Pipavav Shipyard IPO opens for subscription

Pipavav Shipyard, which engaged in ship building, has opened its initial public offering (IPO) for subscription today. The 85.45 crore share offer, in a price band of Rs 55-60 per share, will close on September 18, 2009.

The company is promoted by engineering major Punj Lloyd, SKIL and Grevek Investments. Pipavav Shipyard 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 company has reserved about 1.53 crore shares for anchor investors. Besides, 60% of the issue will be allocated to Qualified Institutional Buyers (QIB), including 5% to mutual funds. Further, 10% would be available for non-institutional bidders and remaining 30% for the retail investors.

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