Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) surged nearly 5 per cent on the bourses today after the company’s board approved the issue of securities worth Rs 81.90 crore to ace investor Rakesh Jhunjhunwala, his wife and a close associate.
The stock, which made a firm opening on the Bombay Stock Exchange, jumped further by 4.39 per cent to touch a high of Rs 80.70 in early trade. In a similar fashion, the stock went up 4.92 per cent to touch an early high of Rs 81 on the National Stock Exchange.
On Tuesday, the board has approved the issue of securities worth Rs 81.90 crore to Mr Rakesh Jhunjhunwala, his wife Ms Rekha Jhunjhunwala and his close associate Mr Utpal Sheth. The securities amount to 1,05,00,000 warrants.
Mr Jhunjhunwala and his wife would be allotted 50,00,000 warrants each, while Mr Sheth will get 5,00,000 warrants, the company has said in a filing to the Bombay Stock Exchange.
Besides this, the board also approved the issue of 1 crore warrants, worth Rs 78 crore, to its promoter Grevek Investments and Finance Pvt Ltd.