Gammon Infrastructure Projects (GIPL) IPO to hit market on Mar. 10

Mumbai-based Gammon Infrastructure Projects (GIPL), an infrastructure development company, came out with initial public offer to raise maximum of Rs 3.31 billion to fund its expansion plans. The company priced its issue in the range of Rs 167 to Rs 200 a share. The issue opens on March 10 and closes on March 13. The shares of the company will listed on BSE and NSE both.

GIPL intends to deploy the issue proceeds to fund 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; to contribute to a part of the investment required by GICL, our 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; to contribute to a part of the investment required by SHPVL, our subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim; 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 GIL; investment in strategic initiatives and acquisitions and general corporate purposes.

The book running lead manager to the issue is DFC-SSKI and Macquarie India Advisory Services. The issue is being made through the 100% book building process where upto 60% of the net issue to the public shall be allocated on a proportionate basis to qualified institutional buyers (QIB). A total of 5% of the QIB portion shall be available for mutual funds and the remainder of the QIB portion shall be available for all QIBs, including mutual funds.

Further, atleast 10% of the net issue to the public shall be available for non-institutional bidders and atleast 30% of the net issue to the public shall be available for retail individual bidders.

GIPL was incorporated in April 2001 as Gammon Infrastructure Projects and Investments; a public company with limited liability. It subsequently changed its name to Gammon Infrastructure Projects in April 2002. The main shareholders of the company are Gammon India, and AMIF. GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis through its special purpose vehicle companies.