Pipavav plans to raise $200 million from overseas

MUMBAI: Pipavav Defence and Offshore Engineering Company plans to raise $200 million through a bond issue or overseas borrowings.

In a filing to the BSE, the company, formerly known as Pipavav Shipyard, said that its board has approved the fund-raising plan and it could be done in one or more tranches.

"Board of Directors of the company at its meeting held on April 27, 2012...approved raising of funds up to $200 million by way of issue of non-convertible bonds and/or ECB and/or FCCB and/or any other convertible instruments in one or more tranches," it said. The fund-raising plan is subject to the regulatory approvals, including that of its shareholders, it added.

The private sector shipbuilder has recently expanded into the defence sector and is looking at exports to geographies like Latin America, Indonesia and Africa. About half of its present order book, estimated currently at $1.5 billion, comprise overseas orders.

Shares of the company today closed at Rs 81 apiece on the BSE, up 0.25 per cent from the previous close.