Pipavav Defence & Offshore Engineering on Thursday denied it was in talks to sell a stake to Mahindra & Mahindra , after a media report said it was close to clinching a deal.
The Economic Times, citing unnamed sources, said techonology-to-automative conglomerate Mahindra would purchase a stake in Pipavav for about Rs 3,000 crore (US $481.15 million), in a phased transaction that would eventually see it own a majority share.
"There are no negotiations/agreements which the company has entered into which requires disclosure under clause 36 of the listing agreement," Pipavav said in a regulatory filing to the Bombay Stock Exchange (BSE).
Earlier in February, the Economic Times reported that Hero Group, the home-grown motorcycle maker, as well as French shipbuilder DCNS, had begun talks to buy a controlling stake in Pipavav, which operates facilities for shipbuilding, repairs and engineering.
Companies are rushing to expand into the domestic defence sector, which is expected to grow rapidly as the government spends billions to modernise its armed forces, in part by developing a domestic industry that replaces the need for imported equipment.
Pipavav's scrip closed 5.32 per cent higher, at Rs 67.35 a piece, on the BSE on Thursday. The stock has jumped more than 30 per cent since the start of the week.