Trinity buys Pipavav stake

Acquisition in Sea King Infrastructure-promoted shipyard worth Rs 104 cr.

Trinity Capital has bought a 10.43 per cent stake in Pipavav Shipyard Ltd, promoted by Nikhil Gandhi-backed Sea King Infrastructure, for Rs 104 crore.

Existing investors in Pipavav Shipyard include financial institutions such as IL&FS and Exim Bank, which have a majority 51 per cent stake in the company.

"The acquisition is the second investment we have made with our strategic partner IL&FS in the infrastructure sector in India. Our participation in this deal represents a strategic investment that will give Trinity exposure to ship building, one of the fastest growing sectors in India," said Ashish Kalra, managing director of Trikona, the asset manager for Trinity Capital.

Pipavav Shipyard plans to build the largest integrated ship building yard in India, which will also be the fifth largest in the world, near the Pipavav port in Gujarat.

The shipyard will have a capacity of 300,000 tonnes (dead weight tonnage). Currently, the largest shipyard in India is in Kochi and has a capacity of 125,000 tonnes.

The Pipavav port was developed by the Nikhil Gandhi group and is now handled by Maersk. The 175-acre shipyard will have the capability to build ships and vessel types ranging from aircraft carriers and luxury liners to oil tankers. It will have the capacity to build 12 large ships simultaneously. The project is likely to see investments of Rs 8,000 crore over the next 7 years.

The shipyard will be strategically located between the two busy ports of Kandla and Mumbai. It will also be the only major shipyard between Dubai and Singapore.

As part of the transaction, Trinity will be building a 150 acre township in the vicinity of the shipyard.

This will provide housing, recreational facilities, schools, hospitals and commercial offices.