Pipavav Defence to sell 10% to foreign co

Pipavav Defence & Offshore Engineering, formerly Pipavav Shipyard, will sell a 10% stake for Rs 900 crore to a foreign defence company which will provide critical technology necessary to manufacture equipment for the armed forces. Pipavav Defence will issue 81.9 million shares on a preferential basis to an international strategic investor for Rs 110 apiece. It will be the second instance when Pipavav is raising money by diluting its stake. Last week, it issued warrants to big bull Rakesh Jhunjhunwala for Rs 78 apiece. The investor will initially purchase a 5% stake in Pipavav for Rs 385 crore, and scale it up to 10% within three months.