The GMR group has announced plans to enter the capital market by end-June to raise between Rs 1,200 crore and Rs 1,500 crore through an initial public offer (IPO) to finance its all ongoing and future projects. The power and infrastructure major has filed a draft prospectus for its IPO with the securities and exchange board of India (Sebi). "We intend to go with the issue either by June-end or early July through the book-building process after obtaining the requisite clearances from the SEBI," Madhu Terdal, chief financial officer of GMR, said.The company intends to use part of the issue proceeds for investments in GMR Hyderabad International Airport, Delhi International Airport and four expressways. Another portion of the funds will go towards the repayment of unsecured loans (Rs 56 crore), payment of sundry creditors and for general corporate purposes."About Rs 299 crore will be used to pay for the acquisition of 100% equity stake in the GVL Investments, which holds 9% stake in the Delhi airport. The acquisition of the GVL will enable us to acquire a majority stake (50.1%) in Delhi airport," Terdal said.The infrastructure projects to be funded are: the 35 km Ambala-Chandigarh road on the Delhi-Chandigarh highway (NH 21/22) at an estimated cost of Rs 100 crore; the 86 km Pochanpalli state highway from Adloor Yellareddy to Kalkallu in Andhra Pradesh (Rs 119 crore); the 46 km Jadcherla state highway from Faruknagar near Hyderabad (Rs 94.8 crore) and the 73 km Ulundurpet state highway from Trindivanam in Tamil Nadu (Rs 145 crore). Institutional investors such as ICICI, Quantum M of George Soros and IDM of Infrastructure Development Finance Company hold a minority stake in the GMR group holding firm. "We have already raised Rs 325 crore in the first round of funding in which ICICI paid Rs 260 crore for 4.2% equity stake (95 lakh shares) and Quantum paid Rs 65.5 crore at a premium of Rs 260 for Rs 10 per share. Another 4.15%stake was picked up by IDM in the second round of funding," Terdal added.
