In the biggest deal in the defence sector in India, Reliance Infrastructure Limited announced the acquisition of Pipavav Defence and Offshore Engineering Company Limited. In a big strategic move, Reliance Infrastructure, along with its wholly owned subsidiary Reliance Defence Systems Private Limited, will acquire from the promoters of Pipavav Defence equity shares representing approximately 18 per cent shareholding in the company at a price of Rs. 63 per share, aggregating Rs. 819 crore.

Subsequent to the acquisition, Reliance Defence Systems is making an open offer to acquire 26 per cent shares from the public shareholders, at a price of Rs. 66 per share. The existing promoters of Pipavav Defence will retain a minority stake with two non-executive Board seats. Anil D. Ambani, Chairman, Reliance Group, will become Chairman of the Company.

Anil Ambani said “This is a unique opportunity for Reliance Group to participate in Prime Minister Narendra Modi’s ‘Make in India’ programme for the high growth defence sector.”

Nikhil Gandhi, the founder promoter and Chairman of Pipavav Defence and SKIL, stated, “I look forward to supporting Reliance to realise the goal of creating India’s foremost defence company, with an emphasis on the ‘Make in India’ programme initiated by the Prime Minister of India.”

In a brief interaction with SP’s M.A.I., Rajesh K. Dhingra, President, Reliance Defence & Aerospace said that Reliance Defence and Aerospace is pursuing the two helicopter programmes for Indian Army and Indian Navy for which they have submitted RFI responses. “We are also pursuing multiple ship and submarines building programmes along with opportunities in land systems and UAVs,” he further added.