The Hindu : Business : Bharati Shipyard to tap market

Online edition of India's National Newspaper
Wednesday, Nov 24, 2004

Business

Business

Bharati Shipyard to tap market

By Our Staff Correspondent

MUMBAI, NOV. 23. Bharati Shipyard Ltd. (BSL), one of the leading shipyards in the private sector, is entering the capital market on December 2 with a public issue.

The issue will comprise 125 lakh equity shares of the face value of Rs. 10 each at a price band of Rs. 55-66 per equity share through the book building route and will constitute 55.56 per cent of the fully diluted post-issue paid up capital of the company. The issue closes on December 8.

The company is into the construction and repair of inland, coastal and ocean going ships and vessels.

The funds raised are to be used to finance its expansion plans and to enhance its ship repair capabilities and also to provide additional working capital margin.

Out of the present issue, 10 per cent, that is, 12.50 lakh equity shares are reserved for allotment to permanent employees and of the balance, 50 per cent, that is, 56.25 lakh shares are reserved for allocation to Qualified Institutional Buyers (QIBs) on a discretionary basis, 25 per cent, that is, 28.12 lakh shares for allocation to non-institutional bidders and 25 per cent, that is, 28.12 lakh shares for retail individual bidders both on proportionate basis.

P. C. Kapoor, Managing Director, BSL, said "Our present shipbuilding capacity is 6-8 ships annually up to the length of 120 metres or up to 9000 dead weight tonnage (DWT). We already have 12 ships under construction."

The company has constructed three all-purpose vessels for offshore activities and delivered to Qatar a year ago and already received a repeat order. The company is constructing six ships for Great Eastern Shipping and one for Reliance having in the past already delivered 10 vessels to Great Eastern and nine ships to Reliance.

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