GMR Infra tumbles after launching QIP issue

GMR Infrastructure fell 6.07% to Rs 31.70 at 10:52 IST on NSE after the company launched a share sale to institutional investors.

On NSE, so far 2.61 crore shares were traded in the counter. The stock hit a high of Rs 33.95 and a low of Rs 31.40 so far during the day.

The large-cap company has an equity capital of Rs 389.24 crore. Face value per share is Re 1.

GMR Infrastructure said it launched qualified institutional placement (QIP) of equity shares on Wednesday, 2 July 2014. The company set a floor price of Rs 33.14 per share for the issue and could offer shares at up to a 5% discount.

Separately, GMR said it will also issue 18 crore warrants, convertible into 18 crore equity shares, to the company's promoters. Further the company informed that the price of warrants shall not be less than the QIP price.

The proceeds of the QIP offering and the preferential allotment will be used primarily for the purpose of strengthening the company's financial position and net worth by way of, inter alia, repayment of borrowings, capital expenditure, working capital and general corporate purposes and meeting exigencies or any other purposes as approved by the board, the company said.

On consolidated basis, GMR Infrastructure's net profit surged 102% to Rs 1170.18 crore on 14% growth in net sales to Rs 2930 crore in Q4 March 2014 over Q4 March 2013.

GMR Infrastructure is a global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.

Powered by Capital Market - Live News