Gammon plans $100-million share issue: report
22 May 2009
Gammon Infrastructure Projects Ltd plans to raise about $100 million through a share sale once market sentiment improves, to bolster its net worth for larger projects, a top official reportedly said today.
The company, which holds rights to build and operate 14 projects in road, power and port sectors, does not need additional funds for its existing ventures in the near future as it holds cash balances of about Rs150 crore. But "if the market sentiment improves we wouldn't wait to strengthen our balance sheets further," managing director Parvez Umrigar told Reuters.
By roughly doubling the company's net worth, Gammon Infrastructure would be able to gear itself for a larger infrastructure push. "For the sheer opportunity we see, as well as for gearing yourself up for better market times, we would look at doubling the net worth," Umrigar said.
The preferred route of equity dilution has not been selected yet, but a preferential placement or a qualified institutional placement could be considered, Umrigar said.
According to the Bombay Stock Exchange, Gammon India directly held 70 per cent in Gammon Infrastructure as of March end.
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