Private sector Pipavav Shipyard, today opened at Rs 61.10 on the National Stock Exchange, a premium of 5.34 per cent to the issue price of Rs 58.
On the Bombay Stock Exchange, the scrip opened 3.54 per cent up at Rs 60.05, went up to Rs 64.7 before declining to a low of Rs 57.75 in initial trading.
The company entered the primary market with a total issue size of 8.54 crore shares at Rs 58 a piece.
During the early morning trade a total of over 1.40 crore shares of Pipavav Shipyard changed hands on both the bourses. The IPO was subscribed almost nine times and raised over Rs 495 crore with the issue of over 85.45 million equity shares of Rs 10 each.
"We want to tap orders from major sectors like oil and gas and defence. The company has put tenders worth Rs 7,500 crore for defence projects," Pipavav Shipyard Chairman Nikhil Gandhi said.
He also said that the company intends to use the IPO proceeds for construction of facilities for shipbuilding, ship repair and the offshore business. The company has already bid for seven naval vessels.