Pipavav Defence to sell 10% stake to International Strategic Investor
Written by Vijay   
Wednesday, 23 November 2011
Mumbai: Pipavav Defence & Offshore Engineering Company Ltd has decided to issue 81.88 crore fully paid-up equity shares of face value of Rs. 10 each to an International Strategic Investor. 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 upto 10% of the paid-up capital of the Company.

The undisclosed 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. The Investor will have a right to nominate one director on the Board of the Company.

The issue will be made in one or more tranches, at a price not less than Rs, 110 per equity share or price to be determined pursuant to formula prescribed in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 20091 whichever is higher, subject to the approval of Members of the Company and other requisite approvals.

The company's board has also decided to increase the authorised capital by Rs 200 crore to Rs 1,000 crore.

The company successfully delivered "The Golden Suek", a 74,500 DVVT Panamax Bulk Carrier to Golden Sapphire Inc. nominated by Golden Ocean Group Ltd, a company headquartered in Norway. This is the largest dry bulk carrier ever built in India,

The company has reported a net profit of Rs 9.14 crore for the quarter ended September 30, 2011.

The company has raised funds from New York Life Investment Management India Fund, Trinity Capital and $40 million from Valiant. Rakesh Jhunjhunwala became a shareholder in September this year through a warrant issue.

Last Updated ( Wednesday, 23 November 2011 )
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