Reliance May Buy 26% in Indian Shipbuilder

Indian energy major Reliance Industries may buy a 26% stake in shipbuilder Pipavav Shipyard, the Economic Times reported on Friday.

The newspaper quoted Nikhil Gandhi, chairman of SKIL Infrastructure, which controls Pipavav, as saying the shipbuilder would issue fresh equity to a strategic investor.

He did not name Reliance, but said: "The potential strategic partner could be a major national or international player from the oil and gas sector."

Citing market sources, the Economic Times said Reliance was the strategic investor. Officials at Reliance and Pipavav could not immediately be reached by Reuters for comment. The buyer of the stake in Pipavav will make an open offer to the public after the deal is closed, the newspaper said.