Gammon Infrastructure Projects Projects Limited (GIPL) said on tuesday it has raised 2,590 million rupees ($42.5 million) through a qualified institutional placement (QIP).

Gammon Infrastructure said in a filing to the Bombay stock Exchange (BSE):

"The QIP Committee of Directors at its meeting held on September 08, 2014, has approved the issue and allotment of 20,41,74,286 equity shares to eligible qualified institutional buyers at the issue price of 12.68 rupees per equity share, aggregating to approximately Rs. 2588.9 million."

Gammon Infrastructure Projects Limited (GIPL) is an infrastructure project development company incorporated by Gammon India Limited, to participate in the development of infrastructure projects on a public private partnership (PPP) basis.

According to sources, Gammon Infrastructure would retire Rs1 billion rupees (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.

In July 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.