GMR IPO oversubscribed on opening day

Mumbai: Infrastructure major GMR Infrastructure Ltd has successfully weathered choppy markets with its initial public offer (IPO) reporting oversubscription on the opening day itself.

GMR's initial public offer of 38,136,980 equity shares of Rs0 each in the Rs210-250 price band, which opened on August 1, was subscribed 1.6 times on the first day itself. Most of the bidding was done by institutional investors, with 18 of them bidding on the opening day.

With bids over Rs 1,400 crore coming in, the portion of public issue reserved for foreign investors within the qualified institutional buyers' quota was oversubscribed 2.5 times at the end of the day, investment banking sources said.

The IPO, issued through the 100 per cent book-building route, saw 50 per cent of it being subscribed by qualified institutional investors (QIBs) at the top end of the price band at Rs250. While PNB, Citigroup and Quantum quoted Rs270 per share, ICICI Venture quoted Rs261 per share.

The net offer to public constitutes 11.37 per cent of the fully diluted post issue paid-up capital of the company.

GMR Infrastructure has already placed 2.89 per cent of the post-IPO equity with ICICI Venture for Rs250 crore, 1.11 per with Citigroup Venture Capital for Rs 99.17 crore, 0.75 per cent with George Soros promoted Quantum Fund for Rs67.25 crore and 0.30 per cent with Punjab National Bank for Rs27 crore. Infrastructure Development Finance Corporation (IDFC) which had also invested in the company will hold 3.55 per cent of the post-issue capital.

GMR Infrastructure, a major infrastructure company in the country, has interests in airports, power and road projects. The company intends to use part of the issue proceeds for investment in various special purpose vehicles for ongoing infrastructure projects.

The issue is being managed by JM Morgan Stanley Private Limited, DSP Merrill Lynch Limited, Enam Financial Consultants Private Limited and SSKI Corporate Finance Private Limited. The issue will close on August 4, 2006.