Gammon Infrastructure to sell 10% stake through IPO

Gammon Infrastructure Projects, a unit of construction firm Gammon India Ltd, will offload 20% equity through an initial public offer (IPO) and a foreign convertibles issue.

“We will be filing red herring prospectus for an IPO in the next 45 days,” company Managing Director Parvez Umrigar said, adding the offer will comprise 10% stake sale.
Gammon Infrastructure had earlier planned an IPO for 205 stake sale. The company will now exercise the option of raising money through issue of foreign convertibles as well.

This move follows an interim order by Securities Appellate Tribunal (SAT) directing SEBI to process Gammon Infrastructure’s draft red herring prospectus expeditiously.
Gammon Infrastructure is presently valued at Rs280 crore and proposes to take the value to Rs1,000 crore, almost the same value of its holding company Gammon India.The debt-free company had diluted 12.5% to US-based fund Ochziff two years ago.

Patel Eng, Gammon JV bags Rs 806 cr order

Civil infrastructure construction firm Patel Engineering today announced that its joint venture with Gammon has bagged a Rs 806 crore order for a 434 MW hydro electric project in Himachal Pradesh.

The project has been awarded by the Satluj Jal Vidyut Nigam, a joint venture between the central government and the Himachal Pradesh government. It will be located on the river Satluj in Shimla and Kullu Districts of Himachal Pradesh. The project involves the construction of a 15-km-long head race tunnel (HRT), a 140-m deep surge shaft and power house on the right bank of river Satluj in Kullu district. The project will be completed in the next 54 months.

Read more in The Business Standard article.