Reliance Acquires 17 PC Stake In Pipavav Defence

16 December, New Delhi

Anil Ambani-owned Reliance Infrastructure Wednesday said it has acquired an additional 17 per cent stake in Pipavav Defence for an estimated Rs 850 crore through an open offer, taking its total holding to nearly 35 per cent.

In a filing to Bombay Stock Exchange, the company announced closing of the open offer period for the acquisition of Pipavav Defence and Offshore Engineering Co Ltd.

The open offer was made by Reliance Infrastructure and its wholly-owned subsidiary, Reliance Defence Systems Pvt Ltd. Now, their holding in Pipavav has increased to nearly 35 per cent.The company did not disclose specific details about the open offer, citing regulatory obligations.

Soon after the announcement about the open offer by Reliance Infrastructure, shares of Pipavav Defence surged nearly 16 per cent.In March, the Anil Ambani group firm had announced plans to acquire a controlling stake in Pipavav Defence for up to Rs 2,082 crore.

The company has already acquired about 18 per cent stake from Pipavav Defence’s promoters for Rs 819 crore at a price of Rs 63 a piece.

The Competition Commission of India (CCI) and the Gujarat Maritime Board (GMB) have already approved the acquisition together with management control of Pipavav Defence.Last month, Pipavav Defence said it plans to exit the corporate debt restructuring (CDR) package.