Pipavav Shipyard to raise $125m

Punj Lloyd and SKIL Infrastructure, co-promoters of Pipavav Shipyard (PSL), are raising $125 million private equity through pre-IPO deals.

After New York Life, 2i Capital and Trikona Capital infused $75 million — $25 million each — PSL has now roped in Citadel, the $17-billion US fund, and is in final talks with AIG for $25 million each, to take the total PE investments to $125 million.

The shipyard, currently being built at Pipavav, on the Gujarat coast, has attracted many financial investors. Sources said the five US-based investors will cumulatively hold around 40% in PSL, which claims to build a 600-metre-long dry dock, the third-largest in the world after Hyundai’s yard in South Korea and Dubai Drydocks. Dry dock in shipping parlance means a yard for repairs.

PSL is lining up Rs 800 crore (around $200 million) initial public offering (IPO) in the next 2-3 months. It will sell around 10% stake in the IPO. Post IPO, its paid-capital is expected to be around Rs 500 crore. IDBI, IL&FS and Exim will hold around 12%.

Read more in The Economic Times article.