Mahindra Gesco raises US$ 105 mn through QIP issuance

Mumbai, Oct 5 (UNI) Mahindra Gesco Developers Ltd (MGDL), a leading real estate and infrastructure developer, has successfully closed its US$ 105 million Qualified Institutional Placement(QIP).

MGDL's QIP, which was opened for investors on September 29, 2006 and closed on October 4, 2006, received a strong demand of more than US$ 160 million at a price of Rs 800 per share and above. The placement received participation from a wide segment of investors such as FIIs, Mutual Funds, Banks and Insurance companies.

The QIP priced at Rs 800 per share worked out to around One(1) per cent premium to the two-week average market price prior to the issue opening date.

MGDL, a Mahindra&Mahindra Group company, is currently focused on residential projects and integrated infrastructure development in SEZs(special export zones). It has so far developed over 3.54 million sq. ft. of residential and commercial space excluding SEZs, and is currently developing residential and commercial space in Mumbai, Chennai, Pune, Gurgaon and Pimpri.

It has also developed Mahindra World City, Chennai, which is the only operational SEZ with private sector participation. MGDL is now planning to develop and has received in-principle/formal approvals for SEZs at Jaipur, Karla in Maharashtra and Thane near Mumbai.

Kotak Investment Banking acted as the Global Coordinator and Sole Book Runner for this QIP. Its Managing Director Ms Falguni Nayar said, ''MGDL's QIP issuance is the largest such issue from India under the new SEBI regulations and one of the largest issuance in the real estate and SEZ sector. The Issue has reaffirmed global investor interest in the Company and firmly established QIPs as a preferred route of large size equity financing for listed companies''.

UNI SN PM SKB1822