Reliance Defence builds up

Reliance Defence is in the limelight today morning, going up at one point to Rs.61.40, up over 4%.

There was a news flash on a TV channel that Reliance Defence has won the bid to make 14 fast patrol vessels for the Indian Coast Guard.

The stock exchange sought a clarification for the same and the company was quick to respond, saying that it has emerged at the lowest bidder for this order. It has placed the size of the order at Rs.920 crore. The order is yet to happen unlike what has been reported and the company said that as and when it happens, it will keep the exchange informed.

Being the lowest bidder, the perception on the Street is that Reliance Defence will win the order and it is only a matter of time before this news breaks. But for now, the stock price, post the clarification has come off the days high point and is at Rs.60, up some 2%.