Pipavav fixes IPO price band at Rs 55-60 a share

Entering into the capital market with 8.54 crore equity shares, Pipavav Shipyard today said it has fixed the price band at Rs 55-60 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 here.

Pipavav Shipyard, co-owned by SKIL Infrastructure and Punj Lloyd, is building a shipyard in Gujarat at a cost of about Rs 3,000 crore, of which it has already spent Rs 2,086 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 September 16.

Of the total offering, the company has reserved six lakh equity shares for its employees. Out of the net issue, 60 per cent has been earmarked for Qualified Institutional Investors (QIP), 10 per cent for non-institutional investors and the remaining 30 per cent 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.