Engineering company Punj Llyod on Wednesday said it will raise Rs 814 crore from domestic and overseas market to finance the Pipavav Shipyard Project in Gujarat.

The Delhi-based company would raise the money through qualified institutional placement (QIP) of 2.9 crore shares at Rs 275 each, Punj Llyod Director (Finance) Ravi Keswani told media.

"Out of Rs 814 crore, about Rs 400 crore will be invested for the acquisition of a 25.1 per cent stake in Pipavav Shipyard Project, where Punj Lloyd is a co-promoter," Keswani said.

Nikhil Gandhi is the other promoter with a 26 per cent stake. "AIG, New York Life, Indus Capital, Axim Bank are the institutional investors among others in the Pipavav Project," Keswani said.

He said Rs 180 crore would be invested for real estate development, while the remaining amount would be kept for future use by the company. Pipavav Shipyard can be used for fabrication of vessels for petrochemicals and refineries.

"We need some capability to exploit the future ventures and this offshore platform fabrication facility will provide that," Keswani said.

Punj Lloyd had earlier announced it would acquire a 25.1 per cent stake in Pipavav Shipyard, a Sea King Infrastructure (SKIL)-promoted company, for Rs 403 crore to boost its offshore business.