MIRA
INFORM REPORT
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Report Date : |
08.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
PIPAVAV SHIPYARD LIMITED |
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Formerly Known As : |
PIPAVAV SHIP DISMANTLINGAND ENGINEERING LIMITED |
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Registered Office : |
Pipavav Port, Post Ucchaya, Via Rajula,
Rajual Gujarat
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.10.1997 |
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Com. Reg. No.: |
33193 |
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CIN No.: [Company
Identification No.] |
U35110GJ1997PLC033193 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTP00565F |
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PAN No.: [Permanent
Account No.] |
AABCP1491L |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Subject is Engaged in Commercial Shipbuilding, Ship Repair, Offshore
Fabrication and Servicing and Naval Shipbuilding and Repair. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 17120200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a new large project promoted by well known promoters having
fine track records. Their trade relations are fair. Payments are correct and
as per commitments. The company can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
Pipavav Port, Post Ucchaya, Via Rajula, Rajual Gujarat, India |
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Tel. No.: |
91-2794-286200 |
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Fax No.: |
91-2944-286373 |
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E-Mail : |
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Website : |
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Corporate Office : |
SKIL House, 209, Bank Street Cross Lane, Fort, Mumbai – 400023,
Maharashtra, India |
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Tel. No.: |
91-22-66199000 |
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Fax No.: |
91-22-22696022 |
DIRECTORS
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Name : |
Mr. Nikhil Prataprai Gandhi |
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Designation : |
Director |
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Address : |
38, Sagar Villa, Bhulabahai Desai Road, Mumbai – 400026, Maharashtra |
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Date of Birth/Age : |
25.04.1958 |
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Date of Appointment : |
17.10.1997 |
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Name : |
Mr. Mahendra P. Vora |
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Designation : |
Director |
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Address : |
302, Pran Ashish, 37, Versova Beach Road, 7, Bungalow, Versova,
Andheri (West), Mumbai – 400061 |
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Date of Birth/Age : |
23.04.1945 |
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Date of Appointment : |
25.06.2003 |
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Name : |
Mr. R.M.V. Raman |
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Designation : |
Director |
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Address : |
1504, Wallace Apartment, Sleater Road, Grant Road, Mumbai – 400007 |
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Date of Birth/Age : |
16.07.1946 |
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Date of Appointment : |
19.12.2003 |
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Name : |
Mr. Rajkumar N. Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
24.06.1950 |
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Date of Appointment : |
25.06.2004 |
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Name : |
Mr. Atul Punj |
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Designation : |
Director |
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Name : |
Mr. Mahesh M. Gandhi |
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Designation : |
Director |
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Address : |
304, Sholay Apartment, Raheja Complex, Seven Bungalow, Versova, Mumbai
– 400061, Maharashtra |
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Date of Birth/Age : |
08.12.1952 |
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Date of Appointment : |
08.03.2007 |
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Name : |
Mr. Anoop Sethi |
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Designation : |
Director |
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Name : |
Mr. Ravichandran Narasimhan |
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Designation : |
Director |
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Address : |
1 / 13, Sanjivani, K.A. Subramaniam Rao, Matunga, Mumbai – 400019,
Maharashtra |
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Date of Birth/Age : |
28.05.1957 |
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Date of Appointment : |
30.12.2005 |
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Name : |
Mr. Sunil Chawla |
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Designation : |
Director |
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Address : |
C – 41, Sector 44, Noida – 201303, Uttar Pradesh |
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Date of Birth/Age : |
23.10.2006 |
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Date of Appointment : |
08.03.2007 |
KEY EXECUTIVES
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Name : |
Mr. Bhavesh Gandhi |
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Designation : |
Executive Vice Chairman |
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Name : |
Mr. Ray Stewart |
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Designation : |
Chief Executive Officer |
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Qualification : |
BSc and MBA |
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Experienced : |
35 years |
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Name : |
Mr. Debashis Bir |
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Designation : |
President |
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Qualification : |
BSc and B Tech (Honours) |
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Experience : |
30 years |
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Name : |
Mr. Hasmukh D. Daftary |
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Designation : |
President, Finance and Accounts |
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Qualification : |
LLB and CA |
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Experience : |
30 years |
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Name : |
Mr. S. D. Mehta |
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Designation : |
President, Human Resources |
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Qualification : |
Mech Eng and Dip in Resources Management |
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Name : |
Mr. Srinivas Eranki |
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Designation : |
Chief Technology Officer |
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Qualification : |
Graduate in IT and Diploma in Management |
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Experience : |
25 years |
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Name : |
Mr. A. G. Parab |
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Designation : |
President, Shipyard Infrastructure |
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Qualification : |
B E in Mechanical Engineering |
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Experience : |
35 years |
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Name : |
Mr. J. C. Bhatia |
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Designation : |
President, Corporate Affairs and Co – Ordination |
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Qualification : |
BSc and BE |
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Experience : |
35 years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as on 31.03.2007) |
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No. of Shares |
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SK Infrastructure Limited |
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17017569 |
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Montano Valves and Compressors |
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4500000 |
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Grevek Investment and Finance |
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25324300 |
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Category |
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Percentage of
Holding |
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Bodies corporate |
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100.00% |
BUSINESS DETAILS
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Line of Business : |
Subject is Engaged in Commercial Shipbuilding, Ship Repair, Offshore
Fabrication and Servicing and Naval Shipbuilding and Repair. |
GENERAL
INFORMATION
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Bankers : |
²
Union Bank
of India Industrial Finance Branch, Nariman Point, Mumbai – 400021,
Maharashtra, India E-Mail: unionifo@boi.net.in ²
Industrial
and Development Bank of India ²
Export
Import Bank of India Centre One, World Trade Centre, Cuffe Parade, Mumbai – 400005,
Maharashtra, India |
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Financial Institutions |
²
UTI Mutual
Fund ²
Infrastructure
Leasing and Finance Services Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
GPS and Associates Chartered Accountants |
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Address : |
A-1, Sindhi Niwas, Sitaladevi Temple Road, Mahim, Mumbai – 400016,
Maharashtra, India |
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Associates : |
² Semcorp Marine ² Korea Maritime
Consultants Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
800000000 |
Equity Shares |
Rs.10/-each |
Rs.8000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
294240000 |
Equity Shares |
Rs.10/- each |
Rs.2942.400
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2942.400 |
2260.000 |
2268.444 |
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2] Share Application Money |
250.000 |
687.834 |
0.000 |
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3] Reserves & Surplus |
1087.650 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4280.050 |
2947.834 |
2268.444 |
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LOAN FUNDS |
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1] Secured Loans |
3365.900 |
3504.373 |
1146.973 |
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2] Unsecured Loans |
1297.444 |
0.000 |
2560.052 |
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TOTAL BORROWING |
4663.344 |
3504.373 |
3707.025 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
8943.394 |
6452.207 |
5975.469 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
86.517 |
159.592 |
162.784 |
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Capital work-in-progress |
7557.732 |
6928.675 |
6483.036 |
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INVESTMENT |
510.773 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
0.000
|
0.000 |
0.000 |
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Cash & Bank Balances |
1102.016
|
0.928 |
0.443 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
39.858
|
14.114 |
3.885 |
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Total
Current Assets |
1141.874
|
15.042 |
4.328 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
351.985
|
650.724 |
674.701 |
|
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Provisions |
1.539
|
0.400 |
0.000 |
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Total
Current Liabilities |
353.524
|
651.124 |
674.701 |
|
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Net Current Assets |
788.350
|
(636.082) |
(670.373) |
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MISCELLANEOUS EXPENSES |
0.022 |
0.022 |
0.022 |
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TOTAL |
8943.394 |
6452.207 |
5975.469 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
0.000 |
0.000 |
0.000 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) Before Tax |
0.000 |
0.000 |
0.000 |
|
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
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Profit/(Loss) After Tax |
0.000 |
0.000 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
|
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
0.000 |
|
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Payment to Auditors |
0.000 |
0.000 |
0.000 |
|
|
Interest |
0.000 |
0.000 |
0.000 |
|
|
Insurance Expenses |
0.000 |
0.000 |
0.000 |
|
|
Power & Fuel |
0.000 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
0.000 |
0.000 |
0.000 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
0.000 |
0.000 |
0.000 |
|
Note : As per the
Government records, the company had not conducted any commercial activities
till the year 2006-07 and has not prepared any P & L account till date.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.08
|
0.22 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.22
|
0.02 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
³ Plant and
Machinery
³ Computers
³ Office Furniture
and Equipments
³ Vehicles
³ Lease Hold Land
Form 8:
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Name of the company |
PIPAVAV SHIPYARD LIMITED |
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Presented
By |
CMDE V.G.
Honnavar, Managing Director |
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1) Date and description of instrument creating the change |
Unattested Deed
of hypothecation dated: 8.03.2001 executed by Pipavav Ship Dismanting and Engineering
Limited in favour of export import bank of India (Exim Bank) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Loan of
Rs.400.000 millions together with interest, compound interest, additional
interest by way of liquidated damages, costs, charges, expenses and all other
monies payable by the borrower to Exim Bank under the Loan agreement dated
8.03.2001 made between the borrower and Exim Bank |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The whole of the
borrower’s movable fixed assets, both present and future briefly described in
schedule 3 to be deed of hypothecation including its movable plant and
machinery, equipment, appliances, furniture, vehicles, machinery spares and
stores, tools and accessories whether or not installed |
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4) Gist of the terms and conditions and extent and operation of the charge. |
1. The charge
created by the aforesaid deed of hypothecation shall operate as a continuing
security by way of a first charge for the due repayment by the borrower to
exim bank of the loan of Rs.400 millions tighter with payment of interest,
compound interest, additional interest by way of liquidated damaged costs,
charge, expenses and all other monies payable by the borrower to exim bank in
terms of the said loan agreement. |
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5) Name and Address and description of the person entitled to the charge. |
Export Import
Bank of India Centre One, World
Trade Centre, Cuffe Parade, Mumbai – 400005 |
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6) Date and brief description of instrument modifying the charge |
No instrument was
executed. A mortgage was created by the borrower on 8.04.2005 in favour of
Exim Bank by deposit of title deeds by way of constructive delivery of the
title deeds in respect of the borrower’s lands and other immovable properties
situate at Survey No. 42 Part, Village Rampura, Taluka, Amreli with Exmi Bank
with an intent to create security in favour of Exim Bank on the said lands
and immovable properties together with all the building and structures
thereon, fixed plants and machinery, fixture and fittings, permanently
fastened to the earth or fastened to anything attached to the earth. |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
(a) Supplemental
deed of hypothecation dt. 11.09.2003 executed by the borrower in favour of
Exim Bank in connection with the funding of interest to the extent of
Rs.65.063 millions on the rupee loan of Rs.400.000 millions particulars
whereof were filed with ROC on 10.10.2003 and registered by ROC on 13.10.2003 |
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Corporate
identity number (CIN) Foreign company registration number |
U35110GJ1997PLC033193 |
|
Name of the
Company |
PIPAVAV SHIPYARD LIMITED |
|
Address |
Pipavav Port, Post Ucchaya, Via Rajula,
Rajual Gujarat
|
|
This form is for |
Modification
of Charges |
|
Type of Charge |
Immovable
property |
|
Particulars of
the charge holder |
Union Bank of
India Industrial
Finance Branch, Nariman Point, Mumbai – 400021, Maharashtra E-Mail: unionifo@boi.net.in |
|
Amount secured by
the charge |
Rs.200.000
millions |
|
Brief of the
principal terms and conditions |
Rate of Interest: 0.25% below BPLR Terms of
Repayment: Repayment 32
equal quarterly installments commencing from October, 2010 Extent and
operation of the charge: As per the memorandum
of entry dated: 10.11.2006 |
|
Brif description
of the instrument modifying the charge under section |
Land admeasuring
10 hectares 50 acre and 50sqmtr bearing survey No. 42 (part)in village
rampare at Pipavav port, Taluka Rajula, Dist. Amreli. State of Gujarat,
together with buildings, structures, plant and machinery thereon as in second
schedule to the memorandum of entry |
|
Date of
Instrument modifying the charges |
10.11.2006 |
|
Particular of the
present modification |
Charge amount is
remains same as Rs.200.000 millions. Memorandum of entry dated: 10.11.2006,
charges under the mortgage by deposit of title deeds shall be a first charge
in favour of Exim Bank ranking part passu with the charges created by
borrower in favour of housing and urban development corporation Limited, UBI
and IL and FS their respective term loans |
As Per Web Details
History:
Subject project was originally conceived and implemented by SKIL Infrastructure Limited (SKIL).In
September 2007, Punj Lloyd Limited (PLL) acquired a substantial stake in the
Company, and now, both SKIL and PLL are co-promoters of the company.
The shipyard is being constructed on 84.99
hectares (equivalent to 210 acres or 849,000 square meters) of land, adjoining
800 meters of dedicated waterfront. The company has access to additional land
in a nearby parcel of approximately 572 acres. Since additional land is
acquiring formal approval for being converted into a Special Economic Zone,
subject will have the added advantage of being able to carry out some of its
activities through a highly tax-efficient SEZ unit.
A considerable part of the development activity has already been carried
out. Infrastructure developed so far includes two large wet docks(wet basins)
with a length of 680 meters each and widths of 65 meters and 60 meters. These
wet basins are being converted into dry docks which will be used for
construction and repair of ships and will be the largest in India and amongst
the largest in the world.
The contract for the first of these dry docks was awarded in April 2007
to AFCONS Infrastructure
Limited, one of India’s leading companies involved in executing
large and complex civil engineering projects at home and abroad, with emphasis
on jetties, docks, harbours, roads, bridges and special foundations. AFCONS is
part of the Shapoorji
Pallonji construction conglomerate The first dry dock is scheduled
for completion in Q3 2008.
Various sophisticated equipment is already in place such as IHI cranes,
sky masters, gantry cranes, gas cutting automated self-propelled gas cutting
equipment and hydraulic material handling equipment along with infrastructure
utilities such as oxygen generation plant, pollution control facilities, LPG
system and fire fighting systems.
The Company, then a wholly owned subsidiary of SKIL, was incorporated as Pipavav Ship Dismantling and Engineering Limited on October 17, 1997 under the Companies Act. In April 2005, IL and FS, one of the leading infrastructure finance companies in India, became a shareholder, and the name of the Company was changed to Pipavav Shipyard Limited. Government of India controlled banking institutions EXIM Bank and IDBI also took stakes in the company as well as private fund UTI.
In 2007, in addition to Punj Lloyd’s investment in the Company, several other major financial players became shareholders in the form of foreign equity investors
Company Profile:
Business Strategy
Subject long-term strategy is to have four legs to stand on, each
capable of supporting the Shipyard on its own. The Company will engage in
activities in the following business sectors:
· Commercial shipbuilding
· Ship repair
· Offshore fabrication and servicing
· Naval shipbuilding and repair
This strategy will enable company to mitigate the risks of relying on
one market area only and also allow for profitable business opportunities in
each sector to be grasped as market conditions dictate.
The company will have in-built the flexibility to switch from one
product type to another, without compromising on the efficiency or
cost-effectiveness of the yard operations.
Accordingly, there will be capability to build and repair (drydock and
afloat) most kinds of commercial dry and liquid cargo ships such as:
· Very Large Crude Carriers ("VLCC")
· Capesize bulkcarriers
· Suezmax tankers
· Aframax tankers
· Panamax bulkcarrier and tankers
· Handymax and handysize bulkcarriers and tankers
· Containerships
· Chemical Tankers
· Platform Supply Vessels and anchor handling tugs
· Dredgers
Amongst defence ships, the company will be in a position to offer
infrastructure to undertake the construction, drydocking, refit and servicing
of naval vessels including but not limited to :
· Aircraft Carriers
· Frigates
· Destroyers
· Corvettes
· Fleet Tankers
· Advanced Offshore Patrol Vessels (OPVs)
· Training ships
Given the increasing focus on offshore exploration for oil and gas
around the coast of India, and elsewhere, the Shipyard has been designed to
exploit the opportunities that this sector has to offer. Their capabilities in
this regard will include fabrication / construction of offshore platforms,
SBM’s, rigs, jackets, vessels, etc. for upstream oil and gas sector / companies
both in India and abroad. The company has teamed up with one of India’s leading
engineering companies involved in the offshore sector, Limited. This will help
the Company fast-track into this growing sector since Punj Lloyd is
pre-qualified with the major exploration and development companies operating in
Indian waters. Punj Lloyd has taken a substantial shareholding in the company.
At its site at Pipavav, subject is installing some of the most modern
shipbuilding equipment that can be purchased – inter-alia, from leading
companies in Norway, Japan, Italy and Norway. , The site will have two Goliath
cranes having lifting capacity of 600 tonnes capacity each, the largest in
India.
This modern plant, when combined with the company’s highly experienced
management team, comprising Indians and multi-national expatriates and the
competitively priced skilled labour available in India, will be a great benefit
to the company in its efforts to penetrate the Company’s targeted business
sectors and provide on-time and quality delivery.
The company has teamed up with two world-leading technical associates:
SembCorp Marine is a leading global marine engineering and
shipyard group, specialising in a full spectrum of integrated solutions in ship
repair, shipbuilding, ship conversion, rig building, topsides fabrication and
offshore engineering. SembCorp been advising the company on yard layout and
manufacturing processes in relation to the Company’s start-up commercial
shipbuilding operations.
Korea Maritime Consultants Company, Limited. (KOMAC) was established
in 1969 as Korea’s first and only private organization of naval architects and
marine engineers. KOMAC has designed more than 1,200 different classes and type
of ships. The company has a technical services agreement with KOMAC to provide
designs as well as assist with procurement of equipment and materials for the ships
being built, thus minimizing potential problems areas during the start-up phase
Stakeholders
Co-promoters
· SKIL Infrastructure Limited. (SKIL)
· Punj Lloyd Limited
Foreign Companies
· Sembcorp Marine Limited
Private Equity Investors
· 2i Capital PCC, Mauritius
· Trinity Capital (Nine) Limited, Mauritius
· USA New York Life Investment Management India Fund (FVCI), II LLC, Mauritius
· ABN AMRO Asia Merchant Bank (Singapore) Limited, Singapore
· SCB Asian Infrastructure Fund
News:
Pipavav Shipyard Limited plans Rs. 29000.000
millions shipyard project, Proposes to enter Capital markets, Files DRHP with
SEBI
MUMBAI, 18th January 2008: Pipavav Shipyard Limited is currently
constructing a shipyard complex at Pipavav, located on the west coast of India
adjacent to the maritime sea lane between the Persian Gulf and Asia. The
Shipyard will have an estimated investment of Rs 28880.000 millions. Upon
completion of construction, the Pipavav Shipyard will be capable of ship
construction and repairs for a range of vessels of different sizes and types,
as well as the fabrication and construction of offshore platforms, rigs,
jackets and vessels, for use by oil and gas companies in their exploration and
production activities.
The Company proposes to part finance this project cost with
the help of Rs 12486.700 millions (including premium) raised through equity
already issued and term loans from banks and financial institutions to the tune
of Rs 93520.000 millions. To meet the remaining funding requirement, Pipavav
Shipyard Limited proposes to enter the capital markets with a public issue of
86850000 Equity Shares of Rs 10 each through 100% book building process. It has
already filed DRHP with SEBI for the purpose. JM Financial Consultants Private
Limited, Citigroup Global Markets India Private Limited and Enam Securities
Private Limited are the Book Running Lead Managers (BRLMs) for the Issue. SBI
Capital Markets Limited, Kotak Mahindra Capital Company Limited and Motilal
Oswal Investment Advisors Private Limited are the Co-BRLMs for the Issue. IL
& FS Investsmart Securities Limited is Advisor to the proposed offerings.
The Company is constructing the Pipavav Shipyard based upon
the principle of concurrent shipbuilding, which involves the production of
vessels while simultaneously completing construction of the shipyard. The
construction of the Pipavav Shipyard is being conducted on an owner-managed
basis. It has agreements with three international shipowners for the
construction of 26 Panamax bulk carriers of 74,500 DWT each for delivery from
2009 to May 2012 at an aggregate contract value of US$ 1,063.12 million (Rs.
42,992 million).
The Pipavav Shipyard was originally promoted by SKIL Infrastructure
Limited and Grevek Investments. Punj Lloyd has now joined as a co-promoter
through its acquisition of 129361538 Equity Shares of the Company. As a
co-promoter, Punj Lloyd has agreed to conduct all of its offshore business,
excluding the construction and fabrication of subsea pipelines, in India
through Pipavav Shipyard and is expected to provide the Company with access to
opportunities in the Offshore Business industry, which includes business
opportunities in the fabrication and construction of offshore platforms, rigs,
jackets and vessels for the oil and gas industry. The construction of the
Pipavav Shipyard is expected to be completed in October 2008.
Pipavav Shipyard to raise $125m
The Economic Times, 20 Sep, 2007, 0306 hrs IST, Anto T Joseph, TNN
MUMBAI: Punj Lloyd and SKIL Infrastructure, co-promoters of Pipavav
Shipyard (PSL), are raising $125 million private equity through pre-IPO deals.
After New York Life, 2i Capital and Trikona Capital infused $75 million
— $25 million each — PSL has now roped in Citadel, the $17-billion US fund, and
is in final talks with AIG for $25 million each, to take the total PE
investments to $125 million.
PSL is lining up Rs 8000.000 millions (around $200 million) initial
public offering (IPO) in the next 2-3 months. It will sell around 10% stake in
the IPO. Post IPO, its paid-capital is expected to be around Rs 5000.000
millions. IDBI, IL&FS and Exim will hold around 12%.
The shipyard, currently being built at Pipavav, on the Gujarat coast,
has attracted many financial investors. Sources said the five US-based
investors will cumulatively hold around 40% in PSL, which claims to build a
600-metre-long dry dock, the third-largest in the world after Hyundai’s yard in
South Korea and Dubai Drydocks. Dry dock in shipping parlance means a yard for
repairs.
Sources also said that PSL has appointed a battery of coordinators and
managers for the maiden issue, including Citigroup, JM Financial, Enam, BLRM,
SBI Caps and Motilal Oswal. The draft red-herring prospectus (DRHS) is expected
to be filed with the market regulator Sebi in a few days.
Citadel has invested $25 million at Rs 45 per share having Rs 10 face
value, while it has signed for options worth another $50 million for Rs 75 per
share at a later stage. The domestic engineering major Punj Lloyd recently
informed the Bombay Stock Exchange (BSE) that it has now entered into a
shareholders’ agreement with PSL and acquired 129.400 millions shares at Rs 27,
aggregating to Rs 3492.800 millions.
It constitutes 28.8% of the present paid-up share capital of PSL and
25.6% of the diluted paid-up capital. The shipyard has already built an order
book position of $1.1 billion, and has already received advances of $100
million.
Afcons India, which was awarded a Rs 3300.000 millions contract to build
a dry dock in Pipavav, is progressing ahead of schedule, said sources. PSL is
also developing over 700 acres in Pipavav for ship-building activities, and
will spend around Rs 10000.000 millions over the next two years to build
additional infrastructure. The yard will build 12 large ships and other
offshore assets simultaneously.
The proposed shipyard, once completed, will be the largest in India and
the fifth-largest in the world. Designed to handle ships of all sizes, the yard
has already employed around 400 people, and is in the process of appointing
another 300. One of the investors, Trinity, has received the right of first
refusal to real estate opportunities in a proposed 150-acre township
development in the yard’s vicinity. The township will provide housing,
recreational facilities, schools, hospitals and commercial establishment.
Pipavav may file for IPO; Punj Lloyd sees Green
Money Control 14th Sept 2007
Punj Lloyd may be looking at significant value unlocking via Pipavav
Shipyard. According to reports, Pipavav Shipyard is likely to enter the capital
market soon. And Punj Lloyd had only recently bought 25% stake in Pipavav
Shipyard in August.
Punj Lloyd had bought the stake for around Rs 4000.000 millions valuing
the company at around Rs 1600.0000 millions. Sources say that Papavav Shipyard
is likely to file for an IPO in a weeks time. They have appointed merchant
bankers towards this issue.
Pipavav Shipyard is likely to raise around
Rs 8000.000 millions from this IPO, but whether this will be a frsh issue or
from dilution of promoters stake is not known. But what is certain is that this
will be great value unlocking for Punj Lloyd. Watch this space for more.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.93 |
|
UK Pound |
1 |
Rs.79.34 |
|
Euro |
1 |
Rs.62.55 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|