Pipavav Shipyard to raise up to Rs 513 crore through an initial public offering

Pipavav Shipyard, a private shipbuilding company, promoted by SKIL Infrastructure and Punj Lloyd, is aiming to raise up to Rs 513 crore through an initial public offering (IPO), Exim News Service reports.

It has set the price band of its IPO at Rs 55-60 per share. Its issue to sell 85.5 million shares to investors opens on September 16 and closes three days later.

Pipavav Shipyard has an order book of $ 920 million (Rs 4,462 crore), including 12 offshore supply vessels from government-owned ONGC and an order for 22 dry bulk carriers from three European shipping companies.

"The company is renegotiating with the European clients for its bulk carrier orders and the value of the order book is likely to be rationalised according to the changed market conditions," the Vice-President, Mr Bhavesh Gandhi, had said last week.

The shipyard is being built with an investment of Rs 3,000 crore in Gujarat. Of this, Rs 2,086 crore has already been invested, with a part of the operation under way at the yard.
The company proposes to use the IPO proceeds for construction of facilities for shipbuilding, etc.

(Source: Transport Weekly)