Pipavav Defence part stake sale by promoters

Pipavav Defence promoter Nikhil Gandhi is learnt to have concluded the deal for sale of its part promoter stake in the company, which was, stated by us in Corp Inkling sections last week. Huge trading volume of over 3 crore shares is seen on the counter today, as also of over 3 crore shares were seen on Friday, to support this possibility. Share has also moved up from Rs. 50 to Rs. 80 in last two weeks on expectations of this stake sale happening.

But the question is, who is the buyer of this stake? Earlier it was expected that the deal will be struck with M&M Group, though many other suitors were also in the race, including Reliance, Hero, L&T and a foreign company as well. But now, with promoters of Hero Moto having sold their stake of 3.5% in Hero Moto this morning for Rs. 1,870 crore, points a finger towards them, as the expected deal size was expected to be in the range of Rs. 1,800 to Rs.2,000 crore in Pipavav!

For now, we will only have to wait for the climax to unfold. As they say, picture abhi baki hai, mere dost!