Gammon Infrastructure files DRHP with SEBI

Mumbai, Mar 31 (UNI) Gammon Infrastructure Projects Limited (GIPL), amongst the first companies in India to be modeled as an infrastructure development company incorporated by Gammon India Limited, has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) for its forthcoming initial public offering.

The Company plans to enter the capital market with a public issue of 27,151,500 equity shares of Rs 10 each for cash at a premium to be decided through a book-building process, said a press release here.

The issue shall have a green shoe option of 4,072,725 equity shares of Rs 10 each, which will constitute 17.50 per cent of the fully diluted post-issue equity capital and with the green shoe option it would amount to 19.61 per cent of the post-issue equity capital.

Out of the total offer, 2,715,150 equity shares are reserved for allotment to eligible employees of the Company. Out of the net issue to public of 24,436,350 equity shares, 60 per cent is reserved for allotment to qualified institutional buyers on a proportionate basis, of which five per cent will be allotted to mutual funds.

Further, up to 10 per cent of the net issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and the balance 30 per cent of the net issue shall be available for allocation on a proportionate basis to retail investors.

GIPL, an infrastructure development company, is currently developing roads, bridges, ports and hydro power projects and has identified the following areas for project development and infrastructure investment: urban infrastructure, airports, special economic zones, water and waste water management, railways, power transmission lines and agricultural infrastructure.

The book running lead managers to the issue are SSKI Corporate Finance Pvt Ltd, JM Morgan Stanley Pvt Ltd and DSP Merrill Lynch Ltd.

UNI SN MAZ SKB2011