GMR Infra withdraws USD 500 mn QIP issue | business | Hindustan Times
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GMR Infra withdraws USD 500 mn QIP issue

business Updated: Jun 30, 2009 16:50 IST
GMR Infrastructure

GMR Infrastructure on Tuesday withdrew its proposed USD 500-million (about Rs 2,500 crore) qualified institutional placement issue due to unfavourable market conditions.

"The management committee of the board of directors of the company have decided to withdraw the QIP in light of existing market conditions," GMR Infra said in a filing to the Bombay Stock Exchange.

The management committee of the board had earlier decided to allot shares on June 29 to qualified institutional buyers (QIBs) pursuant to the shareholders nod earlier this month for raising up to Rs 5,000 crore.

"We wanted to raise about USD 500 million as growth capital...not that we needed the fund immediately," GMR Infra CFO Subba Rao told CNBC-TV18.

He said the company has close to Rs 2,000 crore in cash and the ongoing projects have been funded already and does not need any capital immediately.

The company will raise further capital "at an appropriate time in future...We will look at several options, not necessarily QIP," Rao said.

Shares of GMR Infra plunged nearly nine per cent to settle at Rs 141.65 at the end of trade Tuesday on the BSE.