Pipavav Defence issues preferential shares to international strategic investor

MUMBAI, November 22: Pipavav Defence and Offshore Engineering Company Limited has successfully delivered “The Golden Suek”, one no. 74,500 DWT Panamax Bulk Carrier toGOLDEN SAPPHIRE INC. nominated by GOLDEN OCEAN GROUP LTD., a company headquartered in Norway.

This is the largest dry bulk carrier ever built in India, Pipavav Defence said in its communique to BSE..

Pipavav Defence and Offshore Engineering Company Limited has successfully delivered “The Golden Suek”, one no. 74,500 DWT Panamax Bulk Carrier toGOLDEN SAPPHIRE INC. nominated by GOLDEN OCEAN GROUP LTD., a company headquartered in Norway.

This is the largest dry bulk carrier ever built in India, Pipavav Defence said in its communique to stock exchanges.

The Board of Directors of the Company, through resolutions passed by circulation has approved the following:


Increase in the Authorised Share Capital of the Company from Rs. 800 Crore to  Rs. 1,000 Crore.
Issue of up to 81,880,000 (Eighty One Million Eight Hundred Eighty Thousand) fully paid-up equity shares of face value of Rs. 10/- (Rupees Ten only) each of the Company to an International Strategic Investor (“the Investor”), in one or more tranches, at a price not less than Rs. 110/- (Rupees One Hundred and Ten only) per equity share or price to be determined pursuant to formula prescribed in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, whichever is higher, subject to the approval of Members of the Company and other requisite approvals.
The aforesaid investment will be a long term strategic investment in the Company. The Investor will initially subscribe to 5% of the paid-up capital of the Company and within specified time will increase its holding in the Company upto 10% of the paid-up capital of the Company.
The Investor is a leading and extremely reputed global conglomerate with strong interest in defence sector. The Investor will bring in critical technology required for manufacture of complex and critical equipments, systems required by armed forces i.e. Navy, Army and Air force. The Investor will have a right to nominate one director on the Board of the Company.