GMR Infra offers 5% discount to retail investors

Retail investors are be eligible to get five per cent discount in the forthcoming public offer of GMR Infrastructure. The company has reserved 500,000 equity shares for its employees.

Retail investors can apply for this offer, which will hit the market on July 31, for Rs 125 a share. The price band of the offer has been at Rs 210"�250.

However, investors can pay the full amount of the application, if they want to. The issue of 37,636,980 equity shares will close on August 4.

The price band is lower than the rate the company received from private equity investors. While Citigroup, Quatum and PNB had picked up stake at Rs 270 per share, ICICI Venture had bought shares at Rs 261 apiece.

GMR had placed 2.89 per cent of the post issue equity with ICICI Venture for Rs 250 crore, 1.11 per cent with Citigroup Venture Capital for Rs 99.17 crore, 0.75 per cent with George Soros promoted Quantum Fund for Rs 67.25 crore and 0.30 per cent with Punjab National Bank for Rs 27 crore.

The company is into in airport, power and road projects. The company intends to use part of the issue proceeds for investments in various infrastructure special purpose vehicles, which are currently in the development stage.