Pipavav fixes IPO price band at Rs55-60 a share

Pipavav fixes IPO price band at Rs55-60 a share

Mumbai: Entering into the capital market with 8.54 crore equity shares, Pipavav Shipyard on Thursday said it has fixed the price band at Rs55-60 a share.

The company would use the IPO proceeds for construction of facilities for shipbuilding, ship repair and offshore business, its non-executive chairman Nikhil Gandhi said at a roadshow in Mumbai.

Pipavav Shipyard, co-owned by SKIL Infrastructure and Punj Lloyd, is building a shipyard in Gujarat at a cost of close to Rs3,000 crore, of which it has already spent Rs2,086 crore.

The current debt-equity ratio of the company stands at close to one.

The IPO, the final price of which would be determined through book-building route, would open for subscription for three days from 16 September.

Of the total offering, the company has reserved 600,000 equity shares for its employees. Out of the net issue, 60% has been earmarked for qualified institutional investors (QIP), 10% for non-institutional investors and the remaining 30% for retail investors.

The company is also on the look out for an anchor investor (who can’t be a promoter of the issuer company), which might be finalised in the next week, Punj Lloyd chairman Atul Punj said.