Mumbai: Gujarat-based Pipavav port launched an IPO today with the intention of raising Rs 500 crore. The company has stated that that the money would be used to repay loans and invest in infrastructure facilities at APM Terminals Pipavav. Part of the funds will also be allocated for capital expenditure and general corporate purposes.
However, Gujarat Pipavav Port has seen a muted response to the offering, which may be the result of guidance given by investor advisories. The Economic Times quotes Hem Securities as saying, "The company is bringing the issue at price band of Rs 42-48 per share. The company has posted losses consecutively from last few years. Apart from it high debt burden of company affect the financial position of company. However the industry prospects of company are very strong. But at present levels, we don't find company an attractive destination to deploy the funds. Hence, we recommend investor to avoid the issue." [23/08/10]
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