Pipavav Shipyard raises Rs160 crore through convertible warrants

Pipavav Shipyard, the country's largest private sector shipyard, has raised Rs160 crore through issue of convertible warrants to a clutch of promoters, at Rs78 per warrant.

The company issued 5 million warrants each to Rakesh and Rekha Jhunjhunwala, and 5 lakh warrants to Utpal Seth.

The company also proposes to issue 10 million warrants to Grevek Investments and Finance, another promoter company, at Rs78 each.

Each warrant is convertible into a share within 18 months of allotment.

Proceeds of the issue will be used for expanding Pipavav's presence in the defence segment and for general corporate purposes, the company said in a filing with the Bombay Stock Exchange (BSE).

Pipavav Defence & Offshore Engineering Company, earlier known as Pipavav Shipyard, reported net profit of Rs7.94 crore in the first quarter of the current financial year (April-June 2011-12) as against net loss of Rs9.79 crore in Q1 of the 2010-11 financial year.

Pipavav Defence and Offshore Engineering Company operates the largest shipyard in India, covering over 200 hectares with approximately 720 metres of sea front and 685 metres of outfit quay. It has one of the largest drydocks in the world. The company recently received licence to build warships for the Indian Navy.
Pipavav Shipyard touched an intraday high of Rs80.70 and an intraday low of Rs79 on the Bombay Stock Exchange (BSE). Trading volume rose to 384,127 shares.