Pipavav Shipyard has revealed its plans to raise over Rs 550 crore through initial public offer (IPO) of 8.54 crore equity shares.

The IPO, after which the promoters will dilute around 10-12 per cent stake, will be the first in the line from a ship making firm in the recent past.

The company would utilize the net proceeds to part-fund construction of facilities for shipbuilding and ship repair. In addition, the raised amount would be utilized by the company to enter into the offshore business used in the exploration and construction of oil & gas companies.

JM Financial, Citi group Global and Enam Securities are the book running lead managers to the issue. The issue is likely to open on September 16.