RInfra buys additional 17% stake in Pipavav for Rs 850 crore

New Delhi: Anil Ambani-led Reliance Infrastructure has acquired an additional 17 percent stake in Pipavav Defence for an estimated Rs 850 crore through an open offer, taking its total holding to nearly 35 percent.

In a statement, Reliance Infrastructure today announced closing of the open offer period for the acquisition of Pipavav Defence and Offshore Engineering Co Ltd.

According to banking sources, Reliance Infrastructure has purchased an additional 17 percent stake in Pipavav Defence for an estimated Rs 850 crore.

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 percent.

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 percent to Rs 76 on BSE today.

"Upon completion of applicable formalities, Reliance Infrastructure will acquire sole management control of Pipavav Defence and the board of Pipavav will be reconstituted, together with the company being renamed Reliance Defence and Engineering Ltd," the statement said.

The payment for validly tendered shares, subject to scrutiny and processing, will be be completed by December 31, 2015.

The open offer -- for acquiring an additional 26 percent for up to Rs 1,263 crore -- was on from December 2 till December 15.

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 percent stake from Pipavav Defence's promoters for Rs 819 crore at a price of Rs 63 apiece.

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, post Reliance Infrastructure open offer.