Pipavav Shipyard IPO gets bids worth Rs 3,400 crore

Pipavav Shipyard’s initial public offer (IPO) which closed on September 18, 2009 received bids worth around Rs 3,400 crore on the last day of the issue. The 8.55 core share issue was in the price-band of Rs 55-60 per share.

The qualified institutional buyer (QIB) portion of the offer was subscribed 10.63 times, the high networth individual (HNI) portion was subscribed 14.80 times and the retail portion of the issue was subscribed 2.89 times, as per provisional figures available with the NSE.

However, the portion reserved for the company’s employees remained undersubscribed with bids for just 77%.

Pipavav Shipyard is promoted by engineering major Punj Lloyd, SKIL and Grevek Investments. The company is currently completing the construction of the shipyard located on the west coast of India adjacent to major sea lanes between the Persian Gulf and Asia.

On completion of construction, Pipavav Shipyard will be capable of ship construction and repairs for a range of vessels of various sizes and types, including naval and coast guard vessels, as well as fabrication and construction of products such as offshore platforms, rigs, jackets and vessels (but excluding sub-sea pipelines) for oil and gas companies

The shares of the company would be listed on the BSE as well as NSE.