SKIL Infra plans Rs 1,500 cr IPO

Written by Reuters | Mumbai | Updated: Mar 31 2010, 23:31pm hrs
Nikhil Gandhi-promoted SKIL Infrastructure plans to raise about Rs 1,500 crore through an initial public offering (IPO) by October 2010, a top company official said.

The company is expected to file its draft red herring prospectus (DRHP) within the next two to three months, the official said.

"We are planning to raise fresh funds through an IPO. The funds will be utilised partly to buy out co-promoter Punj Lloyd's stake from Pipavav Shipyard and to invest more in the shipyard," the SKIL official said here.

SKIL would buy the 19.5 per cent stake from Punj Lloyd, increasing its stake up to 40 per cent in the shipyard.

Through the IPO, SKIL plans to dilute up to 10 per cent of its promoters stake from the current holding of 94 per cent in the company, he said.

The company will spend close to Rs 1,500 crore to raise its stake in Pipavav Shipyard, including paying Rs 676 crore in cash to Punj Lloyd, and the rest for an open offer at Rs 62 a share to minority shareholders, the official said.

SKIL is a privately held company with share-holding controlled by the Gandhi family which has a stake of 94 per cent and some funds owned by a clutch of American (including AIG) and Mauritius-based investors who control six per cent.

At present, SKIL is worth USD 3.5 billion, including its various subsidiaries such as Pipavav Shipyard, Navi Mumbai and Maha Mumbai SEZ, logistics companies and industrial parks in Himachal Pradesh and Karnataka, he said.

SKIL is the parent company of Pipavav Port, Pipavav Shipyard, Railways, Expressways and Mumbai SEZ.

Recently, the company received a Rs 10,900-crore tourism-led infrastructure project in Himachal Pradesh, one of the largest projects in the country, to construct regional airports, several new industries and a ski village.