The Initial Public Offering (IPO) of the part of Adani Group, Mundra Port & Special Economic Zone Ltd. received 115 times subscription on closing day till 5:00 pm. It received 4,61,64,54,225 bids as against issue size of 40250000 shares. A total of 14,36,28,435 bids were received at the cut off price.

The Ahmedabad-based Adani Group has businesses in commodities trading, coal mining, power generation, real estate development and agriculture processing.

The Rs 10 shares are being offered in the price band Rs 400-440 per shares. The IPO will close on November 7, 2007.

The issue comprises a reservation of 24,060,000 shares allocated for Qualified Institutional Buyers (QIBs), 4,010,000 shares for Non Institutional Investors, 12,030,000 shares for Retail Individual Investors (RIIs) and 150,000 for employees.

The Issue and the Net Issue will constitute 10.05% and 10.01% respectively of the fully diluted post issue paid-up capital of the company.

Ameet Desai, Executive Director of the company said “Mundra Port 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”.

The funds raised would be mainly used for construction and development of basic infrastructure and allied facilities at the proposed SEZ at Mundra; construction and development of a terminal for coal and other cargo at Mundra Port.

The book running lead mangers to the issue are Kotak Mahindra Capital, Enam Securities, ICICI Securities, DSP Merrill Lynch, SBI Capital Markets, SSKI Corporate Finance and JM Financial Consultants.

On the other hand, Dubai Port (DP) World, leading global port operator with 42 container terminals across 22 countries, has declared that it would invest another USD 500 million in the next few years in India.

DP World has recently filled complaint against Adanis in court over the transfer of “ownership” of the second container terminal at Mundra from P&O Ports to MICT.
Jamal Majid bin-Thaniah, Executive Vice-Chairman of DP World and Group CEO of Port and Free Zone World has said “We are open to any opportunities that may come our way”.

Ganesh Raj, MD & Senior Vice-President of the company’s subcontinental operations said “The Company is observing for opportunities in the areas of back-up infrastructure for port operations, including providing facilities to connect various special economic zones, dry ports and inland container depots (ICDs) across the country to container ports via rail and road”.

DP World presently operates terminals in India at Mundra in Kutch district, Nhava Sheva International Container Terminal (NSICT) in Maharashtra, Chennai, Kochi and Vishakhapatnam.