Gammon Infra IPO To Hit St On March 10

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.

Gammon Infrastructure Files IPO Papers

MUMBAI: Gammon Infrastructure Projects, a subsidiary of Gammon India has filed papers for the initial public offer of 1,65,50,000 equity shares of face value Rs 10 each.

The issue comprises 1,48,95,000 shares to the public and a reservation of 16,55,000 shares to eligible employees.

The IPO is being made on 100 per cent book building proces, with the price band of Rs 167- 200. The issue will remain open from March 10, 2008 to March 13, 2008.

On Thursday, Gammon India shares closed down 0.17 per cent at Rs 504.75

Gammon Infra To Go Ahead With IPO Plans

MUMBAI: Unfazed by two major companies, Emaar and Wockhardt Hospitals, withdrawing their initial public offers, Gammon Infrastructure Projects today said it will go ahead with its plans to tap the capital market.

"Yes, we are going ahead with the IPO. Our merchant bankers have advised us to go ahead with the issue," Gammon Infrastructure Managing Director Parvez Umrigar told reporters.

Though the company has not revealed how much it will raise, according to indications in the market it would be around Rs 300-500 crore.

Emaar and Wockhardt Hospitals withdrew their IPOs earlier this week. Emaar planned to raise Rs 6,400 crore while Wockhardt Hospitals was planning to mop up Rs 650 crore.

"Infrastructure continues to be the favoured sector for investment. We are raising a small amount. So we should not face any problems," Umrigar said.

On Monday, Gammon Infrastructure would file with the Registrar of Companies and once it gets the nod it would announce the price-band of the IPO.

At present, promoters hold 90.5 per cent in Gammon Infrastructure. The current share capital of 12.8 crore would increase by 1.65 crore after IPO, taking the total share capital to 14.45 crore.