Pipavav Defence rallies over 5% as RInfra initiates open offer process

NEW DELHI: Shares of Pipavav Defence and Offshore Engineering gained over 6 per cent after Reliance Infra announced that it would launch an open offer on December 2 to acquire an additional 26 per cent equity in the company for Rs 1,263 crore .

The development led to a 5.84 per cent surge in the scrip to Rs 62.40.

The open offer, to be made by Reliance Infrastructure along with its wholly-owned subsidiary Reliance Defence Systems, would open from December 2 till December 15, according to a regulatory filing, a PTI report said.

Anil Ambani-owened Reliance Infrastructure will acquire up to 19.14 crore shares from public shareholders of Pipavav at a price of Rs 66 apiece. This would value the deal at Rs 1,263.32 crore. The letter of acquisition would be sent to the target public shareholders on Tuesday, November 24.