Gujarat Pipavav's Rs 500 cr IPO likely in a month

Private port developer and operator, Gujarat Pipavav Port (GPPL), plans to hit the capital market with its initial public offering (IPO) of Rs 500 crore in a month, a top company official said today.

"We are expecting to get market regulator Sebi's (Securities and Exchange Board of India) approval in the next 15 days. After that, we will proceed for the IPO. In my opinion, we will be able to launch the IPO in a month," APM Terminals Pipavav Managing Director Prakash Tulsiani said here.

GPPL is promoted by APM Terminals, an international container terminal operating company. Of the total IPO proceeds, around Rs 120 crore will go into port infrastructure development, while Rs 300 crore will be used for repayment of loans, Tulsiani said.

The first phase of port infrastructure development is estimated to cost around Rs 1,600 crore, he said.

"We plan to increase cargo volumes and are trying to attract a bigger chunk of cargo going to JNPT (in Mumbai) and Mundra (Gujarat) ports with our facilities, good road and land connectivity and strategic location," he said.

At present, GPPL is principally engaged in providing port handling and marine services for container, bulk and LPG cargo. APM Terminals, based in The Netherlands, owns 57.9 per cent equity interest in the Indian firm.