Gujarat Port IPO to raise INR5bn

The Indian port developer and operator based in Gujarat, west India, has received regulatory clearance from Securities and Exchange Board of India (SEBI) to launch its proposed initial public offering (IPO) on August 23. The IPO is expected to raise INR5bn which will be used for debt repayments and investments in infrastructure facilities.

Gujarat Pipavav Port (GPPL), an Indian private port developer and operator, has received regulatory clearance from Securities and Exchange Board of India (SEBI) to launch its initial public offering, Bhuvana Ramalingam, general manager, communications at GPPL told Infrastructure Investor.

The IPO will consist of a fresh issue of shares aggregating to INR5 billion (€83.3 million; $107.2 million) and an offer for sale of up to INR11.71 million equity shares held by the Infrastructure Fund of India and the India Infrastructure Fund. It will open on August 23, according to the share sale offer document filed with SEBI, and is expected to close on August 25.

Out of the INR5 billion total, INR3 billion will be used for existing debt repayment while the remaining INR2 billion will be used for investments in infrastructure facilities such as building a warehouse and container yards, according to Ramalingam.

“The issue was due in December 2008,” Ramalingam said, “but then the markets crashed and we had to withdraw. That time the entire INR5 billion was to be invested in infrastructure but because of the bad market we borrowed money for investment in infrastructure facilities. And now the IPO money will be used to repay existing loans and invest in other infra projects.”

The share sale document states that equity shares of INR10 each aggregating to INR100 million will be reserved for eligible employees and the share sale will be managed by IDFC-SSKI, Kotak Mahindra Capital Company and IDBI Capital Market Services.

GPPL is the developer and operator of APM Terminals Pipavav, which has multi-cargo and multi-user operations. APM Terminals Pipavav is located in the southern part of Gujarat.

The Gujarat-based port operator is principally engaged in providing port handling and marine services for container, bulk and LPG cargo and is promoted by APM Terminals, which owns a 57.9 per cent equity interest in the company.