Pipavav Defence shares up 6% on Reliance Infra's open offer to acquire additional 26% stake

Shares of Pipavav Defence and Offshore Engineering on Tuesday surged over 6% in morning trade after Reliance Infrastructure said it will make an open offer to acquire an additional 26% in the company. The Rs 1,263-crore open offer is scheduled to start on December 2.

Reacting to the development, shares of Pipavav Defence and Offshore Engineering opened on a bullish note at Rs 61.21 and jumped 6.01% to hit an early high of Rs 63.50 on BSE.

A similar movement was seen on NSE as well, where the stock opened at Rs 61.20 and surged 6.01% to an early high of Rs 63.50.

In March, the Anil Ambani group firm had announced plans to acquire a controlling stake in Pipavav Defence for up to Rs 2,082 crore.

Meanwhile, Reliance Infrastructure dropped 2.22% to an intra-day low of Rs 422 on BSE. 

The open offer, to be made by Reliance Infrastructure along with its wholly-owned subsidiary Reliance Defence Systems Pvt Ltd, will stay open till December 15.

Under the offer, the company is looking to acquire up to 19.14 crore shares from public shareholders of Pipavav at a price of Rs 66. This values the deal at Rs 1,263.32 crore.