GMR Infrastructure to raise up to $300 mln in share sale - sources

NEW DELHI/MUMBAI (Reuters) - GMR Infrastructure Ltd said on Wednesday it is launching a share sale to institutional investors, which two sources involved in the transaction said could raise the company as much as $300 million as it looks to pay down debts.

Indian companies are expected to rush to raise cash from buoyant stock markets in the next few months. Equity markets have rallied this year on expectations that the new government - elected in May - will help spur a rebound in the country's economy.

GMR did not disclose how many shares it would issue, but the two sources said GMR is expected to raise $200-$300 million selling shares between 31.48 and 33.75 rupees apiece.

In a regulatory statement earlier on Wednesday, the company, which builds roads, operates airports and runs power plants, said it had set a floor price of 33.14 rupees per share for the issue and could offer shares at up to a 5 percent discount. Shares in GMR closed at 33.75 rupees on Wednesday.

The post-allotment dilution through the fresh share issue is likely to be 8.9 percent, the sources said.

Separately, GMR said it will also issue 180 million convertible warrants to its promoters.

(Reporting by Tommy Wilkes and Himank Sharma; Editing by Sunil Nair)