Anil Ambani-led Reliance Infrastructure will have to launch an open offer for Pipavav Defence and Offshore Engineering Company within 12 days from the issuance of approval by the Competition Commission of India and the Gujarat Maritime Board, said SEBI. The regulator has also instructed that the payment to all the successful public shareholders who tender their equity shares in the open offer should be made within 10 working days from the last date of the tendering period.
In an exchange filing, Reliance Infrastructure said that SEBI has given its observation on the firm’s ‘Draft Letter of Offer’.
On March 4, Reliance Infrastructure, jointly with its wholly-owned subsidiary Reliance Defence Systems (RDS), had announced the acquisition of 18 per cent stake in Pipavav Defence, which is engaged in manufacturing of commercial ships and repair of oil rigs, for a consideration of about ₹813 crore. This valued each equity share of the company at ₹63 apiece.
With the acquisition resulting in a change in management, RDS issued a public announcement to make a mandatory open offer to acquire 26 per cent stake at a price of ₹66 a share at a total acquisition cost of ₹1,263 crore.
“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. On Tuesday, Reliance Infra shares ended 2.54 per cent lower at ₹402.15 on the BSE, while Pipavav Defence slipped close to 1 per cent at ₹59.15 on the BSE.