Gammon Infra to raise $100 million

Mumbai-based Gammon Infrastructure Projects Ltd (GIPL) plans to raise $100 million in the coming months, Parvez Umrigar, managing director, said on Friday.

He said the company has not decided on the instrument yet. “It could be a qualified institutional placement (QIP) or a simple preferential placement,” he said. Umrigar said things would be finalised in about a month.

Asked where the money would be deployed, he said, “It would primarily be for new projects as we have adequate liquidity for the existing ones.” Through the move, the company is looking to double its net worth, which is currently Rs 500 crore.

Gammon India, its parent company, at March-end indirectly held about 70% in Gammon Infra. Its stake will fall with the placement. Umrigar said Gammon India is also looking to raise funds.

For the quarter ended March, Gammon Infra’s topline showed a year-on-year fall of nearly Rs 11 crore to Rs 15.73 crore and bottomline dropped to Rs 2.11 crore from Rs 6.97 crore.