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Pipavav Defence to buy 51% stake in ship design firm

Pipavav Defence to buy 51% stake in ship design firm
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First Published: Sat, Aug 13 2011. 03 21 PM IST
Updated: Sat, Aug 13 2011. 03 21 PM IST
Mumbai: India’s Pipavav Defence and Offshore Engineering Company said on Saturday it plans to acquire 51% stake in ship design engineering and consulting firm Conceptia Software partly by acquiring shares from shareholders and the rest through purchases.
It did not disclose the value of the proposed acquisition.
The firm also said it has signed a protocol with a company controlled by the Russian ministry of defence for a potential contract of about $2 billion.
Pipavav has existing strategic tie-ups with foreign partners including SAAB Dynamics, Northrop Grumman and UK’s Babcock Group for defence production.
In April this year, the firm got the go-ahead from the Foreign Investment Promotion Board (FIPB) to build warships, thus making it eligible to bid for multi-billion dollar defence contracts along with foreign partners.
Pipavav said it plans to convert its existing wet basin into a dry dock facility to enhance manufacturing facilities for the defence sector. It plans to raise long term loans of upto Rs1,300 crore of which Rs1,000 crore has been approved by lenders.
Pipavav Defence, which swung to a June quarter net profit of Rs7.94 crore compared with a net loss of about Rs9.8 crore a year ago, also said it is planning an overseas listing of its shares.
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First Published: Sat, Aug 13 2011. 03 21 PM IST