Pipavav Shipyard IPO Likely To Open Sep 16 Or Sep 17-Banker

The initial public offering of India's Pipavav Shipyard Ltd. is likely to open for subscription either Sept. 16 or Sept. 17, a banker directly involved in the issue said Wednesday. The company wants to launch the IPO before regulatory approval, received in September last year, expires on Sept. 17, the investment banker told Dow Jones Newswires.
"The founders have decided to go ahead with the issue now. We're just waiting for the final nod from the Securities and Exchange Board of India," the banker added.
He said that as some time has passed since the initial approval, the company is updating data in the initial prospectus such as financials, legal and other information, which SEBI will need to approve.
According to the preliminary prospectus filed with SEBI, Pipavav Shipyard was to offer 86.9 million shares via the sale.
The banker said the company is planning to raise INR4 billion to INR5 billion via the issue by diluting about 13% of the post-issue equity.
He added that the company would begin pre-marketing the maiden share sale in Hong Kong and Singapore towards the end of this week.
Pipavav, a shipbuilding and repair facility, is co-owned by SKIL Infrastructure Ltd. and Punj Lloyd Ltd. and also counts Singapore's Sembcorp Marine Ltd. among its stakeholders.
Other stakeholders include Infrastructure Leasing and Financial Services Ltd. and the Indian government-controlled Exim Bank, Industrial Development Bank of India and UTI Mutual Fund. Merrill Lynch International and Deutsche Bank AG also hold stakes.
Citigroup Global Markets India Pvt. Ltd., Enam Financial Consultants Pvt. Ltd. and JM Financial Consultants Pvt. Ltd. are the joint global coordinators and book runners for the issue.