By Staff writer
Dubai ports giant wins approval to set up new local holding company as it eyes $1bn investment opportunities
DP World, the largest foreign ports operator in India is planning an initial public offering (IPO) for Hindustan Ports Pvt Ltd (HPPL), its new local holding company, according to a report.
Hindustan Ports runs six terminals across the country, with a roughly 30 percent share of the market.
The Deal Street Asia website quoted an unnamed Mumbai-based banker as saying that a share sale was being considered, although no time frame or details were given.
“When all the six entities, which are currently run by separate special purpose vehicles come under HPPL, it will go for an IPO,” the banker said. “That’s the plan.”
On Thursday, the Indian government approved DP World’s plan to set up HPPL as it pushes to consolidate the ownership of its port infrastructure in the country.
Earlier this year, the firm said it was planning to invest $1 billion on investment opportunities in India.
DP World said among the investments it could consider would be new or existing terminals in the country, inland container depots or expansion of rail services for rolling stock.
The announcement came during a visit to India by the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan.
“DP World has established a leading position in the Indian market and is a pioneer in the development of container terminals,” Sheikh Mohammed said in a press statement.
“It has the biggest portfolio along the Indian coast and is looking to enhance its presence there, transferring the UAE’s experience of infrastructure development in line with our plans to enhance the strategic relations between our countries and to take them to a higher level.”
DP World has already invested $1.2 billion on its operations in India.