Business Daily from THE HINDU group of publications
Tuesday, Aug 01, 2006
Business Daily from THE HINDU group of publications Tuesday, Aug 01, 2006 |
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Markets
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IPOs Our Bureau
Offer details Company offered 3.81 crore equity shares of which 60% is for QIBs Price band is Rs 210-250 Issue open till August 4
Mumbai , July 31 The public issue of GMR Infrastructure Ltd has been subscribed 1.58 times on the first day of issue. The qualified institutional bidders portion meant for foreign investors has been subscribed around three times, according to market sources. Almost 18 institutional bidders bid on the first day. The company has offered 3.81 crore equity shares, of which 60 per cent is for QIBs, 10 per cent for non-institutional investors and the remaining 30 per cent for retail investors. The net offer to public constitutes 11.37 per cent of the fully diluted post issue paid-up capital of the company. The price band for the IPO has been fixed at Rs 210 - Rs 250 and the issue closes on August 4. "The response to the IPO has been above our market expectations," said a market source. The source added that bids have been received across the price band on the first day. "We are waiting to see how the market reacts to the new IPO and will procure our bids on the last two days of the issue," said a broker of a leading stock broking firm. However, a section of the market feels that the issue pricing has been steep giving the earnings visibility of the company. The company intends to amass around Rs 950 crore based on the top end of the price band. The company will use the amount for investments in various infrastructure special purpose vehicles that are currently in the development stages and repayment of unsecured loans.
Pre-IPO placement
In pre-IPO placements, 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 of its equity 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 the stake at Rs 270 a share, ICICI Venture had bought its shares at Rs 261 a share. Infrastructure Development Finance Corporation (IDFC) which had also invested in the Company will hold 3.55 per cent of the post issue capital. JM Morgan Stanley Pvt Ltd, ENAM Financial Consultants Pvt Ltd., DSP Merrill Lynch Ltd and SSKI Corporate Finance Pvt. Ltd are the book running lead managers and Karvy Computer share is the registrar to the issue.
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