New Delhi: Private port developer and operator Gujarat Pipavav Port Ltd (GPPL) plans to raise nearly Rs500 crore through an initial public offer (IPO) and has filed draft papers with capital market regulator Securities and Exchange Board of India (Sebi).
The company is also considering a pre-IPO placement with various investors, according to the Draft Red Herring Prospectus (DRHP) filed with Sebi.
When asked about the expected time for hitting the primary market, GPPL general manager(communications) Bhuvana Ramalingam said: “We are hopeful to hit the market by the end of the current fiscal subject to regulatory approvals.”
According to the DRHP, Rs300 crore of the IPO proceeds will be utilised for prepayment of loans, Rs88.52 crore for investment in capital expenditure and Rs31.08 crore towards investment in capital equipment among others.
The public issue of shares of Rs10 each would be based on 100% book building process.
The issue includes a reservation of shares worth Rs 0 crore for the company’s eligible employees, according to the DRHP.
GPPL is the developer and the operator of APM Terminals Pipavav, which has multi-cargo and multi-user operations. APM Terminals Pipavav is located in the Saurashtra region of Gujarat.
GPPL is principally engaged in providing port handling and marine services for container, bulk and LPG cargo and is promoted by APM Terminals, which owns 57.9% equity interest in the company.
APM Terminals is a part of Denmark-based AP Moller-Maersk Group—one of the largest container terminal operators in the world with a global network of 49 terminals in 32 countries.
The other shareholders of the company include New York Life International India Fund (Mauritius), IDFC Infrastructure Fund, The Infrastructure Fund of India, IL&FS Trust Company Ltd, Jacob Ballas Capital India Pvt Ltd, Unit Trust of India, Industrial Development Bank of India and India Infrastructure Fund.
GPPL has the exclusive right to develop and operate APM Terminals Pipavav and related facilities until September 2028.
IDFC-SSKI and Kotak Mahindra Capital Company are the book running lead managers to the issue, while IDBI Capital Market Services Ltd is co-book running lead manager.
The equity shares offered through the IPO are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Indian companies are expected to embark on a mega fund raising spree this year with plans to raise over Rs50,000 crore by way of public offers driven by sharp recovery in the stock market. About 50 companies have already filed DRHP with Sebi.
Last year, about Rs20,000 crore was raised by the Indian companies through IPOs.