Pipavav says allots shares worth $36 million to Saab

REUTERS - Pipavav Defence and Offshore Engineering Company Ltd said on Monday it has allotted shares worth 2 billion rupees to Swedish defence and aerospace group Saab AB, as part of a pact to jointly explore opportunities in the Indian market.

Pipavav, which makes submarines and warships, said it has sold 24.5 million shares, representing about 3.4 percent of the company's existing share capital, to Saab, the company said in a statement to the Bombay Stock Exchange.

As part of the stake sale agreement, Pipavav and Saab will jointly explore business opportunities in the lucrative defence market of India, one of the world's top defence spenders that is looking to modernise its military.

 

(Reporting by Sumeet Chatterjee in MUMBAI; Editing by David Cowell)