Mumbai: A unit of Great Eastern Shipping Co Ltd plans to raise $80-$100 million by selling 22.05 million shares in an initial public offering (IPO), two sources involved with the deal said on Thursday.
Greatship (India) Ltd filed initial papers with the markets regulator Sebi on Thursday for the IPO, the proceeds of which will be primarily used for acquisition of vessels and repayment of debt, one of the sources said.
The offshore services provider operates 14 support vessels and two rigs, used for exploration and production of oil and gas. It has placed orders for seven vessels, which are scheduled to be delivered in 2011 and 2012.
India has seen a string of IPOs from energy and energy-related firms with Essar Oil raising nearly $2 billion via IPO in London and others such as JSW Energy, Oil India, NHPC and Indiabulls Power selling shares locally.
Greatship had posted a net profit of Rs47.45 crore in 2008-09 on total income of Rs316 crore, according to the draft red herring prospectus.
The parent company will report its 2009-10 earnings on 22 May.
Kotak Investment Banking and Bank of America-Merrill Lynch are the bookrunners.