Will repay complete debt of SKIL Infra: Pipavav Shipyard

Nikhil Gandhi, Chairman, Pipavav Shipyard in an interview with CNBC-TV18, said that the company is committed to repay USD 250 million debt which was secured for the fusion stake of Punj Llyod in Pipavav Shipyard. The company is in the process of raising the money from the open market  for the same.

However, he declined to comment on reports about JP Morgan looking to buy stake in SKIL Infra for USD 2.2 billion. Nikhil Gandhi is also the promoter of SKIL Infra.

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Below is the verbatim transcript of his interview with Gautam Broker and Reema Tendulkar of CNBC-TV18. Also watch the accompanying video.

Q: Can confirm whether these reports are actually true? Has JP Morgan at least avenged any interest to buy stake in SKIL Infra?

A: I am not commenting on this subject right now. Because this is something we will want to inform everyone through suitable communication.

Q: You received a significant order about USD 600 million earlier in May. Is there any possibility that you are bagging significant order in the near-term because this stock is doing well in trade today?

A: Three weeks ago, we received a formal contract of USD 665 million. We are looking at working on another couple of billion dollar worth of projects for the naval ships of different types and kinds. For this, we have got the partnership in place. Since Shipyard has been fully operational and last Sunday we launched two of the biggest ships ever built in this country.

So, we are on course in terms of the new contracts, the current execution and the building of the partnerships. We are committed to payback our debt in SKIL Infra which we secured to buy the stake of one of our shareholders Punj Lloyd about a year ago and to that the company again is debt free and things like that.

Q: Could you tell us how much of the debt in SKIL Infra are you planning to repay?

A: We will be repaying all of our USD 250 million debt that we have secured for the fusion stake of Punj Llyod in Pipavav Shipyard and from the open market and things like that.

Q: The question that I asked you earlier was in connection with this. Because that the reports suggests that SKIL Infra could get a valuation of upwards of USD 2 billion and that could actually help you pay down your debt. Is the valuation of USD 2 billion plus looking like a possibility at this point?

A: We are committed to repay all our debts and for which we are in the process of raising the money. SKIL has always been a debt free company and we want to make it debt free very soon. In our purchase in Pipavav Shipyard has gone up by 60%. So the investors are very happy.

Q: Is it possible that you would even accept a financial investor if not a strategic investor like something like JP Morgan, is it possible or would you look for oil and gas peer that has technical expertise?

A: At a holding level it is always beneficial for financial investor and for company level, it is good to have both strategic as well as financial investor.