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Nov 22, 2011, 03.45 PM IST
Pipavav Defence and Offshore Engineering Company will raise upto Rs 900 crore by issuing 8.19 crore shares on a preferential basis to a foreign strategic investor at Rs 110 a piece, said the company in a filing to the exchanges.
Pipavav Defence and Offshore Engineering Company will raise upto Rs 900 crore by issuing 8.19 crore shares on a preferential basis to a foreign strategic investor at Rs 110 a piece, said the company in a filing to the Exchanges.
Without divulging the name of the investor, the company said that the aforesaid investment will be a long term strategic investment in the company.
Shares of the company reacted to this news and surges almost 9% at Rs 61.50 at 11.00 hours.
“The investor will initially subscribe to 5% of the paid-up capital of the company and within specified time will increase its holding in the company up to 10% of the paid-up capital,” stated the company and further said that the investor is a leading and extremely reputed global conglomerate with strong interest in defence sector.
The investor will bring in critical technology required for manufacture of complex and critical equipments, systems required by armed forces i.e. Navy, Army and Air force.
The investor will also have a right to nominate one director on the Board of the company, the statement added.
Meanwhile, the board also okayed increase in the authorised share capital from Rs 800 crore to Rs 1,000 crore.
Last week, the company allotted warrants worth Rs 81.90 crore to Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala and his close associate Utpal Sheth. Each warrant, issued at a price of Rs78, is convertible into one fully paid-up equity share of Rs10 each of the company at any time within 18 months from the date of allotment.
At present, the promoter group, including SKIL Infrastructure and SKIL Shipyard Holdings, holds 45% stake in Pipavav, or 29.83 crore shares in the company, of which 99.6% is being pledged with financial institutions.
Foreign institutional investors hold 8.55% stake in the company while domestic institution own 11.56%.
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