Pipavav Defence rallies 12% on stake sale buzz to M&M

M&M, on the other hand, rallied over 1% to Rs 1145 levels on the BSE

Pipavav Defence & Offshore Engineering has rallied over 12% on the Bombay Stock Exchange (BSE) to Rs 72 levels on reports that Anand Mahindra-controlled Mahindra & Mahindra (M&M) company is planning to buy 25 – 30% stake in the company.

“After a preferential share offer, the Mahindras and Gandhis (current promoters of Pipavav) were likely to hold equal stake and an open offer would be made to the shareholders of Pipavav Defence, said a banker. The Gandhi family owns a 45 per cent stake in the company,” a Business Standard report suggests.

“Apart from Mahindra, two other corporate majors, including Larsen & Toubro, which has a shipyard in Tamil Nadu, were in the race to buy a stake in the shipyard. However, the Mahindra group won the race due to its better offer and a promise to take the company to the next level,” it adds.

M&M, on the other hand, rallied over 1% to Rs 1145 levels on the BSE in opening moves.