Pipavav Shipyard has fixed its initial public offering (IPO) price band at Rs 55-60 per share. The issue will open for subscription on September 16 and close on September 18 to raise around Rs 470-512.7 crore by diluting nearly 12.74% equity.
As per the DRHP (draft red herring prospectus) filed with the SEBI, the company is coming out with a public issue of 86,850,000 equity shares of Rs 10 each. About 2,600,000 equity shares of Rs 10 each will be reserved in the issue for subscription by employees. The issue less the employee reservation portion shall be referred to as the net issue. The issue will constitute 13.04% of the fully diluted post-issue equity share capital of the company.
Proceeds from the issue will be used for construction of facilities for shipbuilding, ship repair and the Offshore Business, and margin for working capital.
The shares issued via IPO are proposed to be listed on the BSE and NSE. JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited are book running lead managers to the issue. Karvy Computershare Private Limited is the registrar.
Pipavav Shipyard is located on the west coast of India adjacent to major sea lanes between the Persian Gulf and Asia. 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 products such as offshore platforms, rigs, jackets and vessels (but excluding subsea pipelines) for oil and gas companies which the company intends to offer in Offshore Business. It also intends to commence production of vessels while simultaneously completing construction of the Pipavav Shipyard.
Bhavesh Gandhi, the company’s Executive Vice Chairman, said “The sheer scale, size and state-of-the-art modern infrastructure that we have put in place, which includes the largest dry dock in the country, measuring 662/65 million tonne, serviced by two mammoth goliath cranes with a lifting capacity of 600 tonne each and a massive modern state-of-the-art fabrication infrastructure backed by modern and latest equipment that we have introduced allows us the opportunity to do multiple production and the focus being the defense, offshore, besides other sectors.”
Punj Lloyd bought 22.34% stake in the company at Rs 350 crore. Sea King Infra (SKIL Infrastructure) and Punj Lloyd are co-promoters, which hold 45.5% stake.