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GVK Power cuts price on $250 mn QIP

GVK Power cuts price on $250 mn QIP
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First Published: Thu, May 03 2007. 12 32 AM IST
Updated: Thu, May 03 2007. 12 32 AM IST
Hong Kong: GVK Power and Infrastructure Ltd set a price range for its $250 million (Rs1,025 crore) qualified institutional placement (QIP), offering them at a discount of up to 5%, a person familiar with the matter said on 2 May.
GVK Power is selling shares within a range of Rs315-335, with pricing set for 9 May, with the number of shares sold depending on where the deal prices, the source said.
GVK Power shares closed on 3 April off 0.44% at Rs331.70 in Mumbai trading, putting the low end of the offering range at a 5% discount. At the high end, the shares would price at a premium of about 1%.
GVK Power shares are up nearly 15% this year and the Union cabinet approved the company’s plan to raise up to $500 million in a share sale last month.
Indian companies are increasingly turning to QIP deals since a scheme was launched in May 2006 to allow local companies to sell shares directly to certified investors, including foreigners.
QIPs are intended to encourage Indian companies to raise money onshore rather than through foreign depository shares, which had been the traditional way for big firms such as software maker Infosys Technologies Ltd to tap overseas investors and raise their global profiles.
The plan appears to be working—foreign depository share issuance from Indian companies dropped 44% last year, even as the overall equity issuance from the country hit a record $19.2 billion.
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First Published: Thu, May 03 2007. 12 32 AM IST
More Topics: Money Matters | Equities |