The stock of Pipavav Shipyard on Monday jumped 4.29 per cent to Rs 76.55 on a day when the benchmark index was struggling. About 35 lakh shares of the company were traded on Monday as against the two-week average of about 17 lakh shares. The highest touched by the stock during the day was Rs. 77.80 and the low was Rs. 72.70. The scrip touched its 52-week low of Rs. 61.20 on August 22, 2011.
According to market rumours that ace investor Mr Rakesh Jhunjhunwala is likely to buy company shares through preferential allotment. However, company officials were not available for comments. The company board is meeting on Tuesday to consider the issue of convertible share warrants. Promoters is holding 45 per cent stake or 29.83 crore shares in the company, of which 99.6 per cent is being pledged with financial institutions. While foreign institutional investors hold 8.55 per cent stake in the company, domestic institutions stake stands at 11.56 per cent.