Reliance Infra Buys 18% of Pipavav

MUMBAI: Anil Ambani-owned Reliance Infrastructure Ltd is buying 18% in Nikhil Gandhi-led Pipavav Defence and Offshore Engineering Company Ltd for `819 crore at a price of `63 per share from its promoters. Reliance Infrastructure plans to acquire another 26% by making a mandatory open offer to public shareholders of the company at a price of `66 per share. Reliance will also buy additional shares to ensure that its stake in the company is not less than 25.10%. Reliance Infrastructure is making the acquisition through a subsidiary Reliance Defence Systems Ltd.

Anil Ambani, chairman of the Reliance Group will be the chairman of the company. Shares of Pipavav Defence rose 4.65% to `76.50 per share.  “This is a unique opportunity for Reliance Group to participate in Prime Minister Narendra Modi’s “Make in India” programme for the high growth defence sector,’’ Anil Ambani said. “We are confident that our strategic investment will create long term value for all stakeholders.’’ Pipavav said it has technological tie-ups with global defence leaders including Saab of Sweden, Dcns of France, Sembcorp Marine of Singapore, JSC Zvyozdochka of Russia and Rosoboron Export of Russia.