SKIL files draft prospectus with Sebi for IPO

SKIL Infrastructure has filed the draft red herring prospectus (DRHP) with market regulator Sebi for its initial public offer through which it plans to raise Rs 1,125 crore.

The proceeds of the issue would be utilised to retire its debt and to fun expansion plans, said SKIL in the draft prospectus.

The Nikhil Gandhi-run infrastructure firm, which has pledged its 38.47% stake in Pipavav Shipyard to secure debt, plans to use Rs 800 crore of the IPO proceeds to pay its loan obligations.

As of December 31, 2010, the company has a total outstanding debt of Rs 1,490 crore. The company is planing to raise about Rs 225 crore from private placement prior to its initial share sale.

SKIL holds 45% stake in Pipavav Shipyard, besides equity interest in various power, SEZ and port projects.

ICICI Securities Ltd, JM Financial, Nomura Holdings Inc, SMC Capitals, IDBI Capital Market Services Ltd and Edelweiss Capital are advising the infrastructure firm on the issue.

The company is engaged in the development of Infrastructure projects, which include the Pipavav Shipyard, Pipavav Railways, Pipavav Expressway and Mumbai SEZ.