Pipavav Defence falls from 52-week high on profit booking

Out of the shares pledged as security, IFCI and JM Financial Products have liquidated 12.5 million equity shares of the company,Pipavav Defence said.

Shares of Pipavav Defence and Offshore Engineering Company erased most of  its early gains and were trading marginally higher at Rs 78.50 on the back of heavy volumes.

The stock hit a low of Rs 75.80 so far, after hitting a fresh 52-week high of Rs 85 on NSE in early morning trade. Till 1302 hours, a combined nearly 37 million shares representing 5% of total equity of Pipavav Defence changed hands on the counter on NSE and BSE.

Pipavav Defence said that the lenders IFCI and JM Financial Products have collectively invoked 12.05 million or 1.64% pledge shares of the company.

“Out of the around 263 million shares pledged as security by the promoter- SKIL Infrastructure, JM Financial Products Limited and IFCI Limited have liquidated 1,20,00,000 and 50,000 (i.e. 1,20,50,000) equity shares of Pipavav Defence and Offshore Engineering Company Limited, respectively, in exercise of right under the facility agreement/loan agreement,” the company said in a BSE filing.

Post transaction, the total promoter holdings in Pipavav Defence has declined to 42.32% from 44.50% at the end of December 2014 quarter.

In past two-weeks, the stock had rallied more than 60% on reports that a leading business houses shown interest in picking up stake in Pipavav Defence.