Pipavav Shipyard IPO's price band set at Rs 55-60

Pipavav Shipyard, which is building a shipyard in Gujarat, has set the price band of its forthcoming initial public offer (IPO) at Rs 55 to Rs 60 per share. With its plan to sell 85.5 million shares to investors, the company will be able to raise Rs 513 crore at the upper end of the band.

The company is co-owned by SKIL Infrastructure and engineering firm Punj Lloyd. It has an order book of $920 million (Rs 4,462 crore), including 12 offshore supply vessels from government-owned ONGC and an order for 22 dry bulk carriers from three European shipping companies.

“The company is renegotiating with the European clients for its bulk carrier orders and the value of the order book is likely to rationalised according to the changed market conditions,” Vice-President Bhavesh Gandhi had said last week. He did not specify the extent of impact on the order book.

The shipyard in Gujarat is being built with an investment of Rs 3,000 crore. Of this, Rs 2,086 crore has already been invested with a part of the operation underway at the yard. The company would use the IPO proceeds for construction of facilities for shipbuilding etc. The IPO would open for three days from September 16.