Pipavav Defence ropes in global strategic investor
22 Nov 2011
Stopped in the tracks on its joint venture with public sector defence shipyard Mazagon Docks Limited, Pipavav Shipyard has now found an overseas partner to accelerate its entry in the defence sector.
The board of directors of Pipavav Defence at its meeting today approved the issue of up to 81.88 million shares, at a price not less than Rs110 a share, to an international strategic investor, on a preferential basis.
The company, however, did not disclose the name of the investor. A stock market filing merely said the investor is a reputed global conglomerate with strong interest in the defence sector.
The company will issue 81,880,000 fully-paid equity shares of face value Rs10 each at a price of Rs110 per share or a price to be determined pursuant to a formula prescribed by the Securities and Exchange Board of India (Issue of capital and Disclosure Requirements) Regulations, 2009, whichever is higher, the company said in a filing with the Bombay Stock Exchange (BSE).
The issue will be subject to approval by shareholders and other requisite approvals, and may be in one ore more tranches, it added.
The issue is expected to fetch Pipavav Port a little over Rs900 crore.
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