GMR raises $1 bn for expansion
GMR Infrastructure raises Rs 3,965.7 crore through pvt placement to fund ongoing expansion plans and a possible acquisition in the global market, reports Arun Kumar.india Updated: Dec 12, 2007 20:25 IST
GMR Infrastructure has raised Rs 3,965.7 crore, or $1 billion, through the private placement of 9 per cent equity stake to the qualified institutional investors to fund ongoing expansion plans and a possible acquisition in the global market,.
The company is being valued at Rs 45,000 crore at this price. It has issued 16.52 crore equity shares of Rs 2 each at Rs 240, including a premium of Rs 238 per share. In July 2006, the company had entered the capital market to mop up around Rs 800 crore at a market capitalisation of Rs 6,500 crore. After the deal, the stake held by promoters in the company would come down to 74 per cent.
The resources would be used for the group's overseas acquisitions and for domestic power and special economic zone (SEZ) projects. Calling the deal as the country's largest QIP (qualified institutional placement) transaction, GMR Group chief financial officer Madhu Terdal said: "This is part of our major expansion programme aimed at becoming a $25 billion company in the medium term of 2-3 years."
Outlining the targeted deployment of the proceeds, Terdal said about Rs 300 crore would be used for an airport project in turkey, about Rs 500 crore would go to a SEZ in Tamil Nadu, and the remainder would be also used for various energy projects.