MUMBAI: A volatile market and bearish investor sentiment notwithstanding, infrastructure firm Gammon Infrastructure Projects (GIPL), a Gammon group company, on Monday announced its decision to raise Rs 300 crore via an IPO. “Given that the infrastructure growth in India is still in its infancy, we have a long way to go,” GIPL managing director Parvez Umrigar told ET.
The company is offering 16.55 crore equity shares at a par value of Rs 10 each for cash, which will be determined through a 100% book-building process. The issue will open for subscription between March 10 and March 13. The price band has been fixed between Rs 167 and Rs 200 per equity share.
The company is also offering part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date. The recent trend in the primary market clearly leaves a question mark on the success of the issue.
At the upper band, the company is asking a price-earnings (P/E) multiple of over 100 based on company’s FY08 estimated earnings. This is almost three times the current valuation enjoyed by its peers such as L&T and IVRCL Infrastructure.
GIPL undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis.
The company is offering 16.55 crore equity shares at a par value of Rs 10 each for cash, which will be determined through a 100% book-building process. The issue will open for subscription between March 10 and March 13. The price band has been fixed between Rs 167 and Rs 200 per equity share.
The company is also offering part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date. The recent trend in the primary market clearly leaves a question mark on the success of the issue.
At the upper band, the company is asking a price-earnings (P/E) multiple of over 100 based on company’s FY08 estimated earnings. This is almost three times the current valuation enjoyed by its peers such as L&T and IVRCL Infrastructure.
GIPL undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis.
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