Reliance Infra acquires Pipavav for up to Rs 2,082 crore

Discussion in 'Economy & Infrastructure' started by anoop_mig25, Mar 5, 2015.

  1. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Reliance Infra acquires Pipavav for up to Rs 2,082 crore

    By ET Bureau | 5 Mar, 2015,

    MUMBAI: Reliance Infrastructure (RInfra) has agreed to purchase 18% stake from the promoters of debt-laden Pipavav DefenceBSE -10.00 % and Offshore Engineering (PDOE), Nikhil and Bhavesh Gandhi, at Rs 63 per share, implying a valuation of Rs 819 crore, marking the Anil Amabanihelmed company's entry into the defence sector, which has emerged as the centerpiece of Prime Minister Narandra Modi's 'Make in India' programme.

    Reliance Infrastructure trumped Mahindra & Mahindra and the Hero group which were also in the running for Pipavav.

    Reliance Defence Systems, a subsidiary of Reliance Infrastructure, will also make an open offer to acquire another 26% for Rs 66 per share, Reliance Infra said in a press statement. If the open offer is successful, the Reliance Group will have to fork out Rs 1,263 crore for a 26% stake, taking the total acquisition cost to Rs 2,082 crore. As per the agreement with the promoters, Reliance will also acquire from them additional equity shares at Rs 63 per share to ensure that Reliance's shareholdi is not less than 25.10%, according to the press release. Anil D Ambani, chairman, Reliance Group, will become the chairman of the company, which will be renamed Reliance Defence.

    The Gandhis are known for building large infrastructure projects and selling them off while retaining a minority stake. In early 2000, they built one of India's largest special economic zones on the outskirts of Mumbai jointly with the state development agency and later sold it to Reliance Industries.

    So friends is good news or bad news

    I think bad since reliance is involved and that to Anil
     
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  3. sgarg

    sgarg Senior Member Senior Member

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    Good news. Pipapav has high debt. Shipbuilding is a tough business. Shipbuilding works for very large corporations only, specially when dealing with government.

    This will give stability to Pipapav and in turn the shipyard can take on larger projects like frigates and submarines.
     
  4. sgarg

    sgarg Senior Member Senior Member

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    Anil Ambani is a good guy - simple straightforward. Mukesh is the sly one.
     
  5. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Anil ambani lead reliance is too in high debt
     
  6. sorcerer

    sorcerer Senior Member Senior Member

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    Reliace is bad news..
     
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  7. blueblood

    blueblood Senior Member Senior Member

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    Not necessarily. Anil Ambani is far more influential in the govt. and political circles than Nikhil Gandhi will ever be. This might help MOD to shed it's license raj mentality and Pipavav could get some big orders.
     
  8. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Pipavav should get orders on its strength that its capacity and technological expertise to complete its order and not because some X,Y,Z has good political link
     
  9. blueblood

    blueblood Senior Member Senior Member

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    Dude, do we really have to do this?

    Private vs Govt, pick your side. Technological expertise gained at the expense of tax payers over decades and still nothing to show for except delays vs merit and hard work based private industry.

    If you don't wanna go off topic, ignore this post, I will ask mods to delete it.
     
  10. sayareakd

    sayareakd Moderator Moderator

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    They should get Arjun tank factory from OFB. Arjun needs Ambani.
     
  11. sorcerer

    sorcerer Senior Member Senior Member

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    Iam okay with an Indian company taking over a vital installation to make it professional and increase productivity..If it was TATA I wouldnt care...but with Reliance..it gives me the Heebie-jeebies.
     
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  12. blueblood

    blueblood Senior Member Senior Member

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    I somewhat agree with you. But there's a saying in Hindi "Chit bhi meri patt bhi meri aur khada mere baap ka". It just doesn't happen. We should understand the difference between "needs" and "wants".

    Professional upper and middle management backed by a big bank account of a greedy industrialist is what we are getting and we should be content with it, IMHO.

    Indian designed frontline warships are designed by IN itself, so apart from the morons at MOD nobody will have a problem with private sector getting larger and better orders. IN would be very happy if they can get things done on time and in budget something which is impossible at govt. shipyards.
     
  13. debasree

    debasree Regular Member

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    I think the dcn of France and pipav now will get the lpds order I mean the mistral for in
     
  14. blueblood

    blueblood Senior Member Senior Member

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    Pipavav to become top defence manufacturer: Anil Ambani

    Within days of acquiring controlling stake in Pipavav Defence and Offshore Engineering , Reliance Group chief Anil Ambani today said he will make it the country's biggest defence manufacturer. Addressing about 4,000 Pipavav Defence and Offshore Engineering workers during his maiden visit to the facility in Gujarat, he said he will "leave no stones unturned to make it India's largest defence manufacturing company". Ambani along with top officials of the group also met Nikhil Gandhi of Pipavav Group at Pipavav, about 300 km from here.

    Read more at: Pipavav to become top defence manufacturer: Anil Ambani - Moneycontrol.com
     
  15. blueblood

    blueblood Senior Member Senior Member

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    Narendra Modi govt shortlists Larsen & Toubro, Pipavav for Rs 60,000 cr submarine contract

    The government has shortlisted Larsen & Toubro (L&T) and Pipavav Defence & Offshore Engineering Company, in which the Anil Ambani group firm Reliance Infrastructure has recently acquired management control, for award of a Rs 60,000-crore contract to build six conventional submarines under its Project 75i.

    According to highly-placed sources, a high-level committee headed by vice-admiral Subhedar, which had inspected both public and private shipyards to shortlist candidates to issue the request for qualification (RFQ) for Project 75i, in its final presentation to the ministry of defence (MoD) last week, selected the two private sector shipyards — L&T’s Katupalli yard and Pipavav unit.

    Narendra Modi govt shortlists Larsen & Toubro, Pipavav for Rs 60,000 cr submarine contract | The Financial Express
     
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