Monday, August 23, 2010

Gujarat Pipavav IPO Opens Today

We recommend only Long-term investors to apply for the IPO.
The company plans to raise Rs 500 crore via its offering of nearly 10.4 crore shares in the primary equity market, at the top end of the price band of Rs 42 to 48 per share. Post issue, the promoter group’s stake would reduce from 57.9% to 43.5% levels.
It plans to use up to Rs 300 crore of the IPO proceeds for repaying loans and its secured loans amounted to Rs 1,072.6 as of March 2010. Further, Rs 82.5 crore are earmarked for capex to enhance the infrastructure facilities at its port, and Rs 31.08 crore for purchasing a mobile harbour crane.


Initial Public Offer (IPO)


GUJARAT PIPAVAV PORT LIMITED (GPPL)

Issue Details

Issue Period: Aug 23rd - Aug 26th, 2010 (Retails Investors)

Aug 23rd - Aug 25th, 2010 (QIB)

Face Value: Rs 10 per Equity Share
Price Band: Rs 42- Rs 48 per Equity Share

Lot Size: 130 equity shares and multiples thereof

Issue Size: Rs 500 crore


Book Running Lead Managers

Kotak Mahindra Capital Co Ltd

IDFC Capital Market Services Ltd

Registrar

Karvy Computershare Pvt Ltd


Objects of Issue

1. Infuse funds for certain elements of ongoing expansion plan, as under:
a. Construction of Container Yards and allied facilities at Port Pipavav;
b. Phase 2 of capital dredging at Port Pipavav;
c. Purchase of Post Panamax Quay Cranes;
d. Purchase of Rubber Tyred Gantry (RTG) Cranes;
2. Repayment of Sponsor Support Loan to the Promoter, APMT Mauritius;
3. General Corporate Purposes; and
4. Achieve the benefits of listing on the Stock Exchanges.


Company Profile

Gujarat Pipavav Port Ltd (GPPL), the developer and operator of Pipavav port, the country’s first private sector port. GPPL is promoted by APM Terminals, which is one of the largest container terminal operators in the world operating 50 terminals in 31 countries, and is part of the Denmark-based A.P. Moeller Maersk Group. Located in the Saurashtra region, Pipavav port is one of the principal gateways on the west coast, providing facilities for handling both containers and bulk cargoes. The port is connected to the North Indian hinterland with a good road and rail network. Mudra Port and SEZ Limited is one of the peers of GPPL. In the year ended December 31, 2009, the promoter group APM Terminals handled 31.0 million TEUs and had revenues of over US$ 3.00 billion.GPPL is principally engaged in providing port handling and marine services for: (1) container cargo, (2) bulk cargo, and (3) LPG cargo. In addition, they operate a CFS and also generate revenue from land-related and infrastructure activities.

Crisil has assinged an IPO Grade of 4 to GPPL IPO. This means as per Crisil the company has " Above Average Fundamentals".




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