Gujarat Pipavav Port Ltd (GPPL), the private port developer and operator, plans to raise nearly Rs 500 crore through the initial public offer (IPO) and has filed draft papers with Securities and Exchange Board of India (Sebi).
According to the Draft Red Herring Prospectus (DRHP) filed with Sebi, the company is also considering a pre-IPO placement with various investors.
The company expects to hit the capital market by the end of this fiscal subject to the regulatory approvals, said GPPL General Manager (Communications) Bhuvana Ramalingam.
The company will utilise Rs 300 crore of the IPO proceeds for prepayment of loans while Rs 88.52 crore will be utilized for investment in capital expenditure and Rs 31.08 crore for investment in capital equipment among others.
The public issue of Rs 10 each would be based on 100 per cent book building process. The issue includes a reservation of shares worth Rs 10 crore for the company’s eligible employees, according to the DRHP.
The equity shares offered through the IPO are proposed to be listed on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE).
The book running lead managers to the issue are IDFC-SSKI and Kotak Mahindra Capital Company, while IDBI Capital Market Services Ltd is co-book running lead manager.
GPPL is the developer and the operator of APM Terminals Pipavav, which has multi-cargo and multi-user operations. APM Terminals Pipavav is located in the Saurashtra region of Gujarat.
GPPL is principally engaged in providing port handling and marine services for container, bulk and LPG cargo and is promoted by APM Terminals, which owns 57.9 per cent equity interest in the company.
Port Pipavav last quarter ended December 2009 has tied up with Malaysian International Shipping Corporation for bringing in reefer (refrigerated containers ) cargo through their ships to Port Pipavav. MISC Berhad, a subsidiary of PETRONAS, Malaysia, is a leading international shipping line of Malaysia and currently berths ships at Nhava Sheva in Mumbai.
Port Pipavav will be its second port destination in India. Port Pipavav will now have MISC Berhad’s Halal Express Service (HE1), a leading Reefer carrier operating from the Far East to India, calling at the port
GPPL has the exclusive right to develop and operate APM Terminals Pipavav and related facilities until September 2028.
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