Gujarat Pipavav, Maersk's India Unit, to Raise $107 Million in Share Sale
Gujarat Pipavav Port Ltd., the Indian unit of AP Moeller-Maersk A/S, plans to raise 5 billion rupees ($107 million) from an initial public offer to repay loans and develop port facilities.
The unit of the world’s largest container-shipping line will sell shares for 42 rupees to 48 rupees each in the IPO, Gujarat Pipavav said in a release in Mumbai. The Indian port operator will sell new stock and 11.7 million shares from existing shareholders in the four-day offering that will close Aug. 26, the release said.
Gujarat Pipavav will use proceeds from the sales to repay 3 billion rupees of loans, buy equipment and develop port facilities at Amreli in the western state of Gujarat, Managing Director Prakash Tulsiani said in Mumbai today.
AMP Capital Investors Ltd., the investment management unit of Australia’s biggest life insurer, will sell half its stake in the offer from its two India funds at lower than their purchase price, Tulsiani said.
Gujarat Pipavav made a loss of 1.18 billion rupees on sales of 2.24 billion rupees in the year ended Dec. 31, 2009, it said in the offer document.
Kotak Mahindra Capital Co., IDFC Capital Ltd. and IDBI Capital Market Services Ltd. will manage the sale.