Cochin Shipyard share price jumped over 7% in early trade on Tuesday after the company was declared L1 bidder by the Ministry of Defense for the construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The PSU defense stock surged as much as 7.27% to ₹1,575.00 apiece on the BSE.
The rally in Cochin Shipyard share price today comes after four consecutive sessions of losses. The gains in the PSU defense stock were also supported by strong trading volumes.
Around 17 lakh equity shares of Cochin Shipyard changed hands on stock exchanges on February 17, significantly higher than its one week average trading volume of 5 lakh shares, and one month average volumes of 10 lakh shares.
Cochin Shipyard said that the Ministry of Defense has declared the company as L1 in the tender floated by the Ministry of Defense for construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The estimated total order value is around ₹5,000 crores.
“The final announcement of the contract will be subject to the satisfactory completion of necessary formalities in this regard, which will be updated in due course,” Cochin Shipyard said in a regulatory filing on February 16.
At 9:25 AM, Cochin Shipyard share price was trading 5.88% higher at ₹1,554.55 a piece on the BSE.
