Bharati Shipyard Ltd said on Thursday it has acquired 14.9 percent shares of Great Offshore through two units at 315 rupees each.
Natural Power Ventures and Dhanshree Properties have acquired the stake, which was pledged with Bharati's other two units - Advitiya Urja and Vishudh Urja - by Great Offshore's founders, it said in a notice to the Bombay Stock Exchange.
"We have decided to acquire the pledged shares and hold it as a stratetic long term investment," P.C. Kapoor, managing director of Bharati Shipyard said.
"The investment would generate long-term benefits for the company and add strength to the company's position in the international market," he was quoted in the release as saying.
Great Offshore provides offshore and oilfield services, while Bharati Shipyard makes offshore vessels and rigs.
Great Offshore's founder and managing director Vijay Sheth had pledged 14.87 percent for a loan of about 2 billion rupees, a Bharati spokesman had told Reuters in January.
Bharati Shipyard has about $230 million worth of orders from Great Offshore for a rig due for delivery in May next year and a multi-purpose supply vessel to be delivered in September.
"There are a number of synergies between the two companies. A strategic investment into Great Offshore will enhance value for stakeholders of both the companies," Vijay Kumar, managing director was quoted in the release as saying.
Great Offshore's diversified fleet and strong financial performance makes it a "highly valuable investment proposition for Bharati," Kumar said.
Great Offshore posted a 68.3 percent in net profit in FY09 to 713.5 million rupees on a 39 percent rise in net sales to 2.57 billion.
Shares in Bharati Shipyard ended up 10 percent at 96.35 rupees while Great Offshore rose 2 percent to 295.45 rupees.