Why Pipavav Defence Shares are Up 9%

Shares in Pipavav Defence and Offshore Engineering jumped over nine per cent to an intraday high of Rs 85 in morning trade on Thursday after a report suggested that promoters of Hero MotoCorp may buy stake in the company.

As per a report Pawan Munjal and Sunil Munjal, the promoters of Hero MotoCorp are in talks to buy 15-20 per cent stake in the company.

Munjals are reportedly in talks with private equity players to jointly bid for a stake in the company.

Shares in Pipavav Defence have gained over 55 per cent in last one month on the back of Prime minister Narendra Modi's push for making India a manufacturing hub for defence equipment.

Analysts say government's focus on domestic manufacturing of defence equipment may be a game changer for defence related companies.

Earlier there were reports that M&M is also in the race to buy stake in Pipavav Defence.

Shares in Pipavav Defence closed 3.28 per cent higher at Rs 80.30, outperforming the broader Nifty, which ended with 0.30 per cent gains.