The Hindu Business Line : Gammon Infrastructure IPO price band at Rs 167-200

Mr Parvez Umrigar, Managing Director, Gammon Infrastructure Projects Ltd, with Mr Himanshu Parikh, Executive Director, at a press conference to announce the company’s IPO in Mumbai on Monday. —

Our Bureau

Mumbai, March 3 Gammon Infrastructure Projects Ltd (GIPL), a company promoted by the Gammon Group, is entering the capital market with an initial public offering of 1,65,50,000 equity shares of Rs 10 each.

The issue which is being made through a 100 per cent book-building process, opens on March 10and closes on March 13.

The price band has been fixed between Rs 167-200.

Of the total issue, 16.55 lakh equity shares have been reserved for employees. Therefore, the net issue to the public is 1.48 crore equity shares. The net issue will constitute 10.30 per cent of the post-issue paid-up equity share capital of the company.

At least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs). Further, five per cent of the QIB portion will be available for allocation to mutual funds only and the remaining QIB portion will be allotted to the QIB bidders including mutual funds.

At least 10 per cent of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 30 per cent of the net issue will be available for allocation on a proportionate basis to retail investors.

Retail investors and HNI need to pay only Rs 50 per share on application. However, NRIs have to pay 100 per cent on application. QIBs will have to pay only 10 per cent of the bid amount with the balance being payable on allocation.

The company plans to raise between Rs 276-331 crore from this IPO. The issue is being made to part-finance the investment required by its subsidiaries KBICL, GICL, MNEL and SHPVL for their projects, repayment of loan to Gammon India and investments in strategic initiatives and acquisitions.

Gammon Infrastructure currently has 13 projects for developing roads, bridges, ports, power plants and a Special Economic Zone. Of these, four projects are operational and another five are under development.

The company posted net profit of Rs 29.85 crore and a total income of Rs 158.8 crore for the year ended March 2007.

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