Pipavav Shipyard is entering the capital market on 16th September 09, with a public issue of 8.55 crores equity shares of Rs. 10 each, in the band of Rs. 55 to Rs. 60 per share.
The company has commenced its operations from 1st April 2009, with business of ship construction and repairs for a range of vessels of different sizes and types, including naval vessels and coast guard vessels as well as the fabrication and construction of offshore platforms, rigs, jackets and vessel for oil and gas companies. The company would be building assets, for the first time in the country, on modular concept, using its state of the art, 2 million sq. feet block making facilities, which would reduce building time considerably with saving in steel wastage by about 80%. Steel churning capacity for building offshore and warships is at 1,44,000 TPA, which is about 10 times bigger than the next largest shipyard in the country, being 14,000 TPA, of Cochin Shipyard. The facilities of the company are even capable to build super critical boilers, nuclear power equipments and is capable of handling multiple products such as Aircraft Carriers, Warship, FPSO, Rigs, Jack-ups, platforms, VLCC, and ULCC. It has capability to even dock 2 Naval Air Craft Carriers simultaneously, one each for building and one for repair.
The company has 2nd largest dock in the world, after Hyundai, with the company having 782 acres of land, of which 498 acres have been developed, with 662 meters in length and 65 meters in the width of dry dock, with waterfront length of 4.2 kms. As against this, Hyundai has 800 acres of land, at 7 locations, with length of 4.8 km. This has been confirmed by Hyundai by its letter of
Presently, 85% of the country's Defence needs are met from countries like
Present equity of the company of Rs. 580 crores will rise to Rs. 666 crores, with its pre-issue net worth of Rs. 1,255 crores, with book value being placed at Rs. 21.63 as on
Considering all these, we recommend subscribe to the issue, even at the upper band of Rs. 60 per share.