Gujarat Pipavav Port ends with 17% premium

Gujarat Pipavav BSE | NSE 10/02/12 Are Mutual Funds betting on Gujarat Pipavav?

Shares of Gujarat Pipavav Port witnessed huge buying interest on day one. A share closed at Rs 53.85, a premium of 17.07% over its issue price of Rs 46 on NSE.

It touched an intraday high of Rs 58 and low of Rs 52, after opening at Rs 56.10. The scrip traded with volumes of 10.95 crore shares.

Managing Director Prakash Tulsiani said the company should be in the black in 2011, "GPPL has seen a 34% growth in bulk business and margins have gone up due to ramped up volumes. For the period of January-June 2010, revenues went up 34% and earnings before interest, tax, depreciation and amortization, (EBITDA) increased to Rs 34 crore from Rs 3 crore. EBITDA margins improved to 44% for the same period."

On the BSE, it ended at Rs 54.05 and traded with volumes of 5.8 crore shares.

Prakash Tulsiani said the company received Rs 500 crore from the initial public offer (IPO), which closed on August 26 on the back of strong investor response. "Of this Rs 300 crore will be used to retire debt as we will save Rs 39-40 crore interest cost after debt repayment."

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