GMR Infrastructure, the Bangalore-based project group and PPP specialist, has ended an effort to raise $500 million (Rs 2,000 crore) from Indian institutions via a qualified institutional placement (QIP).
GMR said in a filing to the Bombay Stock Exchange yesterday: “We have decided to withdraw the QIP in light of the existing market conditions.” The company’s share price dropped by nearly 9 percent on the news.
According to the Economic Times newspaper, other Indian groups including HDIL and Hindustan Construction are currently mulling similar QIP offerings.
The paper also cites unnamed GMR officials as saying the company may now raise fresh capital through private equity funds through holding companies or at project level.
GMR Infrastructure is part of GMR Group, which has interests in Indian airports, energy projects, roads and urban infrastructure.
In June, GMR Infrastructure chairman G.M. Rao announced plans for the business to prioritise investment in large airports inside and outside India with more than five million passengers per year. The company already operates Delhi International Airport and Hyderabad International Airport.
In December 2007, Indian institutions rushed to buy into an oversubscribed $1 billion QIP for GMR Infrastructure.