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Reliance Defence surges on inking contract with MOD for design, construction of fourteen FPVs

30 Jan 2017 Evaluate

Reliance Defence and Engineering is currently trading at Rs. 60.85, up by 3.60 points or 6.29% from its previous closing of Rs. 57.25 on the BSE.

The scrip opened at Rs. 58.60 and has touched a high and low of Rs. 61.90 and Rs. 58.15 respectively. So far 9,75,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 75.35 on 29-Jan-2016 and a 52 week low of Rs. 48.40 on 22-Nov-2016.

Last one week high and low of the scrip stood at Rs. 61.90 and Rs. 55.95 respectively. The current market cap of the company is Rs. 4,479.82 crore.

The promoters holding in the company stood at 29.90%, while Institutions and Non-Institutions held 14.31% and 55.76% respectively.

Reliance Infrastructure (RInfra) promoted Reliance Defence and Engineering (RDEL) has signed a Contract with Ministry of Defence (MOD), Government of India for design and construction of fourteen Fast Patrol Vessels (FPVs) for Indian Coast Guard, for an amount of Rs. 916 crore.  FPV’s are medium range, high-speed vessels; it is primarily utilized for patrol within Exclusive Economic Zone (EEZ), costal patrol, anti-smuggling, antipiracy, search & rescue operations. It also supports front line warships in the hour of need.

RDEL emerged winner through a competitive bidding process undertaken by MOD, Government of India with participation from almost all the Private Sector and Public Sector Shipyards. This is the first time, a Private Sector Shipyard has been awarded a contract to design and build such class of ships for Indian Armed Forces. RDEL will be developing the design in-house.


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