Pipavav Shipping to come out with IPO

Cashing in on the peaking, investor interest in India’s port and ship-building sector, Pipavav Shipyard Ltd, which is currently constructing a Rs 2,888 crore shipyard in Gujarat, will soon be coming out with its Initial Public Offering (IPO) in order to raise funds for the project. The company has already filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi) for the purpose.

Pipavav will enter the capital marked with a public issue of 86,850,000 equity shares of Rs 10 each through a 100 per cent book building process. The company has already raised around Rs 1,248 crore through equity issued and term loans from financial institutions and banks to the tune of Rs 935 crore. The remaining funds are expected to be raised through this IPO.

Upon completion of construction, the Pipavav Shipyard will be capable of ship construction and repairs for a range of vessels of different sizes and types, as well as the fabrication and construction of offshore platforms, rigs, jackets and vessels, for use by oil and gas companies in their exploration and production activities.