Pipavav Defence slumps 10% post Reliance Infra deal

Pipavav Defence, a private shipyard based in Pipavav Defence in Gujarat has plunged 10% at Rs 69 on the Bombay Stock Exchange as the proceeds of the all-cash deal would go to the promoters and not the company.

According to a Reliance Group release, Anil Ambani will take over as chairman of Pipavav Defence, with full management control.

Reliance Infrastructure will first invest Rs 819 crore for 17.66 per cent stake at Rs 63 a share from the promoters and, subsequently, launch an open offer for an additional 26 per cent stake at Rs 66 a share (Rs 1,266 crore).

Shares of Pipavav Defence have slipped 10% to Rs 69. Around 267,922 shares have changed hand on the BSE.

Reliance Infra surged 3.39% to Rs 491 on the BSE. Around 141,464 shares have changed hand on the BSE.