Pipavav Shipyard IPO subscribed nearly 2 times

By 16:00 IST on day one

Close on the heels of a robust investor response to the initial public offer of Oil India, the IPO of the private sector ship builder, Pipavav Shipyard, was fully subscribed within an hour of opening of the issue today, 16 September 2009. By 16:00 IST on day one, the IPO was subscribed nearly 2 times. The issue size is 7.01 crore shares, excluding allotment made to anchor investors.

The company has allotted 1.52 crore shares to anchor investors at the top-end of the Rs 55-Rs 60 price band. The IPO has received commitment of Rs 92 crore from six anchor investors- Batterymarch Financial Management, Commonwealth Equity Fund, California Public Employee's Retirement System managed by Batterymarch Financial Management, GI India II, India Diversified (Mauritius) and Marshal India Select Fund.

The company, promoted by engineering major Punj Lloyd, SKIL and Grevek Investments, intends to utilise the IPO proceeds for the construction of facilities for shipbuilding, ship repair and for working capital requirements.

Pipavav Shipyard is setting up a modern shipyard at a cost of Rs 2995.18 crore on the west coast of the country adjacent to Pipavav Port in Amreli district of Gujarat. On completion of the construction of the shipyard, Pipavav Shipyard will have the capability to construct and repair a wide range of vessels up to 4,00,000 dead weight tonnage (DWT) including very large crude carriers (VLCCs) and large naval and coast-guard Vessels. The company began commercial operations from 1 April 2009.