The Hindu Business Line : GMR Infrastructure fixes IPO price band at Rs 210-250

NEW ISSUE: Mr G.M. Rao (right), CMD, GMR Infrastructure Ltd, with Mr P.B. Vanchi, Director, at a press conference to announce the company's public issue in Mumbai on Wednesday. - Paul Noronha

Mumbai July 19

GMR Infrastructure, which is engaged in developing airport, power and road projects, will be entering the capital market on July 31 with a public issue of 3.81 crore equity shares of Rs 10 each.

The price band has been fixed at Rs 210 to Rs 250 per equity share.

The issue is being made through the 100 per cent book-building process, with an allocation of at least 60 per cent of the issue size to qualified institutional buyers, while 30 per cent of the issue would be available for allocation to retail bidders on a proportionate basis.

The issue price determined on the completion of the book- building process for retail bidders and bidders in the employee reservation portion (for bids up to Rs 1 lakh) would be at a 5 per cent discount to the issue price.

GMR Infrastructure owns 63 per cent of GMR Hyderabad International Airport Ltd, which is developing the Greenfield Hyderabad airport.

Also, a consortium led by GMR, consisting of Fraport AG, Malaysia Airports Holdings Berhad and India Development Fund, was awarded a long-term agreement of 30 years to operate, manage and develop the brownfield Delhi airport.

GMR Infrastructure has placed 2.89 per cent of the post-issue equity with ICICI Venture for Rs 250 crore, 1.11 per cent with Citigroup Venture Capital for Rs 99.17 crore, 0.75 per cent with George Soros Promoted Quantum Fund for Rs 67.25 crore and 0.30 per cent with Punjab National Bank for Rs 27 crore.

While Citigroup, Quantum and PNB had picked up the stake at Rs 270 a share, ICICI Venture had bought it at Rs 261 per share.

Mr G. Mallikarjun Rao, Chairman, said the company would be bidding for airport projects in India in the future.

GMR Infrastructure at present generates a substantial part of its revenues from the power and road business.

"The company is also seeking to enter the power trading, transmission and distribution business in India," he said.

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GMR Infrastructure fixes IPO price band at Rs 210-250