GMR Infrastructure prices IPO at bottom

GMR Infrastructure on Monday (August 7) priced its initial public offering at the bottom of the indicated range for a total deal size of Rs8.01 billion ($171 million).The low-end pricing reflected the fact that many institutional investors were willing to participate only if the valuation was kept towards the cheap end and that non-institutions, retail investors and even the company’s own employees shunned the deal altogether.The tranches earmarked for the latter three categories were all undersubscribed, while institutional investors asked for 10.9 times the shares set aside for them, according to the National Stock Exchange of India website. In total, the deal was 6.7 times covered when the order books closed last Friday.
GMR has a portfolio of roads and power plants, but has recently also secured two airport contracts and was largely positioned as a play on the expected growth in demand for air traveling in India.
08/08/06 Anette Jönsson/FinanceAsia, Hong Kong

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