Financial Daily from THE HINDU group of publications
Tuesday, Jan 24, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 24, 2006 |
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Markets
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IPOs GVK Power plans IPO with a price band of Rs 260-310 Our Bureau
Mumbai , Jan. 23 GVK Power and Infrastructure Ltd (GVKPIL) will enter the capital market with an IPO of 82,75,556 equity shares. The price band has been fixed at Rs 260 to Rs 310 per equity share of Rs 10 each. The share issue, which will be sold via the book building process, will open on February 2 and close on February 7. According to a press release, the issue will constitute 35 per cent of the fully diluted post-issue paid-up capital of the company. Out of the total issue, the company will allot a minimum of 50 per cent to qualified institutional buyers, of which 5 per cent will be allocated to mutual funds. A maximum of 15 per cent and 35 per cent will be reserved for non-institutional bidders and retail investors, respectively. The company will reserve about 5 per cent of the issue or 413,778 equity shares for existing retail public shareholders of GVK Industries Ltd. GVKPIL holds 53.96 per cent of the equity capital of GVK Industries, which has interests in power, roads, urban infrastructure and manufacturing. The company proposes to utilise Rs 95.29 crore raised through the issue to contribute part of the equity required by Gautami Power Ltd (GPL), to establish a 464 MW power plant and Rs 60 crore to repay the bridge finance used for funding GPL's equity. GVKPIL currently holds 47.47 per cent equity stake in GPL. The company proposes to increase its ownership in GPL to 51 per cent by subscribing to the equity of GPL. The Gautami power plant, located in Andhra Pradesh, is expected to be commissioned by September.
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