Pipavav Shipyard Limited IPO

Abstract:

The Pipavav Shipyard Limited IPO was filed in January 2008. Through this Initial Public Offering , Pipavav Shipyard Limited aimed at raising capital worth 12.49 billion rupees for its' shipyard project. The company decided to sell its' 86,850,000 equity shares through Net Public Issue.

Pipavav Shipyard Limited IPO refers to the Initial Public Offering that Pipavav Shipyard Limited filed with Securities and Exchange Board of India(SEBI) in January, 2008. The company aimed at raising near about 12.49 billion rupees through this IPO.

Details of the Initial Public Offering

For this Initial Public Offering, Pipavav Shipyard Limited has already filed its' Draft Red Herring Prospectus or DRHP with SEBI . The company has decided to sell its' 86,850,000 equity shares through Net Public Issue. It was declared that each of these rupees 10 shares would be sold at a price determined through the book building process.

This book building process would be managed by the firms like Citigroup Global Markets India Private Limited, Enam Securities Private Limited and JM Financial Consultants Private Limited. The other brLMs or Book Running Lead Managers of this Pipavav Shipyard Limited IPO would be Kotak Mahindra Capital Co. Ltd., SBI Capital Markets Limited and Motilal Oswal Investment Advisors Private Limited.

Reason Behind the IPO

Pipavav Shipyard Limited started constructing a new shipyard complex on the west coast of India. The construction of this shipyard complex required an investment of near about 2888 crores of rupees. The company planned to finance the cost of this project partly by raising capital through Initial Public Offering. A major part of this project already has been financed by the company through term loans from financial institutions like banks. These term loans of the company amount to 935.2 crores of rupees. So, Pipavav Shipyard Limited thought that it would use the capital raised through IPO for the balancing the funding requirement of the shipyard project.