Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) has alloted issue of securities worth Rs 81.90 crore to ace investor Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala and his close associate Utpal Sheth.
The securities amount to 10,500,000 warrants were alloted on November 14, the company said in a filing to the BSE today.
It added that Rakesh Jhunjhunwala and his wife have been alloted 5,000,000 warrants each, while Utpal Sheth will get 500,000 warrants.
Each warrant, issued at a price of Rs 78, is convertible into one fully paid-up equity share of Rs 10 each of the company at any time within 18 months from the date of allotment, the filing said.
Besides this, the company has also alloted 25,400,000 equity shares of Rs 10 each to Valiant Mauritius Partners FDI against conversion of equal number of convertible unsecured debentures issued to the Mauritius-based firm on May 19, 2010.
The allotment was done following a permission from Foreign Investment Promotion Board (FIPB) for conversion of the debentures into equity, the filing added.
The company had earlier said that proceeds from the issue of warrants will be used towards furthering opportunities in the defence sector and for general corporate purposes.
At present, the promoter group, including SKIL Infrastructure and SKIL Shipyard Holdings, holds 45% stake in Pipavav, or 29.83 crore shares in the company, of which 99.6% is being pledged with financial institutions.
Foreign institutional investors hold 8.55% stake in the company while domestic institution own 11.56%.
The Pipavav Defence and Offshore Engineering Company Ltd (PDOECL) has been recently in news, following a decision by Mazagaon Dock to form a joint venture committee with the former for construction of war ships and sub-marines among others.
Shares of the company today closed at Rs 79.95 per share on the BSE, down 2.68% from the previous close.
