Gammon Infrastructure Projects to list on Thursday

MUMBAI: Shares of Gammon Infrastructure Projects will list on Thursday on Bombay Stock Exchange and National Stock Exchange. The company had fixed the issue price of its initial public offering of 1,65,50,000 shares, of Rs 10 each, at Rs 167 per share.

The issue closed on March 13 with subscription of 3.48 times. Qualified institutional bidders subscribed 5.17 times the number of shares allocated to them, non-institutional bidders��� portion was subscribed 3.79 times. Retail investors subscribed 1.07 times the 1,48,95,000 shares apportioned.

Promoted by the Gammon Group, the company undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.

Asit C Mehta had advised investors to ���ignore��� the initial public offering of Gammon Infrastructure. At the lower band of Rs 167 P/E is 110.16x and the upper band of Rs 200 P/E is 131.92x for post equity annualized earning per share of Rs. 1.52 for 2007-08. Considering the visibility of revenue coming after 2009-10 and comparing to its peer, issue looks very highly priced, the brokerage had said.