| Sebi's one-year ban on company accessing capital mart ended in Dec 2007. |
| |
| Decks have been cleared for the initial public offer (IPO) of Gammon Infrastructure Projects. |
| |
| According to sources close to the development, the company would be hitting the markets with the public issue shortly. |
| |
| Gammon Infrastructure Projects, a unit of construction firm Gammon India, has been looking to raise funds through an IPO for quite some time. |
| |
| However, its public offer plans ran into trouble as the market regulator barred Gammon India and its promoter-Chariman Abhijit Rajan from accessing the capital markets for a year in December 2006. |
| |
| The Securities and Exchange Board of India's (Sebi) move to bar Gammon followed charges that the latter was routing the company's funds to subscribe to its rights issue. |
| |
| In February 2007, the company moved the Securities Appellate Tribunal (SAT), which stayed the Sebi order. |
| |
| Last October, the company re-filed the prospectus with Sebi. Moreover, the one-year ban came to an end in December 2007, allowing the company to go ahead with its plans. |
| |
| SSKI Corporate Finance and Macquarie India Advisory Services are the lead managers to the issue. |
| |
| The company is planning to raise about Rs 350-400 crore through the IPO to fund its expansion plans. |
| |
| According to the prospectus filed last year, the company will be offering 16,550,000 shares of Rs 10 each, diluting 11.45 per cent of the fully diluted post-issue equity capital. |
| |
| Gammon Infrastructure, the holding company for Gammon's investments in the infrastructure segment that range from ports to power units, had diluted a 12.5 per cent stake to US -based hedge fund Ochziff three years ago. The promoters will hold 73.05 per cent after the issue. |
| |
| The company has identified projects for urban infrastructure, airports, special economic zones, water and waste management, power transmission lines, railways and agricultural infrastructure. |
| |
| Construction companies are spinning off their infrastructure businesses into separate companies and listing them on the stock exchange in a bid to realise the untapped value. |
| |
| The economic growth has fuelled demand for infrastructure services, which, in turn, has led to the increased demand in sectors such as power, roads, ports and telecom. |
| |
| The government has estimated that the country's infrastructure requires around $500 billion over the next five years to sustain a 9 per cent GDP growth rate. |
