Gujarat Pipavav Port sets IPO price band at Rs 42-48/sh

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Gujarat Pipavav Port (GPPL), a developer and operator of APM Terminals Pipavav, has fixed a price band at Rs 42-48/share for its public issue of Rs 500 crore, reports CNBC-TV18. The issue will be opening for subscription on August 23, 2010.

Along with fresh issue of shares, there is an offer for sale of upto 1,17,07,369 equity shares by the Infrastructure Fund of India, LLC and the India Infrastructure Fund, LLC. The issue will close for subscription on August 26.

GPPL is the developer and operator of APM Terminals Pipavav, which has multi-cargo and multi-user operations. It has the exclusive right to develop and operate APM Terminals Pipavav and related facilities until September 2028 pursuant to the Concession Agreement with GMB and the GoG.

Promoter APM Terminals Mauritius Limited currently holds 57.9% stake in the company, pre issue. Among institutions, IDBI Trusteeship Services Ltd and IDBI Bank are the major shareholders with 10.2% and 8.9% stake.

The issue proceeds are proposed to be utilised for (a) prepayment of loans; (b) investment in capital expenditure; (c) investment in capital equipment; and (d) general corporate purposes.

The book running lead managers to the issue are IDFC-SSKI Ltd and Kotak Mahindra Capital Company Ltd. IDBI Capital Market Services Ltd is the co-book running lead manager and Karvy Computershare Pvt Ltd is the registrar.