Pipavav Defence and Offshore Engineering Company Limited (formerly Pipavav Shipyard) said that its board has approved issue of securities worth INR 81.90 crore to ace investor Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala and his close associate Utpal Sheth.

The company in a filing to the Bombay Stock Exchange said that the securities amount to 10,500,000 warrants. It added that Rakesh Jhunjhunwala and his wife would be alloted 5,000,000 warrants each, while Utpal Sheth will get 500,000 warrants.

Besides this, the company Board also approved issue of 1 crore warrants, worth INR 78 crore to its promoters Grevek Investments and Finance Pvt Ltd.

The filling said that each warrant, issued at a price of INR 78, is convertible into one fully paid up equity share of INR 10 each of the company, at any time within 18 months from the date of allotment.

It said that "The proceeds from the issue of warrants would be used towards furthering opportunities in Defence segment and for General Corporate purposes.”

(Sourced from profit.ndtv.com)