GPPL plans to raise Rs 500 cr from IPO

Integrated port developer and operator Gujarat Pipavav Port (GPPL) today said it plans raise close to Rs 500 crore from its public issue, which opens on August 23.

"The issue proceeds shall be used for repayment of Rs 300 crore loan, besides for development of rail infrastructure, yards and roads," GPPL's Managing Director Prakash Tulsiani told reporters here.

The company has invested over Rs 2,000 crore for the development of port in the past. It has a right to develop 1,561-acres of land at the port, of which around 485-acres has been developed.

Along with a fresh issue of shares, aggregating Rs 500 crore, the company is making an offer for sale of up to 1,17,07,369 equity shares of Infrastructure Fund of India, and the India Infrastructure Fund.

GPPL has fixed a price band of Rs 42-48 per equity share for its IPO, which opens on August 23 and closes on August 25 for QIB bidders and on August 26 for non-QIB bidders.

"The employees quota in the public issue is of Rs 10 crore," Iyer said.

GPPL, is amongst the country's first private sector port to offer facilities for handling both containers and bulk cargoes, and is promoted by APM Terminals B V, which is part of the Denmark-based AP Moeller Maersk Group.

"The promoters shareholding post the IPO is expected to come down to around 44 per cent from the current 57.9 per cent in the company," GPPL CFO Hariharan Iyer said.