Mumbai: Gammon Infrastructure Projects, a unit of construction firm Gammon India Ltd, will offload 20% equity through an initial public offer (IPO) and a foreign convertibles issue.
“We will be filing red herring prospectus for an IPO in the next 45 days,” company Managing Director Parvez Umrigar said, adding the offer will comprise 10% stake sale.
Gammon Infrastructure had earlier planned an IPO for 205 stake sale. The company will now exercise the option of raising money through issue of foreign convertibles as well.
This move follows an interim order by Securities Appellate Tribunal (SAT) directing SEBI to process Gammon Infrastructure’s draft red herring prospectus expeditiously.
Gammon Infrastructure is presently valued at Rs280 crore and proposes to take the value to Rs1,000 crore, almost the same value of its holding company Gammon India, Umrigar told PTI.
The debt-free company had diluted 12.5% to US-based fund Ochziff two years ago.