Pipavav Shipyard to raise over Rs 550 cr through IPO

Pipavav Shipyard is likely to enter the capital market by September 16, a source said. The company plans to raise over Rs 550-crore through an initial public offering. The IPO would consist of 8.54 crore equity shares of Rs 10 each and the proceeds would be utilized to part-fund construction of facilities for shipbuilding and ship repair, the source said. Besides this, the proceeds would also give an upper hand to the company to enter into the offshore business used in the exploration and construction of oil & gas companies. The commercial production at the Pipavav shipyard in Gujarat, has started in April this year. The construction of four vessels are in full swing and the first of the lot would be delivered by April next year.