Pipavav Defence and Offshore Engineering Company, earlier Pipavav Shipyard, is looking to raise funds

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by listing its shares in an overseas exchange by March next year as it seeks to expand business.

A senior company official said the company is looking at listings on London, Toronto or New York exchanges. SKIL Infrastructure-promoted Pipavav Defence and Offshore Engineering would join the likes of Delhi-based Bilt Paper and Adani Mining, which are also planning to list on the London Stocks Exchange over the next 12 to 18 months.

In June, SKIL Infrastructure filed a draft red herring prospectus (DRHP) for listing on Indian stock exchanges and is awaiting approval from the market regulator. Edelweiss Capital, ICICI Securities, JM Financial, Nomura and SBI Caps are the book-running lead managers.

The Pipavav official told Financial Chronicle that the company would finalise investment bankers for the overseas issue over the next couple of months.

“We are in talks with the leading global investment bankers and the funds raised would depend on the guidance given by the investment bankers,” the official said.

Pipavav Shipyard, which changed its name to Pipavav Defence and Offshore Engineering in June, is the only private shipyard in India to have licence to produce frontline warships for the government of India. It is

the fifth largest in the world in terms of size, a recent report by Networth Stock Broking said.

For the project, the company had to raise long-term debts up to Rs 1,300 crore out of which Rs 1,000 crore has been approved by lenders, while the remaining Rs 300 crore is in the process of syndication.

“We expect the approval anytime soon, but the IPO will depend on favourable market conditions,“ another senior company official said.

The company recently decided to convert its existing wet basin into the second dry dock. The project would enhance the company's capabilities to cater to growing defence sector demand both within and outside the country, the company recently said.

The official said Pipavav Shipayard signed a “major protocol with a company controlled by Russian ministry of defence for a potential contract of about $2 billion.“

(With inputs from Rajesh Abraham)