The cost of an out-of-warranty iPad exchange, in lieu of repair, is c.60% of the “as new” price.
If the iPad battery is replaced by Apple, assuming the iPad is otherwise undamaged, a device replacement is often offered in lieu of battery replacement. The exchange is charged at the same cost as an actual battery replacement, this typically being the local currency equivalent of $99 USD plus tax.
As described, you appear to have been quoted the out-of-warranty repair cost - suggesting that your iPad has other damage, or you have perhaps been incorrectly quoted.
If eligible for exchange, either as a repair or battery replacement, the exchange iPad will be a reconditioned iPad of the same model and specification as the original device - and will have a limited warranty.
Repair and battery replacement costs, which will vary by region, are detailed here:
iPad Repair - Official Apple Support