GMR Infrastructure Ltd opens QIP issue

The Board of Directors of GMR Infrastructure Ltd at the meeting held on July 2, 2014 and pursuant to the approval of the shareholders of the Company at the Extraordinary General Meeting held March 20, 2014, has passed the resolution in connection with the QIP issue.

The Board authorised the opening of QIP today i.e. July 2, 2014 and approved and adopted the Preliminary Placement document dated July 2, 2014.

The "Relevant Date" for the purpose of QIP in terms of Regulation 81 (c)(i) of the SEBI (ICDR) Regulations is July 2, 2014 and accordingly the floor price in respect of the aforesaid QIP based on the pricing formula under Section 85(1) of the SEBI Regulations is Rs.33.14 per Equity Share. The Board would consider offering a discount of not more than 5% to the floor price.

The Board has also approved a proposal to issue and allot upto 18 Crore warrants entitling to 18 Crore equity shares of Re.1 each under preferential allotment to Promoter Group entities subject to necessary permissions, sanctions, approvals and applicable SEBI Guidelines and other provisions. The Promoter Group entities will be required to make payment of 25% of the subscription amount on the date of allotment of the warrants and the balance will be payable on or before 18 months from the date of allotment of the warrants. The Relevant Date for the purpose of preferential allotment of warrants will be thirty days prior to the date of passing of the special resolution by the shareholders to approve the proposed preferential issue in accordance with the SEBI ICDR Regulations.

Further the Company inform 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, repayment of borrowings, capital expenditure, working capital and general corporate purposes and meeting exigencies or any other purposes as approved by the Board.

Shares of GMR INFRASTRUCTURE LTD. was last trading in BSE at Rs.33.85 as compared to the previous close of Rs. 34.45. The total number of shares traded during the day was 3605636 in over 7971 trades.

The stock hit an intraday high of Rs. 35 and intraday low of 33.35. The net turnover during the day was Rs. 122854181.

Source : Equity Bulls

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