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.

Wockhardt Cuts IPO Price Band On Mkt Woes

Mumbai: Wockhardt Hospitals has slashed the price band of its initial public offering of shares. The price band is now Rs 225-Rs 260 per equity share, The earlier price band was Rs 280-Rs 310 per equity share. The issue opens on January 31 and closes on February 5.

Wockhardt Hospitals To Float IPO

Mumbai: Wockhardt Hospitals (WHL) plans to float an initial public offer (IPO). The company, which was started with a hospital at Kolkata in 1989, is planning to expand its number of hospitals from 15 to 31 in two years. WHL has already put in around Rs 500 crore for setting up the greenfiled and brownfield facilities, and require another Rs 600 crore for its completion. Wockhardt will issue 2.5 crore equity shares of Rs 10 each for cash at a price band to be determined through 100 per cent book building process.

The issue will open on January 31, 2008, and close on February 5, 2008. The price band has been fixed between Rs 280 and Rs 310 a share. The offer comprises a net issue of 24,587,097 equity shares of Rs 10 each to the public and a reservation of up to 5 lakh shares for subscription by eligible employees. The net issue will be allocated to the qualified institutional buyers (QIBs) on a proportionate basis. Khorakiwala said the management of Wockhardt Hospitals will watch the developments in the stock markets in the coming days. Wockhardt Hospitals, part of pharmaceutical and biotechnology company Wockhardt, is setting up new hospitals in the south and north of Mumbai, Delhi, Bangalore and Kolkata, and plans brownfield hospitals in tier-II cities such as Goa, Bhopal, Nashik, Bhavnagar, Ludhiana, Jabalpur, Bhuj, Patna, Hubli and Varanasi. The joint global co-ordinators and book running lead managers to the issues are Citigroup Global Markets India and Kotak Mahindra Capital Company. ICICI Securities and SBI Capital Markets are the book running lead managers.