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Gammon India unit's IPO delayed

Gammon Infrastructure Projects Ltd's initial public offering will be delayed, as it awaits better valuations.

india Updated: Sep 28, 2006 16:15 IST

Construction firm Gammon India Ltd's initial public offering of its infrastructure unit will be delayed, as it awaits better valuations, a senior official of the unit said on Thursday.

Gammon Infrastructure Projects Ltd is waiting for the outcome of bids for projects worth Rs 170 billion, which could raise valuations sharply, its managing director, Parvez Umrigar, told Reuters.

"We will take a call on the IPO in a couple of months, based on these bids which will give us better valuations," he said.

The company had filed its draft offer document with the markets regulator in April.

Gammon India holds a 87.5 per cent stake in the infrastructure unit and US-based private equity investor Oxif holds the rest.

Gammon is also in talks with several private equity players to sell more stake in the infrastructure unit, Umrigar said.

"In all, we are looking to dilute about 20 percent of equity," he said, referring to the IPO and the private placement.

Gammon shares were down 0.13 per cent at Rs 349.50 in the Mumbai market.