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Reliance Defence eligible to participate in defence projects, shares surge over 6 per cent

Reliance Defence and Engineering Ltd, the wholly owned subsidiary of Reliance Infrastructure, surged over 6 per cent on Friday after media reports said that the company can participate in Rs 3 lakh crore Indian Navy projects after Defence Acquisition Council cleared its capacity assessment.

By: | Updated: September 16, 2016 5:02 PM
Reliance Defence eligible to participate in defence projects, shares surge over 6 per cent Reliance Defence and Engineering Ltd, the wholly owned subsidiary of Reliance Infrastructure, surged over 6 per cent on Friday after media reports said that the company can participate in Rs 3 lakh crore Indian Navy projects after Defence Acquisition Council cleared its capacity assessment.

Reliance Defence and Engineering Ltd (RDEL), the wholly owned subsidiary of Reliance Infrastructure, surged over 6 per cent intraday on Friday after the company got a clearance from  Defence Ministry for defence projects. This made RDEL, known as Pipavav before Anil Ambani took over, eligible to participate in Rs 3 lakh crore Indian Navy projects. Defence Acquisition Council has cleared capacity assessment of Reliance Defence.”

At 1.21 pm, Reliance Defence scrip was trading 3.30 per cent up at Rs 57.90. The scrip opened at Rs 56.75 and touched a high and low of Rs 59.45 and Rs 56.15, respectively. Later, the scrip ended 2.23 per cent up at Rs 57.30.

The Defence Acquisition Council has rejected ABG Shipyard to participate in any defence project. The scrip of the company was trading 4.70 per cent down at Rs 30.40 in afternoon trade. It had opened at Rs 32.70 and touched a high and low of Rs 32.70 and Rs 30.05, respectively. Later, the scrip ended 4.86 per cent down at Rs 30.35.

Reliance Defence and Larsen and Toubro are the only 2 qualified private companies to participate in the Indian Navy project with the former being eligible for all defence projects particularly warships and submarines.

Reliance Defence and Engineering Ltd has posted net loss of Rs 134.50 crore for the first quarter of the financial year (FY) 2016-17 as compared to net loss of Rs 167.27 crore for the corresponding quarter of the FY 2015-16. Total income from operations of the company fell to Rs 70.34 crore in the Q1 of the current FY as against Rs 106.96 crore in the year-ago period.

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