Gujarat Pipavav Port IPO subscribed over 19 times

The initial public offer (IPO) of Gujarat Pipavav Port was subscribed over 19 times on Thursday, the final day of bidding, reflecting a strong appetite from investors for public issues.

Final subscription numbers for retail and high net worth individual categories were not available till 7:30 pm IST. Earlier, the portion reserved for institutional investors was subscribed 13.2 times on Wednesday, the last day of bidding for this category of investors.

Gujarat Pipavav Port, promoted by APM Terminals, came out with an initial public offer (IPO) of 115.9 million shares, comprising fresh issue of 104.2 million shares and an offer for sale of 11.7 million shares from shareholders. The price band for the issue was kept at Rs 42-48 a share. At the upper band of Rs 48, the issue will mop up over Rs 556 crore.

“With Gujarat Pipavav Port’s strategic location, we expect strong volume growth in the container traffic and bulk cargo, driving strong revenues growth in coming years,” said Supriya Madye, analyst at HSBC InvestDirect, who advised clients to subscribe to the IPO. “With the loan repayment from the proposed IPO funding, the company would also minimise finance costs, which would aid turnaround over next two-three years,” the analyst said.

Recent IPOs have seen good demand from investors and have done well after listing as well. “Fair pricing is the prime reason behind success of these issues,” said Mayank Shah, chief executive officer of Anagram Stock Broking.