Sebi asks RInfra to launch open offer for Pipavav Defence in 12 days after nod

In March, RInfra's Reliance Defence said it would buy 18% in Pipavav Defence from promoter group at Rs 63 a share

Market regulator Sebi has asked Reliance Infrastructure to launch the open offer to acquire 26 per cent stake in Pipavav Defence within 12 working days of getting approvals from CCI and Gujarat Maritime Board.

In a BSE filing, Anil Ambani-led Reliance Infrastructure said Securities and Exchange Board of India (Sebi) has given its observation on the firm's "Draft Letter of Offer."

In the letter, Sebi "has advised that the tendering period for the Open Offer may commence not later than 12 working days from the date of the final order from the CCI and the final approval from the Gujarat Maritime Board, whichever is later..."

The filing further said,"... The payment to all successful public shareholders who tender their equity shares in the Open Offer, thereafter, may be made in the specified time frame of 10 working days from the last date of the tendering period subject to the Acquirer (Reliance Defence Systems) paying interest at the rate of 10 per cent per annum for the said delay."

Pipavav Defence is mainly into manufacturing of commercial ships and repair of oil rigs. Reliance Defence Systems, part of Reliance Infrastructure, is yet to start commercial operations.

"The revised schedule of activities for the Open Offer shall be notified in due course," the filing said.

JM Financial Institutional Securities is the manager to the Open Offer.



In March, Reliance Defence said it would purchase nearly 18 per cent stake in Pipavav Defence from promoter group led by Nikhil Gandhi at Rs 63 per share, amounting to Rs 819 crore and subsequently make an open offer for an additional 26 per cent at Rs 66 apiece, aggregating Rs 1,263.3 crore.

Earlier this month, anti-trust watchdog Competition Commission of India (CCI) approved Reliance Infrastructure's proposed acquisition of controlling stake in Pipavav Defence and Offshore Engineering in a Rs 2,000-crore deal.

Shares of Reliance Infrastructure were trading at Rs 400.30 apiece, down by 2.99 per cent in afternoon session at the BSE.

Pipavav Defence and Offshore Engineering was down 0.84 per cent at Rs 59.10 per share.