GMR Infrastructure puts off share sale
30 Jun 2009
GMR Infrastructure has cancelled a planned sale of shares, worth around $100 million, to qualified institutional investors (QIPs) due to poor investor demand, the company informed the Bombay Stock Exchange in a filing.
GMR Infrastructure had slashed the size of its proposed stake sale by four-fifths to $100 million, sources close to the deal said.
GMR Infrastructure informed BSE on that management committee of the board of directors of the company, on 30 June 30, decided to withdraw the QIP in the light of the existing market conditions.
The firm had launched a $500 million share sale on Monday amid a flurry of equity offers by Indian firms worth nearly $2 billion.
The management committee of the board of directors of GMR Infrastructure Ltd had, at its meeting on 29 June, been authoried by the company's shareholders under section 81(1A) and other applicable provisions of the Companies Act, 1956, to make an issuance of equity shares of face value Rs2 each of the company to Qualified Institutional Buyers. The management committee had also approved the preliminary placement document in respect of the equity shares proposed to be issued as aforesaid," GMR said in its filing with the BSE.
Meanwhile, the board of directors of GRM Overseas Ltd has, at its meeting held today, inter alia, recommended dividend of 20 per cent (ie, Rs 2 per equity share of Rs10 each), subject to approval of the shareholders in the ensuing annual general meeting, the company said in a filing with the BSE.