Monday, January 4, 2010

Gujarat Pipavav Port plans raising Rs 500cr via IPO;files DRHP

New Delhi, Jan 4 : Private port developer and operator Gujarat Pipavav Port Ltd (GPPL) plans to raise nearly Rs 500 crore through an initial public offer (IPO) and has filed draft papers with capital market regulator SEBI.

The company is also considering a pre-IPO placement withvarious investors, according to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI).

When asked about the expected time for hitting the primary market, GPPL General Manager(Communications) Bhuvana Ramalingam told PTI, "we are hopeful to hit the market by the end of the current fiscal subject to regulatory approvals."

According to the DRHP, Rs 300 crore of the IPO proceeds will be utilised for prepayment of loans, Rs 88.52 crore for investment in capital expenditure and Rs 31.08 crore towardsinvestment in capital equipment among others.

The public issue of shares of Rs 10 each would be basedon 100 per cent book building process. The issue includes a reservation of shares worth Rs 10crore for the company's eligible employees, according to the DRHP.

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 handlingand 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.

APM Terminals is a part of Denmark-based AP Moller-MaerskGroup--one of the largest container terminal operators in theworld with a global network of 49 terminals in 32 countries.

The other shareholders of the company include New YorkLife International India Fund (Mauritius), IDFC InfrastructureFund, The Infrastructure Fund of India, IL&FS Trust CompanyLtd, Jacob Ballas Capital India Pvt Ltd, Unit Trust of India,Industrial Development Bank of India and India InfrastructureFund.

GPPL has the exclusive right to develop and operate APMTerminals Pipavav and related facilities until September 2028.

IDFC-SSKI and Kotak Mahindra Capital Company are the bookrunning lead managers to the issue, while IDBI Capital MarketServices Ltd is co-book running lead manager. The equity shares offered through the IPO are proposed tobe listed on the National Stock Exchange and the Bombay StockExchange.

Indian companies are expected to embark on a mega fundraising spree this year with plans to raise over Rs 50,000crore by way of public offers driven by sharp recovery in the stock market. About 50 companies have already filed DRHP with SEBI.

Last year, about Rs 20,000 crore was raised by the Indiancompanies through IPOs.

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