Shares of Pipavav Defence today tanked 10 per cent and touched its lower circuit limit of Rs 68.85 on the bourses after Reliance Infrastructure announced it will buy 18 per cent stake from promoter group at Rs 63 per scrip.
Pursuant to the fall, the market capitalisation of the company declined by Rs 563.2 crore to Rs 5,068.78 crore. The Market capitalisation of the company stood at Rs 5,631.98 crore at the end of yesterday's trading session.
In the biggest deal in the defence sector, billionaire Anil Ambani-led Reliance Infrastructure today announced acquisition of controlling stake in Pipavav Defence and Offshore Engineering for up to Rs 2,082.3 crore.
Reliance Infra will buy 18 per cent stake from promoter group led by Nikhil Gandhi at Rs 63 per share, aggregating to Rs 819 crore.
According to market experts, the company settled for a lower-than-expected price for selling a majority a stake in the company to Anil Ambani promoted firm.
During today's trading session, the stock opened down 10 per cent and got stuck in lower circuit limit.
Meanwhile, the stock of Reliance Infrastructure, surged as much as 3.79 per cent to its intra-day high of Rs 492.90. The stock, however, lost some ground and settled for the day at Rs 489.75, up 3.13 per cent over previous closing price.
Accordingly, the market capitalisation of the company rose by Rs 390.55 crore to Rs 12,879.94 crore. The market capitalisation of the company stood at Rs 12489.39 crore at the end of yesterday's trading session.
