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Jayanta Mallick

Kolkata June 25 The Rs 2 face-valued Gammon India today slid and finished in the red (down over 2 per cent) at Rs 432 with higher than last week's average volume after gaining over 11 per cent in a five-session spell.

According to market sources, the stock declined on substantial unloading by a section of active players in the counter. Today, on the NSE it recorded a traded quantity of 6.71 lakh and on the BSE some 3.1 lakh shares changed hands.

Expectation of a decision regarding the Chennai airport revamp has supposedly been driving the stock of late, as one its subsidiary is a contract aspirant for the project.

The Prime Minister's committee of infrastructure last week decided to embark on an Rs 2,350-crore Chennai airport upgrade plan. Gammon Infrastructure Projects Ltd (GIPL), a subsidiary of Gammon India Ltd and Macquarie, a global player in infrastructure acquisition, funding and management, have already formed an alliance to bid for the development, operation and management rights for the Chennai Airport. Macquarie and GIPL hold equal stakes in the project. According to the MoU, the consortium may also look to tie up with a leading airport operator.

But SEBI's objection to a proposed fund raising exercise by GIPL continues to be an indirect dampener for the Gammon stock. Though the Securities Appellate Tribunal (SAT) on March 23, 2007, in an interim order had directed SEBI to process GIPL's draft red herring prospectus expeditiously, the market regulator is yet to respond. SEBI had on December 21, 2006, denied GIPL access to the capital market for a period of one year for alleged irregularities.

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