Gammon Infra IPO opens on Mar 10

MUMBAI: Gammon Infrastructure Projects Ltd is entering the capital market with its initial public offering of 1,65,50,000 equity shares of Rs 10 each for a price to be determined through book building process.

The issue will open on Mar 10, and close on Mar 13. The price band has been fixed between Rs 167 and Rs 200 per share. The issue has been graded by Credit Analysis & Research as CARE IPO Grade 4, indicating above average fundamentals.

The issue comprises net issue of 1,48,95,000 shares to the public and a reservation of 16,55,000 shares for eligible employees. The issue and the net issue will constitute 11.45 per cent and 10.30 per cent respectively of the post-issue paid up capital.

At least 60 per cent of the net issue will be allocated to qualified institutional buyers. Further, 5 per cent of the QIB portion will be available for allocation to mutual funds only. At least 10 per cent of the net issue will be available for allocation to non-institutional bidders and at least 30 per cent to retail investors.

Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per share. And the balance payable shall be paid by the due date.

Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100 per cent of the bid amount, and, in the case QIBs, will be 10 per cent of the bid amount with the balance being payable on allocation.

Gammon Infrastructure Projects is an infrastructure project development company promoted by the 85-year old Gammon Group. Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.

The Issue proceeds will be utilised to:

��� contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;

��� for the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;

��� for the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;

��� for infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;

��� repayment of loan to Gammon India and general corporate purposes and investment in strategic initiatives and acquisitions.