Gopalpur Ports to float IPO worth Rs 1,200 cr

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New Delhi, Jan 14: Gopalpur Ports Ltd, the consortium developing the Gopalpur port in Orissa, is considering to float initial public offer (IPO) of Rs 1,200 crore later this year. The IPO is aimed at funding expansion and development of a special economic zone (SEZ) to boost exports of minerals.

However, managing director of Sara International DP Singh, who is also the chairman of the consortium, told FE that the decision is in its initial stage and the company is yet to acquire land and finalise the other formalities required to set up a SEZ.

The SEZ is being considered keeping in mind the huge potential to export the vast mineral resources found in the region like coal, limonite, aluminium and iron ore, Singh said.

GPL’s will be the second SEZ in Gopalpur. The Tata Group has already announced its plans for a SEZ covering around 1,173 hectares of land in Gopalpur. The Group is awaiting Central nod.

Elaborating IPO, Singh said the details are yet to be worked out. Maybe around 20% of the shares will be for the public.

The consortium, comprising of Cuttack-based Orissa Stevedores Ltd, New Delhi-based Sara International Ltd and Hong Kong-based NobleGroup Ltd, signed an agreement with the Orissa government to develop Gopalpur port into a fair weather port. Under the agreement the consortium will bring in equity of Rs 450 crore out of the total project cost of Rs 1,800 crore over 4 years. The balance amount will be raised from financial institutions.

Singh said the consortium is in talks with major port companies in Dubai and Singapore for transfer of latest technologies and with India Infrastructure Finance Co Ltd. (IIFCL) and other financial institutions for raising the debt to fund the development programme.

The talks with IIFCL, which has several banks like Canara Bank and Syndicate Bank as members to finance infrastructure projects, are in the final stages, Singh said, adding that it is expected that the amount of debt will be finalised and sanctioned to GPL within the next 2-3 months.

Work in the first phase of the port has been completed in a record time of 4 months since the agreement was signed on September 15, 2006. The first vessel from the port is expected to leave for Europe with 6,000 tonne of limonite by mid this month.