Its a year back story...Please don't follow this content..
I am sorry for this published post. Thanks.
Thanks a lot sir, I will try to put a check on this. ( I got new information from the person whose name is mentioned below.)
Pipavav Shipyard, promoted by SKIL Infrastructure, is having second thoughts on going ahead with its proposed $150-million IPO in the wake of the recent tremors on Wall Street that continues to rattle global and Indian markets.
The company, in which Punj Lloyd holds about 24 per cent stake, will be studying the market situation for the next three months before taking a final call on its IPO plans.
“We have not yet shelved our IPO plans, but we are studying the market movements closely. If we go ahead with the IPO, it will happen in the next three months,” Mr Ray Stewart, Chief Executive Officer of Pipavav Shipyard, told Business Line.
OPEN FOR PE
He said in the event of the company not taking up its IPO plans immediately, it will consider other alternatives to raise the money. Without elaborating on the other options, he indicated that there were many investors, both global and Indian, who were willing to invest in the company.
Its present private equity investors include 2i Capital PCC, New York Life Investment Management India Fund, Merrill Lynch International, Deutsche Bank AG and ABN-Amro Asia Merchant Bank.
FUND UTILISATION
The company plans to invest part of the funds to finance its expansion programme that will involve building of more sophisticated and bigger ships. Currently, the shipyard, which became operational recently, builds bulk carriers, with an order book of 22 ships involving a cost of about $1 billion.
“These orders are from foreign ship owners, including 12 from Greek owners and six from Norway,” Mr Stewart said. Pipavav’s present capacity is about 4-6 bulk carriers a year, which will go up to 8-10 later. “Our plan is to mature from bulk carriers to tankers and then to cape size vessels and drill ships,” he said.
OFFSHORE, NAVY FOCUS
The shipyard also plans to have a sharp focus on construction of offshore supply vessels in the light of the booming activities on the offshore oil and gas exploration front. “We are keen on participating in some projects of the ONGC,” according to him.
It is also keen on participating in the Indian Navy’s requirement of vessels. It has sought approval from the Defence Ministry to construct certain categories of ships for the Indian Navy and a Naval team, led by the Chief of Naval Staff, had recently visited the shipyard.
“We expect to get the approval sometime. We will not be involved in building sensitive and sophisticated warships for the navy, but will construct simple ships like cadet training ships and offshore patrol vessels,” he said
Avoid PPV Shipyard IPO: views of one expert.
1. No signs of revival in shipping industry, even though baltic index have doubled, charter rates for bulk carriers, tankers etc have quadrapled in last four months, but that is on a very smaller base, freight rates are still at 30% of what it saw in July 2008.
It is expected to remain in this range for next 2 to 3 yrs.
Main reason being - supply of new ships, and reduced global trade.
2. During the hay days of shipping from 2004~ 2008, huge orders for ship building were raised by shipping companies, as such all the ship building yards got booked till 2012, and also many shipyards were constructed in developing countries especially in China, Changjia river in China has numerous ship building yards.
Best Shipyards - Japanese
Market leaders - Koreans
Cheaper shipyards - Chinese.
Ship building in yards in India - still in a very nascent stage, only caters to local industry, or if the global shipyards are occupied.
Present scenario - Many Shipyards are on the verge of shutting down in China, as many ship owners have cancelled the ship building orders.
Development of many ship building yards in India are kept on hold.
Future of Ship building in India, seems to be very poor, as its very difficult to beat Japanese and Korean Shipyards, as they have better technologies, and are much ahead in this industry, Chinese uses their technology and makes cheaper ships, but of poor quality.
3. Now in this kind of scenario it does not make any sense to raise money for expansion of shipyards.
Indian Shipping companies has a better future, but not ship building yards/companies.
4. Having said above, if the price band for IPO is fundamentally less than other Indian shipyards, then same can be subcribed for listing gains.
Effect of dis investment of SCI.
It depends what govt intends to do.
1. Dilute small part of its equity - say 10%(govt has 80%)
2. Privatize SCI - give 51% stake to a private partner.
reasons for first, as you all know will be only to generate cash to reduce fiscal deficit.
reasons for privatization, is to generate cash and synergize SCI.
How does it effect shareholders.
1. Smaller dilution of promoter's stake. like other equity dilutions promoters tend to jack up the price of stock, to get a better value for their equity sale.
No other value addition to SCI
2. Privatisation of SCI, tieing up with a global shipping company will help grow the company expontentionally, like Great Eastern, Mercator lines, boosting the stock price.
Fyi last time when SCI was put on block there were many faltu company on the run for SCI like Nirma, videocon etc.
Also privatisation of SCI is next to impossible, as in past Unions have raised strong objections towards privatisation of SCI, unlike other Unions, shipping Unions are very strong.
Having said above
Shipping industry is still a developing industry in India, comparing to China, India's shipping industry is just 2~3% of Chinese shipping industry, to be frank India is no where in global map. so there is large scope of growth in Shipping industry, if you forsee India as next china, the guzzler of resources.
Fundamentally
For long term can invest in SCI, that is you may get results after 3 yrs, or else wait for 2 yrs before investing in SCI, for that matter in any shipping stock. I presume it will take another 2 ~ 3 yrs for global shipping industry to stablise.
technically
You may enter around 110, which is strong support level, if yu are expecting a bigger correction Shankar Sharma(the great Bear) style, or else wait for 2 yrs to enter.
I am sorry for this published post. Thanks.
Thanks a lot sir, I will try to put a check on this. ( I got new information from the person whose name is mentioned below.)
B N KumarHope you are satisfied.
CEO
Concept PR - Winner of "Agency of the Year 2007" award from PR Council of India
Pipavav Shipyard, promoted by SKIL Infrastructure, is having second thoughts on going ahead with its proposed $150-million IPO in the wake of the recent tremors on Wall Street that continues to rattle global and Indian markets.
The company, in which Punj Lloyd holds about 24 per cent stake, will be studying the market situation for the next three months before taking a final call on its IPO plans.
“We have not yet shelved our IPO plans, but we are studying the market movements closely. If we go ahead with the IPO, it will happen in the next three months,” Mr Ray Stewart, Chief Executive Officer of Pipavav Shipyard, told Business Line.
OPEN FOR PE
He said in the event of the company not taking up its IPO plans immediately, it will consider other alternatives to raise the money. Without elaborating on the other options, he indicated that there were many investors, both global and Indian, who were willing to invest in the company.
Its present private equity investors include 2i Capital PCC, New York Life Investment Management India Fund, Merrill Lynch International, Deutsche Bank AG and ABN-Amro Asia Merchant Bank.
FUND UTILISATION
The company plans to invest part of the funds to finance its expansion programme that will involve building of more sophisticated and bigger ships. Currently, the shipyard, which became operational recently, builds bulk carriers, with an order book of 22 ships involving a cost of about $1 billion.
“These orders are from foreign ship owners, including 12 from Greek owners and six from Norway,” Mr Stewart said. Pipavav’s present capacity is about 4-6 bulk carriers a year, which will go up to 8-10 later. “Our plan is to mature from bulk carriers to tankers and then to cape size vessels and drill ships,” he said.
OFFSHORE, NAVY FOCUS
The shipyard also plans to have a sharp focus on construction of offshore supply vessels in the light of the booming activities on the offshore oil and gas exploration front. “We are keen on participating in some projects of the ONGC,” according to him.
It is also keen on participating in the Indian Navy’s requirement of vessels. It has sought approval from the Defence Ministry to construct certain categories of ships for the Indian Navy and a Naval team, led by the Chief of Naval Staff, had recently visited the shipyard.
“We expect to get the approval sometime. We will not be involved in building sensitive and sophisticated warships for the navy, but will construct simple ships like cadet training ships and offshore patrol vessels,” he said
Avoid PPV Shipyard IPO: views of one expert.
1. No signs of revival in shipping industry, even though baltic index have doubled, charter rates for bulk carriers, tankers etc have quadrapled in last four months, but that is on a very smaller base, freight rates are still at 30% of what it saw in July 2008.
It is expected to remain in this range for next 2 to 3 yrs.
Main reason being - supply of new ships, and reduced global trade.
2. During the hay days of shipping from 2004~ 2008, huge orders for ship building were raised by shipping companies, as such all the ship building yards got booked till 2012, and also many shipyards were constructed in developing countries especially in China, Changjia river in China has numerous ship building yards.
Best Shipyards - Japanese
Market leaders - Koreans
Cheaper shipyards - Chinese.
Ship building in yards in India - still in a very nascent stage, only caters to local industry, or if the global shipyards are occupied.
Present scenario - Many Shipyards are on the verge of shutting down in China, as many ship owners have cancelled the ship building orders.
Development of many ship building yards in India are kept on hold.
Future of Ship building in India, seems to be very poor, as its very difficult to beat Japanese and Korean Shipyards, as they have better technologies, and are much ahead in this industry, Chinese uses their technology and makes cheaper ships, but of poor quality.
3. Now in this kind of scenario it does not make any sense to raise money for expansion of shipyards.
Indian Shipping companies has a better future, but not ship building yards/companies.
4. Having said above, if the price band for IPO is fundamentally less than other Indian shipyards, then same can be subcribed for listing gains.
Effect of dis investment of SCI.
It depends what govt intends to do.
1. Dilute small part of its equity - say 10%(govt has 80%)
2. Privatize SCI - give 51% stake to a private partner.
reasons for first, as you all know will be only to generate cash to reduce fiscal deficit.
reasons for privatization, is to generate cash and synergize SCI.
How does it effect shareholders.
1. Smaller dilution of promoter's stake. like other equity dilutions promoters tend to jack up the price of stock, to get a better value for their equity sale.
No other value addition to SCI
2. Privatisation of SCI, tieing up with a global shipping company will help grow the company expontentionally, like Great Eastern, Mercator lines, boosting the stock price.
Fyi last time when SCI was put on block there were many faltu company on the run for SCI like Nirma, videocon etc.
Also privatisation of SCI is next to impossible, as in past Unions have raised strong objections towards privatisation of SCI, unlike other Unions, shipping Unions are very strong.
Having said above
Shipping industry is still a developing industry in India, comparing to China, India's shipping industry is just 2~3% of Chinese shipping industry, to be frank India is no where in global map. so there is large scope of growth in Shipping industry, if you forsee India as next china, the guzzler of resources.
Fundamentally
For long term can invest in SCI, that is you may get results after 3 yrs, or else wait for 2 yrs before investing in SCI, for that matter in any shipping stock. I presume it will take another 2 ~ 3 yrs for global shipping industry to stablise.
technically
You may enter around 110, which is strong support level, if yu are expecting a bigger correction Shankar Sharma(the great Bear) style, or else wait for 2 yrs to enter.
You got your facts wrong. You have just recycled an old story. The Pipavav Shipyard IPO is very much on. It opens on September 16, 2009. We demand an apology from you for misleading your readers and the investment community. Pl have this story removed immediately. Obviously you have not been following the reports across the media and the interviews on CNBC and all other TV channels.
ReplyDeleteB N Kumar
CEO
Concept PR
Sir,
ReplyDeleteI might be wrong, but I draw this after following some sources. Its not that I m not following CNBC and other TV channels. I follow some TV channels, and a social networking group. I draw my conclusions based on the discussions their.
For the same reason....Chk this out..>>
http://www.thehindubusinessline.com/iw/2009/09/13/stories/2009091350431100.htm
If still you have anything which is irrelevant here, suggest me, I will write a apology note... But till now I din't think I had written a wrong story...
May be each expert have different point of view on the same thing...
This comment has been removed by a blog administrator.
ReplyDeletePlease realise the fact that what you gave was a year old story, boss.
ReplyDeleteRay Stewart whom you quoted as CEO was in that position long time ago.
It is a dated story.
You are definitely misleading the reader when you put current dateline to an old story and run it as its the latest developoment.
Thats cheating. Its also ridiculous to say that IPO may be put off when even the price band has been announced and document with ROC has been filed.
Check this out, your source material is an old stuff of October last year:
Date:01/10/2008 URL: http://www.thehindubusinessline.com/2008/10/01/stories/2008100151781000.htm
Back
Pipavav Shipyard reviewing IPO plan
Wary of market mayhem; considering other options also.
In the pipeline
Plans to mature from bulk carriers to tankers, drill ships.
Focusing on building offshore supply vessels.
Amit Mitra
Mumbai, Sept 30 Pipavav Shipyard, promoted by SKIL Infrastructure, is having second thoughts on going ahead with its proposed $150-million IPO in the wake of the recent tremors on Wall Street that continues to rattle global and Indian markets.
The company, in which Punj Lloyd holds about 24 per cent stake, will be studying the market situation for the next three months before taking a final call on its IPO plans.
“We have not yet shelved our IPO plans, but we are studying the market movements closely. If we go ahead with the IPO, it will happen in the next three months,” Mr Ray Stewart, Chief Executive Officer of Pipavav Shipyard, told Business Line.