Gammon Infrastructure Projects Ltd (GIPL), a public listed subsidiary of construction major Gammon India Ltd, is looking to raise up to Rs 500 crore ($83.08 million) via qualified institutional placement (QIP), as per a stock market disclosure.
"The board of directors of the company at its meeting held on June 20, 2014, has approved, subject to the approval of shareholders, a qualified institutional placement issue of equity shares or equity linked instrument up to Rs 500 crore," the company said.
The money will be mainly used for completion of some current projects and to reduce its debt.
Founded in 2001, GIPL is an infrastructure development company which offers development of infrastructure, development of project, project advisory, sector specific operations and maintenance of roads and expressways, ports, hydro power, urban infrastructure, airports, special economic zones, water and wastewater management, railways, power transmission lines and agricultural infrastructure.
The infrastructure firm posted a loss of Rs 39.2 crore on net revenues of Rs 211.2 crore for the quarter ended March 31, 2014.
The bounce in the stock market after the general elections has provided a much delayed window for many firms to look at QIPs to raise resources.
Recently, Yes Bank, Idea Cellular and KSK Energy Ventures raised money through QIPs.
(Edited by Joby Puthuparampil Johnson)
