India’s largest dockyard, Pipavav Shipyard said on Thursday it plans to raise Rs 512 crore through an initial public offer (IPO) of shares by offloading 12.83 per cent of its post-issue equity share capital.
The company promoted by Skil infrastructure Ltd and Punj Lloyd Ltd is planning to offer over 8.5 crore shares to public at price band of Rs 55-Rs 60 per share of Rs 10 each.
The issue is due to open on September 16 and end on September 18. The company is planning to use the proceeds of the issue for construction of facilities in shipbuilding, ship repair and offshore services, besides working capital and general corporate purposes.
The company's current order book stands at over Rs 4,444 crore ($920 million) for 34 vessels, including the supply of 12 offshore supply vessels for state-run explorer Oil and Natural Gas Corporation. The company’s subsidiary, E-Complex, is involved in development of a sector-specific Special Economic Zone (SEZ).
OIL 31 times oversubscribed
Oil India’s IPO was subscribed nearly 31 times, quelling fears on investor appetite for new offerings.