At 12.00 pm, the share price of Pipavav Defence was up 5.34 per cent at Rs 63.10. (Photo: Reuters)
Pipavav Defence share price jumped as much as 6 per cent on Tuesday after Reliance Infrastructure on Monday informed stock exchanges after market hours that it would begin the Rs 1,263 crore open offer to acquire additional 26 per cent stake in Pipavav Defence and Offshore Engineering Company on December 2.
At 12.01 pm, the share price of Pipavav Defence was up 5.34 per cent at Rs 63.10. The scrip opened at Rs 61.20 and had touched a high and low of Rs 63.50 and Rs 60.70, respectively, in trade so far. Sensex was marginally up 0.09 per cent at 25,782.58.
In March, the Anil Ambani group firm had announced plans to acquire controlling stake in Pipavav Defence for up to Rs 2,082 crore.
The open offer, to be made by Reliance Infrastructure along with its wholly-owned subsidiary Reliance Defence Systems Pvt Ltd, would open from December 2 till December 15, according to a regulatory filing.
Under the offer, they would acquire up to 19.14 crore shares from the public shareholders of Pipavav at a price of Rs 66 apiece. This would value the deal at Rs 1,263.32 crore. The offer price is at a premium of over 10 per cent compared to Pipavav’s closing price of Rs 59.90 apiece on the BSE on November 16.
“As per the agreement with the Promoters of Pipavav Defence, Reliance will acquire from them 13,00,00,000 equity shares representing approximately 18 per cent shareholding in the company at a price of Rs 63 per share, aggregating Rs 819 crore,” Reliance Infrastructure said in a statement.
(With inputs from PTI)
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