Gujarat Pipavav Port has raised Rs5.08bn ($107m) from its floatation, Rs1 per share over that agreed by the anchor investors.
Port communications manager, Bhuvana Ramalingam told
Port Strategythe take up is indicative of the shape of things to come.
She said: “The enthusiastic response from investors is due to the fact that India’s infrastructure sector is poised for big growth with the government encouraging the entry of private players in the ports industry through public-private partnerships, concessions etc.” To answer concerns about hinterland connectivity, the government is also pushing hard to develop new roads and dedicated freight corridors for efficient movement of goods, she added.
However, the interest won’t stop there. “In the state of Gujarat alone - where Port Pipavav is located - there is talk of 10 more ports being launched in the next decade,” added Ms Ramalingam.
The initial public offering of Rs46 per share was above the Rs45 per share agreed by the anchor group of investors prior to the actual floatation. Marked interest was shown from the retail investors and non-institutional investors. The demonstrates a marked turn-around in the market as in the past both these sectors have often been undersubscribed. The 11.6% portion set aside for non-institutional investors was covered more than 85 times.
The fact that the operation involves APM Terminals helped to buoy the floatation. APM Terminals held 57.9% before the IPO, although the company will see its stake fall to 42% as a result of the listing.
