Pipavav gets shareholders' nod to raise Rs 1,100 cr

The company will issue securities to raise the amount

Pipavav Defence and Offshore Engineering Company today said it has got shareholders' nod to raise up to $200 million (about Rs 1,100 crore) to finance its growth plans for the defence sector.

In an extra-ordinary general meeting of the company, the shareholders gave approvals to raising funds up to $200 million by issue of securities, it said in a BSE filing.

The board gave approval for raising of funds on April 27.

Pipavav Defence and Offshore Engineering Company, which has "major growth plans" for expanding presence in the defence sector, had in the letter to the shareholders said the fund would be used to expand existing infrastructure or setting up of new facilities.

The private sector shipbuilder would use instruments such as Foreign Currency Convertible Bonds, Qualified Institutional Placement (QIP) or similar securities, which may be converted partially or even fully. Pipavav may list the securities on stock exchanges abroad or in India.

Meanwhile, Pipavav shareholders also approved raising the authorised capital to Rs 1,000 crore from Rs 800 crore now.

Pipavav's shares today settled at Rs 84.40 apiece at the BSE, up 0.54% over the previous closing.