GMR eyes to power distribution sector in UP

Lucknow, July 26: GMR Infrastructure Limited, the holding company of GMR Group, today said that the company is interested in the power distribution sector in Uttar Pradesh.

Speaking to the media at a roadshow of its IPO, slated to open from July 31 next, GMR Group executive vice-president Ranjan Krishnan said that the company was interested in taking an active part in the power distribution sector in UP.

Though the officials maintained that they were not interested in putting up a new power plant in the state, they stressed that the company would certainly go for the power distribution in the state, once the centre makes the policy transparent for the private sector.

Mr Krishnan said they seek to expand the airport business through selectively bidding on new projects based on projected costs, location and rate of return.

In addition to the Chennai and Kolkata airports, the company also intends to participate in airport projects in Asia, mostly in South East Asian countries.

The group, which already has been awarded the brownfield Delhi Airport Project and the greenfield Hyderabad Airport Project, declared that it would also bid when the privatisation of the Kolkata and Chennai airports are offered by the Airport Authority of India (AAI).

The Hyderabad Airport Project under private-public partnership was awarded on December 20, two years back, and control of Delhi International Airport was given on May 3, this year after legal wrangling.

Talking about the IPO, the officials said GMR Infrastructure will enter the capital market on July 31 with a public issue of 38,136,980 equity shares of Rs 10 each. Out of which, 500,000 equity shares would be reserved for the eligible employees and 37,636,980 equity shares would be offered to the public.

The net offer to public would constitute 11.37 per cent of the fully diluted post issue paid up capital of the company. The price band has been fixed at Rs 210 to Rs 250 per equity share.

The issue, which will close on August 4, is being made through a 100 per cent book building process with an allocation of at least 60 per cent of the issue size to Qualified Institutional Buyers (QIBs). Of the 60 per cent allocated to QIBs on a proportionate basis, five per cent would be proportionately allocated to mutual funds.

Not less than 10 per cent of the issue would be available for allocation to non-institutional investors, while the remaining 30 per cent of the issue would be available for allocation to retail bidders on a proportionate basis.

UNI