Pipavav Shipyard’s initial public offer(IPO) was subscribed 8.21 times till the close of the issue today. The retail portion was subscribed 2.69 times while the portion for high networth individuals (HNIs) was subscribed 14.85 times. The qualified institutional buyer (QIB) portion was subscribed 10.63 times after allocation to anchor investors. The employees’ quota was subscribed 0.77 times.
The company is raising up to Rs 513 crore through the offer. It had entered the market with an issue size of 85.5 million shares, priced at Rs 55-60 each. Close to 15.3 million shares were reserved for anchor investors. Anchor investors are individuals or institutions who subscribe to IPOs before they are opened to others. Pipavav Shipyard has received commitment worth Rs 92 crore from six anchor investors.
The six anchor investors are Batterymarch Financial Management Inc A/C Legg Mason Emerging Markets Trust, Commonwealth Equity Fund, California Public Employee’s Retirement System managed by Batterymarch Financial Management Inc, GI India II, India Diversified (Mauritius) and Marshal India Select Fund. The allotment to anchor investors was at Rs 60 a share.
Pipavav will use the proceeds for construction of facilities for ship-building, ship- repairing and for working capital needs.
It is promoted by domestic engineering major Punj Lloyd, SKIL and Grevek Investments.