GMR revives IPO plan

GMR Infrastructure is gearing up to launch its initial public offer (IPO) by this month-end, following some stability in the markets. The Bangalore-based company was supposed to tap the primary market last month.

GMR Infrastructure will offer 3.31 crore equity shares of Rs 10 each constituting 11.30 per cent stake, post issue, through 100 per cent book building. The price band will be finalised later part of this week.

"The company is planning to raise over Rs 800 crore to Rs 900 crore. The company has raised over Rs 450 crore via pre-IPO placement," sources close to public issue said.

"The company is planning roadshows in Mumbai and New Delhi early next week. Post-IPO, promoter holding of the company will be 79.5 per cent," sources said. GMR group head - strategic finance, Madhu Terdal, declined to comment.

The company intends to use part of the issue proceeds, besides for general corporate purposes, for investment in various infrastructure SPVs which are currently in development stage. These include investment of Rs 196 crore in Hyderabad and Delhi airport and Rs 463 crore for four road projects.

The company currently generates all its revenues from the power and road businesses. The company is also developing an international airport at Hyderabad and has been awarded to operate, manage and develop the Delhi Airport.

As part of pre-IPO private placement, earlier ICICI Ventures had picked up 2.89 per cent stake for Rs 250 crore in the company before filing of the DRHP with Sebi. Citigroup had acquired 1.12 per cent stake for over Rs 100 crore.

Quantum Fund had acquired 0.75 per cent stake for Rs 67 crore and PNB had acquired 0.30 per cent stake for Rs 27 crore.

At present, India Development Fund, a fund managed by IDFC Private Equity, has nearly four per cent stake in GMR Infrastructure via internal swapping. IDF has swapped its 15 per cent stake in GMR Energy for stake in GMR Infrastructure.

JM Morgan Stanley, DSP Merrill Lynch, Enam Financial Consultants and SSKI Corporate Finance are book running lead managers to the issue.