Wave of port IPOs to make a splash next year

After the successful initial share offering by the Ahmedabad-based Mundra Port and Special Economic Zone - it was the first port to list on Indian stock exchanges - local investors may get to see a slew of IPOs from ports next year.

Gammon India has already filed draft documents for an IPO with the market regulator, Securities and Exchange Board of India (Sebi). Today, the company announced that it was developing the Mumbai Offshore Container Terminal Project through a consortium with Spain's Dragados.

Similarly, analysts also expect an IPO from Gujarat Pipavav Port (GPPL), the country's first port in the private sector, in 2008. The port, which is promoted by APM Terminals, has IDFC Infrastructure Fund of India, IL&FS Trust Company and the Infrastructure Fund of India, as its shareholders.

The Mundra Port and SEZ, which saw only 10 per cent stake sale by the promoters, was subscribed over 100 times. "Just like DLF's mega IPO earlier this year, which triggered a stream of real-estate IPOs, we expect Mundra Port's IPO to create a wave for port IPOs," said an analyst with Emkay Stock & Shares.

Navayuga Engineering Co, which is executing the Andhra Pradesh's Krishnapatnam port, is also among the other most likely IPOs to hit the market some time next year.

Navayuga Chairman Chinta Visweswar is chalking out an expansion plan for ports and power generation involving investments of around Rs 24,000 crore over the next five years, according to officials.

Thanks to the valuations Mundra commanded from investors post-listing, several big corporate houses are now eyeing the port sector with a positive frame of mind. "India Inc has realised that investments in port will give good returns in the coming years," he said.

Some of the other Indian companies actively interested in participating in the port sector include GVK Power and Infrastructure, Larsen & Toubro, SKIL Infrastructure, Shapoorji Pallonji & Co, Afcons Infrastructure, Zoom Developers, DS Constructions, JSW Infrastructure & Logistics and Central Warehousing Corporation.

There are also ports that have private participation such as the Hazira port in Gujarat where LNG Shell is developing a greenfield port-cum-LNG terminal.

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NEW YEAR OFFERINGS

Gammon India, which is developing the Mumbai Offshore Container Terminal Project through a consortium with Spain's Dragados, has already filed draft documents for an IPO with Sebi

Navayuga Engineering Co, which is executing the Andhra Pradesh's Krishnapatnam port, is also likely to hit the market with an IPO next year

India plans to double its infrastructure spending to $500 billion by 2012

Capacity of 199 ports will be doubled to 1.5 billion tonnes by 2012