GMR Infra opens QIP

GMR Infrastructure Ltd has opened its qualified institutional placement (QIP) issue to raise fresh resources, according to a stock market disclosure.

The firm did not say how much shares it would issue in the offering but fixed a floor price of Rs 33.14 a share for the issue. Separate media reports said the firm may raise $200-300 million.

Simultaneously, the promoters of the company will subscribe to 18 crore warrants which would be worth around Rs 600 crore ($100 million).

The company’s shareholders had approved fundraising through issue of securities worth up to Rs 2,500 crore early this year.

GMR Infrastructure will use the money raised from QIP and preferential allotment to strengthen the financial position and repayment of borrowings as well as for capital expenditure, working capital and general corporate purposes and meeting exigencies.

GMR Infrastructure has a huge debt pile and the firm is bringing it down by way of divestment of its assets besides fresh fundraising. Recently it announced a deal to sell its entire stake in Istanbul’s Sabiha Gokcen International Airport for $308 million.

Early this year Singapore’s sovereign wealth fund Temasek, IDFC Alternatives among other private investors in GMR Energy swapped bulk of their investment in the firm with a stake in the listed parent GMR Infrastructure.

Its scrip closed at Rs 33.85 a share, down 1.74 per cent on BSE in a strong Mumbai market on Wednesday.

There has been a rush of firms floating QIPs in the wake of bounce in the stock market after elections. The firms which have scooped up money through QIP include, Yes Bank, Idea Cellular and RCOM. Several others, including Gammon Infrastructure Projects Ltd (GIPL), a public listed subsidiary of construction major Gammon India Ltd, are also raising money.

(Edited by Joby Puthuparampil Johnson)

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