Gammon Infra looks to raise fund via private placement

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Gammon Infra looks to raise fund via private placement

Gammon Infrastructure Projects, the infrastructure arm of Gammon India, is looking at raising Rs5 billion (US$83.5 million) via a qualified institutional placement (QIP) for completion of current projects and to retire part of its debt.

According to sources, Gammon Infrastructure Projects would retire Rs1 billion (US$16.7 million) of debt and use the balance funds to complete projects over the next 6- 9 months.

The current projects to be funded by the QIP are, among others, the Godavari Bridge project in Andhra Pradesh, the Pravara co-generation project in Maharashtra and the Patna Highway Project, a 63.17-km annual annuity road project of National Highways Authority of India, which is part of NH-77, the road connects Hajipur (Patna) to Muzaffarpur.

Gammon Infrastructure Projects had in September 2013 a total debt of about Rs37 billion (US$618 million).

Last week GMR Infrastructure raised Rs36 billion (US$601 million) via QIP. GMR raised US$250 million by selling shares to qualified institutional investors, and another US$100 million by issuing warrants to promoters.

GMR also planned to used the funds to repay debt. Bangalore based GMR's consolidated debt stood at Rs391 billion (US$6.53 billion) as on March end.

According to sources, during the last month Indian companies have raised over Rs150 billion (US$2.5 billion) through QIPs to tap on the renewed investors' interest in India after the change of government.

List of country news

Country news

  • July 16, 2014

    IIFCL works on enhancing bonds to finance infra projects in India

    Local press reported yesterday that V.Venkata Ramana, Director of India Infrastructure Finance Company Limited (IIFCL), Read more
  • July 17, 2014

    Standard Chartered PE to invest in power transmission business

    Sterlite Technologies Limited (Sterlite), a global provider of transmission solutions for the telecom and power industries, announced last week that it has entered into agreements with Standard Chartered Private Equity for an equity investment of 5,000 million rupees (approximately $83.2 million) in Sterlite Power Grid Ventures Ltd (SPGVL). Read more
  • July 18, 2014

    BRICS to create new development bank

    Leaders from the BRICS countries - Brazil, Russia, India, China, and South Africa - formally launched a joint international development bank on Tuesday July 15th during their annual summit, held this year in the Brazilian city of Fortaleza. Read more
  • July 18, 2014

    Two firms bid for Maharashtra road PPP project

    India's Maharashtra State Road Development Corporation (MSRDC) has received two bids for the Versova-Bandra Sea Link (VBSL) project. Read more
  • July 23, 2014

    Bihar state launches RFQ for road PPP project

    The Government of Bihar (India), through Bihar State Road Development Corporation Limited (BSRDCL), Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.