Mundra Port and SEZ plans to raise Rs 1,500 cr via IPO

Mumbai: Adani group-promoted Mundra Port and Special Economic Zone Ltd (MPSEZL) is planning to raise Rs 1,500 crore through an initial public offer to part fund the development of the port.

The company plans to hit the capital market through a public issue of 40.25 million equity shares of Rs 10 each.

MPSEZL, the developer and operator of Mundra Port, located in Kutch district of Gujarat, is primarily engaged in providing bulk cargo services, container cargo, crude oil cargo and value-added port services, including railway services between Mundra Port and Adipur.

MPSEZL is the first company from SEZ and port sector to hit the capital market. The proceeds of the issue would be utilised for the further development of Mundra port and SEZ.

'The company will raise over Rs 1,500 crore to part fund construction and development of basic infrastructure and allied facilities in the proposed SEZ and construction and development of south basin terminal for coal and other cargo at Mundra Port among others,' MPSEZL, Executive Director, Ameet Desai told reporters in Mundra.

He said the proceeds of the IPO would also be utilised in part funding Adani Petronet (Dahej) Port Private Ltd, Adani Logistic Ltd and investments in Inland Container Private Ltd,'

'Adani Petronet (Dahej) Port Private Ltd, a 74:26 joint venture between Adani group and Petronet will set up solid cargo port at an estimated cost of Rs 1,250 crore,' Desai said.

Mundra Port has a strategic location serving the landlocked Northern India and North-Western India, which will give it huge amount of business. Land with port back-up area and infrastructure will help future expansion of the company, officials said.

Mundra SEZ would provide integrated infrastructure encompassing all infrastructure relating to business, living, learning, as well as recreation facilities to make the zone self-sufficient.

The SEZ would encompass industrial, business, and social infrastructure including development of industrial plots, commercial and residential buildings, schools, colleges, hospital, entertainment, sports and recreation facilities.

'The SEZ is proposed to be developed in a land area of about 10,000 hectares in a phased manner. In phase I, 3,500 hectares of land would be developed, of this, 2,400 hectares is already in possession. The estimated project cost for Phase I is Rs 3,000 crore,' Desai said.