GMR PUTS OFF $500-M QIP ISSUE Posted 7/7/2009 6:47:53 AM Poor Investor Appetite In A Choppy Market Forces Co To Abandon Plan GMR Infrastructure was on Tuesday forced to abandon its attempt to raise $500 million (Rs 2,000 crore) in off-market share sales to institutional investors after they showed little interest in the offering. The failure of the Bangalore-based company to raise money through a qualified institutional placement (QIP) is being seen as bad news for the dozens of others who have lined up similar share offerings to raise some Rs 20,000 crore this year. “We have decided to withdraw the QIP in light of the existing market conditions,” GMR Infrastructure said in a statement to BSE. The company stock fell by 8.79% to Rs 141.65 on BSE while the benchmark Sensex index closed nearly 2% lower. GMR Infrastructure had set Rs 142 as the floor price for the QIP. The company is part of the GMR Group, which operates the Hyderabad international airport and is the majority owner of the consortium operating and upgrading the Delhi international airport. A person with knowledge of the company’s QIP process said there was investor appetite for only a fifth of the $500 million on offer. “We did not want to raise a smaller quantum as it will not meet our objective of raising growth capital,” CFO A Subba Rao told ET. “We will now time it appropriately,” he added. The QIP, which was meant to raise money in preparation for likely new infrastructure projects, was launched on Monday night. “There is not that much investor appetite to absorb so much paper at one go,” said an infrastructure expert with a consulting firm. Courtesy:- ET dt:- 01-07-09 (0) Comments

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