price of Rs 78 per share. Jhunjhunwala and his team were awarded 1,05,00,000 warrants while the promoters will get 1 crore shares at the same price. Pipavav management said the proceeds of the issue will be utilised for exploring opportunities in the defence segment.

Pipavav also made news for receiving orders from Indian Navy,amounting to Rs 2,975 crore, to design and construct five naval offshore petrol vessels (NOPVs). Pipivav is the only listed company to have received such an order.

In order to strengthen and focus its defence portfolio, the company has roped in foreign partners like the US-based Northrop Grumann and the UK-based Babcock Group to bolster its presence in the sector.

The company had earlier signed a protocol with a Russian government company, Rosoboron Export for Defence, for collaboration with other governments.