Radhakishan Damani buys stake in Cochin Shipyard; stock rallies over 5%

Cochin Shipyard’s share price rallied over 5 percent on Friday after ace investor Radhakishan Damani bought half a percent (0.5 percent) equity stake in the company via an open-market transaction. The stock gained as much as 5.14 percent to trade at Rs 378 per share on the NSE. At 11:12 am, the shares traded about a percent higher quoting to Rs 362.85 apiece. In the last 6 months, the stock has gained about 45 percent to reach the current market levels.

According to the bulk deals data on NSE, Damani bought 6,94,646 equity shares in the company at Rs 349.14 apiece worth around Rs 27 crore.

It is interesting to note that Damani acquired a stake of the state-owned largest shipbuilding and maintenance company on the same day as the government amended licensing norms to boost local shipbuilding. The government also amended the right of first refusal condition for ship charter.

On October 9, the company earned the distinction of becoming the first company in the shipping sector to be certified by the Confederation of Indian Industries (CII) for the Green Co Silver rating.

It has now joined the handful of big companies like IOCL, HPCL, BPCL, ONGC, GAIL, Indian Railway (units at ICF) which have already been certified, it said in a release.

The company has an order book of Rs 14,000 crore and is currently ramping up its workforce to make up for the pandemic-triggered disruption. In its Kochi unit, it has increased the workforce by 1,200 to ramp up operations.