Indian Naval Shipbuilder Plans Overseas Listing

Pipavav shipyard

MUMBAI (Dow Jones)–Indian shipbuilder and defense contractor Pipavav Shipyard Ltd. (533107.BY) Saturday said it is considering an overseas listing of its securities even as the company’s board approved raising long-term debts of INR13 billion ($286.4 million).

In a filing to the local exchanges, the Mumbai company said it had the approval of lenders for INR10 billion of the planned debt with another INR3 billion in the process of being syndicated. The funds would be used to convert an existing facility of the company into a dry dock, Pipavav added.

pipavav shipyard logoThe contractor also said it plans to buy a 51% equity stake in privately-held Conceptia Software Technologies Pvt. Ltd., which designs ships and offshore rigs and barges.

Pipavav Shipyard said it signed an agreement with a company controlled by the Russian Ministry of Defence for a potential contract worth about $2 billion. It did not elaborate on the contract details.

-By Kenan Machado, Dow Jones Newswires