GMR revives IPO plan amidst market meltdown

18 Jul 2006

Mumbai: GMR Infrastructure has revived its IPO plans. The Rs1,100 crore offer, the first major one since Reliance's Rs2,700 crore mop-up in May 11, is expected to hit the market by month-end.

The company has already completed private placement of a large part of this amount with various local and global investors. GMR plans to mobilise Rs895 crore from the capital market through this IPO.

The price band is likely to be announced on Wednesday. The company's proposed issuance comes at time when many others have deferred their IPOs owing to unfavourable stock market conditions.

Power and infrastructure major GMR, which bagged the contract for modernisation of Delhi airport, was previously expected to launch its public issue last month.

Besides GMR, others like Development Credit Bank and Parsvanath Developers are also lining up their IPOs in the coming weeks. The IPOs, however, have been pruned and their price bands reduced in tune with market sentiment.