New Delhi: The Securities and Exchange Board of India (Sebi) has asked Reliance Infrastructure to launch open offer to acquire a 26 per cent stake in Pipavav Defence within 12 working days of getting approvals from the Competition Commission of India (CCI) and Gujarat Maritime Board.
In a BSE filing, Anil Ambani-led Reliance Infrastructure said market regulator 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 a 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 CCI approved Reliance Infrastructure's proposed acquisition of controlling stake in Pipavav Defence and Offshore Engineering in a Rs 2,000-crore deal.
On Tuesday, Reliance Infrastructure shares ended 2.54 per cent lower at Rs 402.15 apiece on the BSE, while Pipavav Defence and Offshore Engineering stock settled down 0.76 per cent at Rs 59.15.
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