The initial public offer (IPO) of the private sector shipbuilder, Pipavav Shipyard, on Wednesday got fully subscribed in the very first hour of its first day of subscription.

Pipavav Shipyard, which expects to raise as much as Rs 513 crore through its public offer, received bids for 7,63,30,870 shares as against 7,01,77,275 shares on offer.

The issue got subscribed 1.09 times as on 1100 hours, according to the data available on the National Stock Exchange.

The IPO has received commitment of Rs 92 crore from six anchor investors-Batterymarch Financial Management, Commonwealth Equity Fund, California Public Employee’s Retirement System managed by Batterymarch Financial Management, GI India II, India Diversified (Mauritius) and Marshal India Select Fund who subscribed shares at Rs 60 each.

The company, promoted by engineering major Punj Lloyd, SKIL and Grevek Investments, is the latest firm to tap the capital market after the recent rally in the stock markets.

The company intends to utilise the IPO proceeds for the construction of facilities for shipbuilding, ship repair and for working capital requirements.

JM Financial Consultants, Citigroup Global Markets India, Enam Securities and SBI Capital Markets are the lead book runners of the issue, whereas Karvy Computershare is the registrar of the offer.

Keywords: ShipyardIPOstock markets