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Pipavav Defence and Offshore Engineering Company, which owns the Pipavav shipyard, plans to raise $150 million by listing its shares on the London Stock Exchange (LSE).
The funds raised will reduce the firms’ overall debt and strengthen its balancesheet, the company said in a communication to the stock exchanges. Two investment bankers have been appointed to support the company’s plans to have the LSE listing done by October.
The funds will be utilised to build wide spectrum defence manufacturing facilities and infrastructure for the global demand, the company said.
Pipavav Defence had debt of Rs 4,486 crore at the end of the last financial year, according to report from ICICI Securities. The company has also received provisional approval from the Foreign Investment Promotion Board to raise $200 million.
“Pipavav Defence is currently working with nearly 12 countries to build warships and offshore assets and it expects to become a global defence and offshore company over the next 4 to 5 years,” the company said, adding that it has submitted bids worth $2 billion in various countries with respective local partners.
Recently, the Ministry of Defence has lifted the hold on the Mazagon Dock-Pipavav Defence joint venture to build warships for the Indian Navy. The JV, named Mazagaon Dock Pipavav, is to start by implementing part of the existing orders of Mazagon Dock of Rs 1 lakh crore ($21.69 billion).
> adith.charlie@thehindu.co.in
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