Gujarat Pipavav Port Ltd (GPPL), developer and operator of Pipavav Port, the country's first private sector port, has filed its DRHP with Sebi on 3rd October, 2008 to enter the capital market with a public issue of equity shares of Rs 10 each at a price to be determined through the 100% book building process at a later stage, aggregating Rs 500 crores. The issue includes a preferential allotment to APM Terminals, Mautitius and a reservation to the employees of the company amounting to Rs 5 crores.
The company proposes to list its shares on BSE and NSE and the BRLMs to the issue are IDFC-SSKI and Kotak Investment Banking.
The objects of the issue are to infuse funds for expansion plans and for repayment of sponsor supportloans to the company's promoters - APM Terminals, Mauritius,besides for general corporate purposes.
The company proposes to utilize the proceeds from the issue for part financing the project cost of Rs 1,421crores. It will deploy Rs 798 crores for land development and yards, jetties and berths, dredging, water systems and buildings; Rs 405 crores for RTG cranes, rolling stock, power systems, environment and navigational aids; Rs 12 crores for software and hardware communications and security; Rs 83 crores for investment in PRCL; Rs 39 crores for preliminary & preoperative expenses; Rs 83 crores towards consultancy and contingency charges.
For 3 months ended 31.3.08, the company posted total sales of Rs 44.41 crores and a loss of Rs 20.40 crores. For the year ending 31.12.07, GPPL's total sales was Rs 165.75 crores against Rs 141.60 crores in the previous year ending 31.12.06. The company reported a loss of Rs 79.94 crores for the year ending 31.12 07 as compared to a loss of Rs 64.37 crores for the year ending 31.12.06.
GPPL is primarily engaged in providing port services for container cargo, bulk cargo and LPG cargo, besides providing railway cargo services. It currently accepts vessels with up to 12.5 meters draught and deploys 3 tugs for providing pilotage and towage services. The company has 4 dry cargo berths and an LPG berth.
The company has the exclusive right to develop and operate Port Pipavav and related facilities until September 2028 pursuant to the Concession Agreement with GMB and the GoG.
The company is promoted by APM Terminals, which is one of the largest container terminal operators in the world, and are part of the Denmark-based AP Moeller Maersk (APMM) Group, which is ranked 138 th among the top 500 corporations in the world by revenue in 2008, according to the Fortune Global 500. APM Terminals operates 50 terminals across 31 countries, employs 19,000 people and handled 31.4 million TEUs in calendar year 2007.
GPPL commissioned the first jetty and commenced cargo handling operations at Port Pipavav in November 1996.
The APMM Group acquired a 13.5% equity interest in the company in June 2001. Since acquisition of management control by APMM Group in April 2005, the company have been executing an expansion plan to create facilities to handle approximately 1.27 million TEUs of container cargo as well as approximately three million tonnes of bulk cargo per year.
The APMM Group currently owns its 54.8% equity interest through APM Terminals.