Pipavav Shipyard IPO fully subscribed in one hour

In the very first hour of its first day of subscription, the initial public offer (IPO) of Pipavav Shipyard got fully subscribed and it looks forward to raise as much as Rs 513 crore through its public offer while it received bids for 7, 63, 30,870 shares as against 7,01,77,275 shares on offer.

Moreover, it is said that the issue got subscribed 1.09 times as on 1100 hours whereas the IPO received commitment of Rs 92 crore from 6 anchor investors, Batterymarch Financial Management, Commonwealth Equity Fund, California Public Employee's Retirement System, GI India II, India Diversified (Mauritius) and Marshal India Select Fund who subscribed shares at Rs 60 each.

However, the company is promoted by Punj Lloyd, SKIL and Grevek Investments and is the most recent firm to hit the capital market after the recent rally in the stock markets. On the other hand, the main aim of the IPO is to employ the proceeds for the construction of facilities for shipbuilding, ship repair and for working capital requirements. Further, the lead book runners of the issue are JM Financial Consultants, Citigroup Global Markets India, Enam Securities and SBI Capital Markets while Karvy Computershare is the registrar of the offer.