GMR's IPO opens on July 31, price band fixed at Rs 210-250

New Delhi, July 20 (UNI) GMR Infrastructure, which has bagged the contract for modernising Delhi international airport, is planning to enter the capital market on July 31 with an intial public offering (IPO) of 38,136,980 equity shares of Rs 10 each.

The price band of the issue closing on August 4 has been fixed at Rs 210 to 250 per share.

JM Morgan Stanley, DSP Merrill Lynch, Enam Financial Consultants and SSKI Corporate Finance are the book running lead managers for the isssue.

Retail investors and employees will be offered the shares at a five per cent discount to the final issue price. The company has secured airport development orders in Delhi and Hyderabad.

It operates 440 megawatts of electricity generation capacity and is adding another 500 megawatts. It also has several highway construction projects.

''We need to raise money to fund our expansion plans. We will soon start bidding for more road projects, and also plan to get into power transmission projects,'' said company's director P B Vanchi.

The book-built offer, representing about 11.5 per cent of the post-issue capital, will help raise Rs 954 crore, valuing the firm at Rs 8,277 crore rupees at the top end of the price band.

Earlier this year, GMR raised around Rs 450 crore by placing shares with several private equity funds. Its top-end price of Rs 250 a share is lower than the Rs 261 paid by a private fund of ICICI Bank during the placement.

''The overall (stock) market has come down, so we have appropriately reduced the price,'' said Mr Vanchi. ''This should make the price attractive as we are offering a combined play in airports, roads and power projects.'' UNI SU RA PM1516