APM Terminals Indian Unit to Launch IPO

APM Terminals Indian Unit to Launch IPO

Gujarat Pipavav Port, one APM Terminals’ two terminal-operating companies in India, plans to raise $107 million from an initial public offer to repay loans and develop port facilities.

Gujarat Pipavav Port will sell shares valued at 90 cents to $1.03 each in the IPO, it said in a release in Mumbai.

By The Numbers: U.S. Container Trade With India.

The Indian port operator will sell new stock and 11.7 million shares from existing shareholders in the four-day offering that will close Aug. 26, the release said.

Gujarat Pipavav will use proceeds from the sales to repay $65 million in loans, buy equipment and develop port facilities at Amreli in the western state of Gujarat, Managing Director Prakash Tulsiani told Bloomberg News in Mumbai Wednesday.

AMP Capital Investors, the investment management unit of Australia’s biggest life insurer, will sell half its stake in the offer from its two India funds at lower than their purchase price, Tulsiani said.

Gujarat Pipavav lost $25 million on sales of $48 million in the year ended Dec. 31, 2009, it said in the offer document.

Kotak Mahindra Capital, IDFC Capital, and IDBI Capital Market Services will manage the sale.

APM Terminals also operates Container Gateway Terminals India at Jawaharlal Nehru Port, a joint venture with Container Corporation of India.

-- Contact Peter T. Leach at pleach@joc.com.