Reliance Infrastructure Gains Leading Control of Pipavav

NEW DELHI - Dec. 22, 2015 - PRLog -- After acquiring Pipavav Defence to bolster its footprints in the defence sector, Reliance Infrastructure (RInfra), India’s leading private sector power utility and construction enterprise and a subsidiary of the Anil Ambani-led Reliance Group, has got its stake in the acquisition up to 35% to be the controlling stakeholder.

Though RInfra’s Rs 1,263-crore open offer for the acquisition of Pipavav Defence & Offshore Engineering Co (PDOC) remains largely under-subscribed as investors stayed off the open offer, investments in the company have continued to flow in.


The initial offer to acquire up to 26 per cent shares from the public shareholders of the Pipavav was at a price of Rs 66 per share in terms of applicable Securities and Exchange Board of India (Sebi) takeover regulations. Recently, Pipavav Defence also announced its plans to exit the corporate debt restructuring (CDR) package, post RInfra open offer.

RInfra spokesman said, “Upon completion of applicable formalities, RInfra will acquire sole management control of PDOC, and the Board of PDOC will be reconstituted, together with the company being renamed Reliance Defence and Engineering. The payment for validly tendered shares, subject to scrutiny and processing, will be completed by December 31, 2015.

Following the development, Pipavav closed at Rs 76.10, up 16.81 per cent on NSE, while RInfra at Rs 435-- up 2.8 per cent.

In March, RInfra together with its wholly-owned subsidiary Reliance Defence Systems Private Limited had agreed to acquire from the promoters of Pipavav Defence 13,00,00,000 equity shares representing 18 per cent shareholding in the company at a price of Rs 63 per share, aggregating Rs 819 crore.

Pipavav Defence was the first company in the country to obtain the contract and licence to build warships. The ship fabrication facility is spread over 2.1 million square feet. The shipyard has a pre-erection berth of 980 metres length and 40 metres width, and two cranes with a combined capacity of 1,200 tonnes.

Reference Link:-http://www.business-standard.com/article/companies/relian...

http://www.relianceada.com/ada/rinfra.html