With the Rs 500-crore IPO of Gujarat Pipavav Port (GPPL) hitting Indian capital market today, discerning investors are getting another marine infrastructure opportunity to participate after Mundra Port and
SEZ (Mundra) IPO, which evoked a strong response from investors, way back in November 2007. GPPL, the developer and operator of APM Terminals Pipavav, is India's first private sector port having established multi-cargo and multi-user operations.
Owned by Danish conglomerate, the AP Moller-Maersk Group, APM Terminals Pipavav has four berths with a total length of 1,075 metres to handle bulk and containerised cargo. In addition, there is an LPG berth with a service deck of 65 metres. The 4,550-metre channel length at the port allows day and night marine operations through the year.
Besides road connectivity, the port has ensured dedicated rail connectivity by forming a unique rail subsidiary in collaboration with Indian Railways and Gujarat Maritime Board in 2003. GPPL holds 38% stake in the rail joint venture.
The offer involves issue of equity shares of Rs 10 each for cash at a price band fixed from Rs 42 to Rs 48 per share aggregating to Rs 5,000 million and an offer for sale of up to 11,707, 369 shares by the Infrastructure Fund of India and the India Infrastructure Fund, together with the fresh issue. It also includes a reservation of shares of Rs 10 each aggregating to Rs 100 million for the eligible employees.
The bid/issue period will close on August 25 for qualified institutional bidders other than anchor investors and on August 26 for non-institutional bidders, retail individuals and employees. Of the Rs 500 crore that the company plans to raise from the IPO, it will invest about Rs 120 crore in developing infrastructure and Rs 300 crore to repay loans raised to complete the first phase of the Rs 1,200-crore expansion which is complete, according to company sources.
Source : economictimes.indiatimes.com