Shares of Cochin Shipyard climbed as much as 2 per cent in the morning trade on Tuesday as CSL has incorporated a joint venture - Hooghly Cochin Shipyard, in which it will hold 74 per cent stake and Hooghly Dock & Port Engineers where it will hold 24 per cent.

Cochin Shipyard says the joint venture is for upgradation and modernisation of shipbuilding infrastructure at shipyard sites at Salkia and Nazirgunge in Kolkata. The Ministry of Shipping had approved the proposal for setting up the JV in March. Investors will closely monitor the development.

Shares of the public sector undertaking Rs 571.90 against the previous close of Rs 568.55, touched an intraday high of Rs 581 and a low of Rs 570.50 on the BSE.

At 12 noon local time, the shares were trading higher by 1.66 per cent at Rs Rs 578 on the BSE and up by 1.46 per cent at Rs Rs 578.50 on the NSE. In terms of equity volume, 0.57 lakh shares changed hands on the BSE.

"A joint venture company has been incorporated today in the name of Hooghly Cochin Shipyard Ltd.... Cochin Shipyard Ltd and Hooghly Dock & Port Engineers Ltd will have 76 per cent and 24 per cent stake in the company, respectively," Cochin Shipyard had said in a filing to the BSE yesterday.

The government in March this year had approved the formation of a joint venture company between Cochin Shipyard Ltd and Hooghly Dock & Port Engineers Ltd for upgradation and modernisation of shipbuilding infrastructure at the two shipyard sites of Salkia and Nazirgunge in Kolkata, CSL said.

Cochin Shipyard plans to build a Rs 100-crore facility on the Hooghly in Kolkata for construction of vessels for inland water transport.

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