The Hindu Business Line : GMR Infra withdraws QIP offer

Bangalore, June 30 GMR Infrastructure Ltd informed the Bombay Stock Exchange on Tuesday that it has decided to withdraw its QIP (qualified institutional placements) because of various reasons, including poor market conditions.

The company had launched the issue to raise Rs 2,500 crore and was hoping to garner good response. But the Sensex closed down about 290 points on Tuesday.

This was a signal for other Asian markets also and the company felt it was better to withdraw the issue.

According to Mr A. Subba Rao, CFO of GMR Group, though pricing was one of the reasons, the company decided to postpone the QIP essentially because of the weak market.

On whether the company would have contemplated going ahead with a discount in pricing, Mr Rao said: “We cannot sell anyway below the base price fixed by SEBI, which is Rs 142.”

He said the company has decided about a fresh date for the QIP. The company’s stocks on the BSE traded at Rs 141.65 on Tuesday, 8.79 per cent lower than the previous close of Rs 155.30.

GMR was looking at raising money for funding its future projects.

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