Wednesday, August 25, 2010

Gujarat Pipavav Port IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis
Gujarat Pipavav Port (GPPL), a developer and operator of APM Terminals Pipavav, is entering capital market with a public issue with an aim to raise Rs 500 crore through the issue.

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.

Promoter APM Terminals Mauritius Limited currently holds 57.9% stake in the company, pre issue. Among institutions, IDBI Trusteeship Services Ltd and IDBI Bank are the major shareholders with 10.2% and 8.9% stake.

There is an offer for sale of upto 1,17,07,369 equity shares by the Infrastructure Fund of India, LLC and the India Infrastructure Fund, LLC. The IPO opens on August 23 and will close for subscription on August 26. The company has fixed a price band at Rs 42-48 per share.

The issue proceeds are proposed to be utilised for (a) prepayment of loans; (b) investment in capital expenditure; (c) investment in capital equipment; and (d) general corporate purposes.

The book running lead managers to the issue are IDFC-SSKI Ltd and Kotak Mahindra Capital Company Ltd. IDBI Capital Market Services Ltd is the co-book running lead manager and Karvy Computershare Pvt Ltd is the registrar.

Recommendation
The IPO market is on a uptick. Subscribe to this IPO for listing gains. The company has a good long term growth prospect.

Subscription
The IPO has got subscribed around 20 times. At the close of the ipo,
QII segment got subscribed by 13.2 times
NII segment got subscribed by 85.7 times
Retail segment got subscribed by 9.15 times
Employee reservation segment got subscribed by 0.09 times

Allotment
The company has fixed Rs. 46 as the issue price for the IPO against the price band of Rs. 42-48 which should bring cheer to investors. Click here to check if you have been alloted Gujrat Pipavav shares!

Listing
Gujarat Pipavav IPO got listed today and saw good buying interest from investors. It touched an intraday high of Rs 58 and low of Rs 52, after opening at Rs 56.10 on NSE. It finally ended at Rs 53.5 on NSE and at Rs 54.05 on BSE, a 17% premium over its issue price.


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