Shares of Pipavav Defence surge over 5% on open offer

Mumbai: Shares of Pipavav Defence and Offshore Engineering Tuesday settled with gains of over 5 percent after Reliance Infrastructure said it will make an open offer to acquire an additional 26 percent in the company.

The Rs 1,263-crore open offer is scheduled to start on December 2.

The shares of the company, which surged 6 percent during the day ended the session at 62.95, up 5.09 percent over its previous closing price.

Following the uptick in the stock price, the market capitalisation of the company surged by Rs 224 crore to Rs 4,634.42 crore.

On NSE, the stock closed at Rs 62.95, registering a surge of 5.09 percent. During the day the stock had jumped 6 percent to Rs 63.50.

In March, the Anil Ambani group firm had announced plans to acquire a controlling stake in Pipavav Defence for up to Rs 2,082 crore.

Meanwhile, Reliance Infrastructure settled in negative territory down 0.38 percent at Rs 415.45 on BSE.

The open offer, to be made by Reliance Infrastructure along with its wholly-owned subsidiary Reliance Defence Systems Pvt Ltd, will stay open till December 15.

The company is looking to acquire up to 19.14 crore shares from public shareholders of Pipavav at a price of Rs 66. This values the deal at Rs 1,263.32 crore.