Pipavav allots 1.05 cr shares to Rakesh Jhunjhunwala, others

MUMBAI: Pipavav Defence and Offshore Engineering Company has alloted 1.05 crore shares to ace investor Rakesh Jhunjhunwala and his associates following conversion of 1.05 crore warrants, issued to them in November 2011.

"...the Securities Allotment and Transfer Committee of the Board of Directors of the Company at its meeting held on May 13, 2013 had allotted 1,05,00,000 fully paid-up equity shares...on conversion of convertible warrants to Rakesh Jhunjhunwala and others on receipt of balance consideration and requests for conversion," Pipavav said in a filing to the BSE.

Of the 1.05 crore warrants, Pipavav had allotted 50,00,000 (50 lakh) warrants each to Jhunjhunwala and his wife Rekha Jhunjhunwala, while 5,00,000 (5 lakh) warrants were issued to Utpal Sheth -- a close associate of Jhunjhunwala.

The warrants were alloted to them at a price of Rs 78 per share, which included a premium of Rs 68 a share. They were convertible within 18 months from the date of allotment and today was the last date to seek conversion.

Pipavav had garnered Rs 81.90 crore from issuing the warrants to Jhunjhunwalas.

Post conversion of warrants into shares, Jhunjhunwala and associates would have around 1.5 per cent stake in Pipavav.

As on March, 2013, Pipavav's promoter group, including SKIL Infrastructure and SKIL Shipyard Holdings, holds 45.63 per cent stake in the company or a little over 31.99 crore shares. Of this, 96.98 per cent shares are pledged with financial institutions.

LIC is the second largest shareholder in Pipavav with 8.34 per cent stake.

Last month, the Nikhil Gandhi-promoted company had said that it is in advanced stages of discussions with DCNS for a strategic partnership. This may include selling some stake to the French defence firm by Pipavav, one of the leading shipyards in the country.

Shares of the company closed today at Rs 69.60 apiece on the BSE, down 0.14 per cent from previous close.