ABG Shipyard, L&T, Reliance Defence shares gain on infra status to shipyard industry

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New Delhi | Updated: May 03, 2016 10:11 AM

Shares of private shipyards players such as ABG Shipyard, Reliance Defence and Larsen & Toubro advanced in early trade on Monday after the government on Monday granted infrastructure status to the shipyard industry.

Shipyard industry, reliance defence, l&T shipyard stocksABG Shipyard shares were trading 4.17 per cent up at Rs 47.50 in the early deals (at 9.44 am). (Reuters)

Shares of private shipyards players such as ABG Shipyard, Reliance Defence and Larsen & Toubro advanced in early trade on Monday after the government on Monday granted infrastructure status to the shipyard industry.

ABG Shipyard shares were trading 4.17 per cent up at Rs 47.50 in the early deals (at 9.44 am). The scrip opened at Rs 47 and has touched a high and low of Rs 48 and Rs 47, respectively, in trade so far. Sensex was trading 0.89 per cent up at 25,663.73.

Reliance Defence was trading 5.08 per cent up at Rs 69.25 at the same time. The scrip opened the day at Rs 67.95 and has touched a high and low of Rs 70 and Rs 67.80, respectively, in trade so far.

Larsen & Toubro was trading 2.06 per cent up at 1,273.80. The scrip opened at Rs 1250.05 and has touched a high and low of Rs 1276.50 and Rs 1250.05, respectively, in trade so far.

Western India Shipyard was trading over 4 per cent up at Rs 2.43.

The infrastructure status would help shipyards avail cheaper financing. At present, companies pay average interest of 14-15 per cent on their borrowings.

The status is also expected to give a boost to government’s ‘Make in India’ initiative as cheaper finance will help Indian shipbuilders overcome, to a large extent, cost disadvantage on building ships.

(With agency inputs)

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