Mumbai-based Gammon Infrastructure Projects (GIPL), an infrastructure development company, fixed the issue price at floor price of Rs 167 a share after receiving moderate response to its initial public offering which subscribed 3.48 times on closing.
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.
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.