GMR Infra raises $315 mn through QIP issue

This is the largest fund-raising through this route in 2010.

GMR Infrastructure today raised $315 million (around Rs 1,400 crore) through qualified institutional placement (QIP).

So far in 2010, this is the largest fund-raising exercise through the QIP route, overtaking YES Bank’s $225-million (Rs 1,000 crore) issue in January. Since January, prior to the GMR Infra issue, Indian companies have raised over Rs 5,000 crore through the QIP route.

The Bangalore-based company issued shares at Rs 62.20 each to a clutch of institutional investors. Nearly 88 per cent of the subscription to the issue came from overseas investors. Half the subscription was from European investors, while 38 per cent was from Asia, sources involved with the issue said.

Promoter holding in the company will remain around the 75-per cent level, seen at the end of March, as 225 million new shares are being issued.

GMR Infrastructure had originally planned to raise $250 million but exercised the option to retain a higher subscription, a source said. Bank of America Merrill Lynch was the sole coordinator for the issue and the book running lead manager.

The other bankers included Axis Bank, ICICI Securities and IDBI Capital Market Services.

The share price of GMR fell by 1.1 per cent in today's trade to close at Rs 63 per share.

The proceeds from the issue are to be used for funding new projects.

The GMR issue comes after an aborted share sale attempt last June, when fund-raising through the QIP route was at its peak.

At that time, the company had planned to raise $200 million but had to defer the issue due to adverse market conditions.

In May last year, GMR announced that its board of directors had approved to raise funds up to Rs 5,000 crore through issue of equity shares, depository receipts, foreign currency convertible bonds or other securities.

Recently, GMR Energy, a wholly-owned subsidiary of GMR Group, signed an agreement with Singapore-based Temasek Holdings to raise capital for its energy expansion plans. Temasek Holdings will invest $200 million through its wholly-owned subsidiary Claymore Investments Mauritius, through a structured paper, which is convertible into equity.

GMR has interests in roads, power plants, airport infrastructure projects in the country as well internationally. The company had acquired 50 per cent stake in Dutch power company, Intergen, for $1.1 billion in 2008.