GPIL announces IPO of 1.65 crore equity shares

March 7, 2008

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CHENNAI: With an aim to fund some of its major projects in India, Gammon Infrastructure Projects Limited (GPIL) on Friday announced an initial public offering of 1.65 crore equity shares of par value Rs 10 each for a cash price to be determined through a 100 per cent book-building process (Issue). The price band has been fixed between Rs 167 and Rs 200 pewr equity share. Pervez Umrigar, Managing Director, GPIL, told reporters here today that the Issue’s proceeds would be utilised in the design, construction and maintenance of projects including the four-laning of the 99.5 km of Vadape-Gonde section between Mumbai and Nasik on NH-3, being developed and maintained by the special purpose vehicle (SPV), the Mumbai Nasik Expressway Limted (MNEL). “We currently have 14 infrastructure projects, including the Vishakaptanam port project in Andhra Pradesh and Mattanchery bridge project in Kerala among others in the operation phase, with respective special purpose vehicles (SPVs) in place to develop and maintain them,” Umrigar said. The Rangit-II hydroelectric power project on River Nimbi in Sikkim, and the MNEL among others were in the development phase, he added. According to a company release, the Issue comprises a net issue of 1.49 crore equity shares to the public (Net Issue) and a reservation of 16.55 lakh equity shares for employees. While at least 60 percent of the Net Issue will be allocated on a proporationate basis to Qualified Institutional Buyers (QIB), at least 10 percent of the same would be available for non-institutional bidders and 30 percent of the Net Issue for retail investors on proportionate basis. The issue opens on March 10 and closes on March 13, 2008. Source: http://economictimes.indiatimes.com