Pipavav Shipyard plans to raise over Rs 550 crore through IPO

To part-fund construction of facilities for shipbuilding and ship repair

Pipavav Shipyard reportedly plans to raise over Rs 550-crore through an initial public offer which is likely to open on 16 September 2009.

The IPO would consist of 8.54 crore equity shares of Rs 10 each and the proceeds would be used to part-fund construction of facilities for shipbuilding and ship repair, reports suggested. The proceeds would also allow the company to enter into the offshore business used in the exploration and construction of oil & gas companies.

Promoters are likely to dilute around 10-12% stake through the public issue.

Pipavav Shipyard, a shipbuilding and repair facility, is co-owned by SKIL Infrastructure and Punj Lloyd and also counts Singapore's Sembcorp Marine among its stakeholders.