The Hindu Business Line : GMR Infra may sell 2 pc equity for Rs 200 cr

Pre-IPO placement
GMR is holding talks with Citigroup, Temasek Holdings, Chrysalis Capital, Standard Chartered, Ochziff and Blackstone.
The placement is expected to be completed in a fortnight.

Hyderabad , May 16

Having successfully placed 3.5 per cent of its equity with ICICI Ventures for Rs 250 crore and 4.25 per cent with Infrastructure Development Finance Corporation through a swap deal recently, GMR Infrastructure Ltd, the Bangalore-based power and infrastructure major, is negotiating with four-five private equity and global hedge funds for the third round of pre-IPO private equity placement.

According to sources in the know, GMR Infrastructure is at an advanced stage of negotiations with three private equity and global hedge funds for privately placing close to two per cent of the equity for raising around Rs 200 crore.

Further, sources said the entities with which GMR is holding talks include Citigroup, Temasek Holdings, Chrysalis Capital, Standard Chartered, Ochziff and Blackstone. The placement is expected to be completed in a fortnight or so, they said.

When contacted, the GMR officials told Business Line, "The third round of private placement is at a premature stage. We are seriously negotiating with four to five entities, of which talks are at an advanced stage with three entities. We are now negotiating for best deal with them. We may go in for private placement with two entities this round."

Aimed at raising over Rs 1,000 crore through an initial public offer (IPO), GMR Infrastructure recently filed a draft red herring prospectus with the Securities and Exchange Board of India. The company proposes to offer 4.53 crore equity shares of Rs 10 each, constituting 13.69 per cent of the fully diluted post-issue paid-up capital.

According to the GMR Chief Financial Officer, Mr Madhu Terdal, "The company is actively considering to privately place equity with certain investors prior to the completion of the IPO. In such a case, the IPO size offered to the public would be reduced to the extent of private placement. However, the public would be offered a minimum of 10 per cent of the post-issue capital."

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