8th August 2006: Power and infrastructure major GMR has fixed its initial public offering at the lower end of the price band of Rs 210 per share, investment banking sources said, pegging the total issue proceeds at about Rs 800 crore.

The IPO of Hyderabad-based GMR Infrastructure, which closed on Friday last week, was oversubscribed by 6.68 times primarily driven by the demand from institutional investors.

The company sold shares worth nearly Rs 800 crore in the public issue of 3.81 crore shares, which received bids for about 25.5 crore shares. The company had fixed the price band at Rs 210-250 per share.

While the IPO received oversubscriptions for nearly 11 times of the portion reserved for the Qualified Institutional Buyers (QIBs), the retail portion was under subscribed and received bids for only 52% of about 1.13 crore shares reserved for retail investors.

The company has fixed a 5% discount for the retail investors for the price derived from the book building process, which would lead to the share allotment at a price of Rs 199.50 per share to the retail investors.

The investment banking sources said that most of the bids were received in the range of Rs 230-250 per share.

GMR issue had opened on July 31 and closed on August 1, the same day when IPO of Tech Mahindra closed. However, the oversubscription was much larger at more than 72 times for Tech Mahindra.

GMR Infrastructure plans to use a part of the IPO proceeds for investment in various infrastructure Special Purpose Vehicles, which are currently in the development stages.

JM Morgan Stanley Private Limited, DSP Merrill Lynch Limited, Enam Financial Consultants Private Limited and SSKI Corporate Finance Private Limited are the BRLMs for the issue.