Pipavav Defence and Offshore Engineering Co. Ltd will sell a 5 per cent stake to an international strategic investor for nearly Rs. 900 crore, the company has said. The board has decided to issue 81.8 million equity shares to the investor, who wasn’t named. The investor will initially subscribe to 5 per cent of the company’s paidup capital and double that within a specified timeframe.

Pipavav Defence said in a release that the investor was “a leading and extremely reputed global conglomerate with strong interest in the defence sector”. The investor will bring in critical technology needed to manufacture complex equipment and systems for the armed forces. It will have the right to nominate a director on the board of Pipavav, the statement added.