Gujarat Pipavav Port likely to raise over Rs 500 crore through IPO

To fund Pipavav port expansion

Private port operator Gujarat Pipavav Port (GPPL) is reportedly planning to raise at least Rs 500 crore through an initial public offering (IPO). Reports further indicated that a formal announcement on the planned IPO is expected in the next few days.

The company plans to utilise the IPO proceeds to fund its Pipavav port expansion plans

GPPL also plans to set up a dedicated coal terminal, a coal conveyor belt and a new coal handling system, designed to handle 20 mt of coal by 2016. The port currently handles bulk, containerized and liquefied petroleum gas cargo.

APM Terminals Management BV, the world's third biggest container port operator, owns 54.8% in GPPL, which has rights to develop and operate the port for 30 years that began in September 1998. APM Terminals had acquired control of GPPL from the original promoter, SKIL Infrastructure, in April 2005.

The other shareholders of the company include New York Life International India Fund (Mauritius) LLC, IDFC Infrastructure Fund, IL&FS Trust Company, Jacob Ballas Capital India, Axis Bank, IDBI Bank and India Infrastructure Fund.

Earlier in October 2008, GPPL had filed a draft prospectus with the market regulator Securities & Exchange Board of India (Sebi) for a proposed public offering of shares, which was withdrawn in March 2009 citing poor market conditions.