Looking at options to raise long term funds: Pipavav Defence

NEW DELHI: Pipavav Defence and Offshore Engineering Co, on the subject of speculation over stake sale to companies like Mahindra and Hero Group, today said it is looking at raising long-term funds.

"The company is looking at various options to raise long term funds," Pipavav Defence and Offshore Engineering Co said in a filing to BSE, clarifying reports that Hero Motocorp promoters were likely to buy stake in the company.

It, however, did not clarify how the company was going to raise the long-term fund.

While stating that its does not comment on speculation, Pipavav said the company has not entered into any agreement that requires immediate disclosure under listing agreement.

Yesterday, Hero MotoCorp promoter Hero Group had sold 4 per cent stake in the company raising over Rs 1,800 crore to fund the group's foray into new segments.

Hero Group declined to comment further on its plans. Earlier, various reports had stated that Pipavav has begun talks with the Hero Group and French shipbuilder DCNS for selling a controlling stake.

Last week, Pipavav was linked to Mahindra by reports stating that the utility vehicle major was likely to purchase a stake for about Rs 3,000 crore. Pipavav had denied it saying "there are no negotiations/agreements which the company has entered into" that require disclosure.