Pipavav To Become Top Defence Manufacturer: Anil Ambani

In case the open offer fails, Reliance Infra will acquire additional shares from promoters to ensure its shareholding is not less than 25.10 percent. Promoters at present hold 44.50 per cent stake in Pipavav Defence, which is reportedly looking at debt recast. The Anil Ambani Group, which has announced foray into defence manufacturing, will buy 13 crore equity shares from promoters together with sole management control.

The acquisition would be done by Reliance Infrastructure, together with its wholly-owned subsidiary Reliance Defence Systems Pvt Ltd. Pursuant to the buyout resulting in a change in management and control of Pipavav, Reliance Defence Systems Ltd, a subsidiary of Reliance Infrastructure, made an open offer to acquire 26 per cent from public shareholders of the company at 66 per share. Post the transaction, the existing promoters of Pipavav Defence will continue to retain a minority stake in the company, together with two non-executive Board seats.

The transaction is subject to certain conditions precedent and various statutory approvals. Commenting on the transaction, Ambani has said, "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."

Pipavav Defence stock price

Pipavav Defence and Offshore Engineering Company closed at 63.85, down 5, or 7.26 percent. The 52-week high of the share was 85.00 and the 52-week low was 34.65.

The latest book value of the company is 31.74 per share. At current value, the price-to-book value of the company was 2.01.
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