Gujarat Pipavav IPO oversubscribed 7.23 times


Mumbai: The $107 million initial public offering of the port operator and developer Gujarat Pipavav (GPPL) has been subscribed 7.23 times on the third day of the offering, according to stock exchange data showed on Wednesday. On Wednesday, qualified institutional portion was subscribed over 13 times of the shares reserved for them. While non-institutional investor category was subscribed 1.2 times, retail portion was subscribed 0.9 times at the end of trade. (GPPL) has set a price band of 42-48 per share for the offering that opened on Monday and closes on Thursday. The issue proceeds are proposed to be utilized for prepayment of loans; investment in capital expenditure; investment in capital equipment and general corporate purposes. APM Terminals, the port operating arm of Danish shipping and oil conglomerate A.P. Moller-Maersk, holds 57.9 percent stake in Gujarat Pipavav, pre issue. The share offering is being managed by Kotak Mahindra Capital, IDFC Capital and IDBI Capital. The company clocked revenues of 1.5 billion for the nine months ended September 2009 as against 1.6 billion in CY08.