Gujarat Pipavav Port (GPPL) has opened its Rs 500 crore initial public offering (IPO) for subscription. Mehta Equities has advised investors to subscribe to this IPO with healthy returns on Investment.
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. The price band for the issue, which closes on August 26, is at Rs 42-48/share.
The report says, "We expect the company's operational efficiency to improve substantially on phase by phase expansion. The strong background of A.P Moller-Maersk group, strategic location and fast growth in volumes will compel growth of the port going forward. We expect that the funds from the proceeding IPO would significantly reduce debt, the company could well move into the profit zone in a couple of years. While looking at the long term growth prospects of the company, Industry and scope to expand the margin we advice Investors to subscribe to this IPO with healthy returns on Investment."
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