Sebi Approves Rs.1,500 Crore Fund Raise For GMR Infra
The Market regulator Sebi authorization is obtained by GMR Infrastructure to raise a fund of Rs. 1,500 crore by means of rights issue. GMR will make use of the funds raised to make settlement towards borrowings and also for general corporate needs.
What is Rights Issue?
According to rights issue, shares are provided to the subsisting investors based upon their share at a fixed cost and proportion. The application of GRA Infra has been filed in September for the projected rights issue with Securities and Exchange Board of India.
The latest update of capital market regulator says that concluding observations on the outline of offer documents was issued by Sebi on November 17.
The issuance provided by Sebi on observation of offer documents is deemed as an approval to the issuer in order to carry on with the issues of shares though various routes similar to IPOs, FPOs as well as rights issue. The raised funds would be used by GMR Infra for reimbursement of some borrowings and also for corporate use.
The lead managers to the matter are ICICI Securities, JM Financial Institutional Securities, SBI Capital Markets and Axis Capital.
According to the draft letter filed, on rights basis, the shareholders would be given equity shares for a cumulative amount which will not go beyond Rs.1500 crore. Airports, roads, power plants and urban infrastructure are some of the divisions in which the GMR infra has interest.
The Stock Price of GMA Infra Structure
GMR quoted Rs.19.55, down Rs.0.25 or 1.26 percent at 11.01 hrs on November 28, 2014. The high of 52-week share was Rs. 38.30 and low was Rs. 17.20.
The 12 month’s trailing EPS of the company was Rs.0.23 per share according to the quarter ended September 2014. The P/E ratio of the stock was 85. The recent book value of the firm is Rs.16.76 for every share. At present value, the book value of GMA Infra is 1.17
Article Source: Money Control
GMR Infrastructure, ICICI Securities, JM Financial Institutional Securities, SBI Capital Markets, Sebi authorization, Securities and Exchange Board of India
