Indian IPO

All details about Hot Indian Primary Market.

Wednesday, July 12, 2006

GMR Infra may price IPO at Rs 260-270 per share

GMR Infrastructure, which is building a new airport in Hyderabad and has the mandate for modernising the New Delhi airport, is likely to price its proposed initial public offering, IPO in the range of Rs 260 to Rs 270 per share reports The Economic Times.

The IPO is scheduled to hit the market by the end of July, merchant banking sources close to the development said. The proposed issue comes at time when several other issuers have deferred their plans to raise capital due to choppy conditions in the local market.

The infrastructure provider, which is also into road construction and power business, is offering 3.31 crore shares of Rs 10 each translating into 11.3% of the equity through a 100% book building process.

The company has already privately placed a chunk of capital with various local and global investors on a pre-IPO placement basis subject to a total dilution of 13.5% as net offer. GMR plans to mobilise close to Rs 895 crore (Rs 8.95 billion) through the IPO.

As part of the pre-IPO private placement, ICICI Ventures had picked up a 2.89% stake for close to Rs 250 crore (Rs 2.50 billion), while Quantum Fund had acquired 0.75% for about Rs 67 crore (Rs 670 million). Of the other investors, PNB had acquired a 0.30% stake for about Rs 27 crore (Rs 270 million), Citi group paid Rs 100 crore (Rs 1 billion) for 1.12%, which peg the valuation of GMR Infra at Rs 7,900 crore (Rs 79 billion).

The company intends to use part of the issue proceeds, besides general corporate purposes, for investment in various infrastructure special purpose vehicles, which are currently in the development stage. These include an investment of Rs 196 crore (Rs 1.96 billion) in Hyderabad and Delhi airports and another Rs 463 crore (Rs 4.63 billion) for four road projects.

JM Morgan Stanley, DSP Merrill Lynch, Enam Financial Consultants and SSKI Corporate Finance are the book running lead managers for the issue. The company currently generates all its revenues from the power and road businesses.

0 Comments:

Post a Comment

<< Home