BackGMR raises $315 mn in share sale: sources
GMR raises $315 mn in share sale: sources
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Mumbai: India’s GMR Infrastructure has raised $315 million in a share sale to mostly foreign investors, three sources with direct knowledge of the deal said on Friday.
Bangalore-based GMR, which builds and manages airports, roads and power plants, including in Europe, Mexico and Australia, received good interest and the company raised the offering size from an initially planned $250 million, they said.
Foreign investors bought 88% of the sale, with half of the total demand coming from Europe and the remaining from Asia, said one source who could not be named.
Company officials declined to comment.
GMR, which is also rebuilding and operating an airport in Istanbul, opened the sale on Thursday and had said the proceeds would be used for capital expenditure and for overseas and domestic acquisitions.
The floor price for the sale was Rs62.20 ($1.4) a share, a discount of 2.6% to Thursday’s close, two sources said.
Bank of America-Merrill Lynch was the sole global manager for the sale, while Axis Bank and IDBI Capital Markets were the other lead managers.
Last week, an arm of GMR Infrastructure raised $200 million when Singapore state investor Temasek Holdings bought a stake in unlisted GMR Energy.
In June 2009, the GMR Infrastructure had cancelled $500 million institutional placement of shares due to poor investor demand after slashing its size by four-fifths to $100 million.
GMR Infrastructure shares have jumped about 65% so far in 2010, while the benchmark BSE share index has been little changed.
At 0612 GMT, shares in GMR Infrastructure were trading down 0.9% at Rs63.25 rupees in a Mumbai market that was down 0.3%.
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