Gammon Infrastructure slips 5% on listing day

Shares of the Mumbai-based, Gammon Infrastructure Project Limited (GIPL), got listed today at a premium of 7.78%, or at Rs 180 as against its issue price of Rs 167 a share on the Bombay Stock exchange (BSE).

The company had entered capital market with its initial public offering (IPO) of 1,65,50,000 equity shares of par value Rs 10 each. The issue had subscribed 3.48 times.

GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.

The company will utilize the raised funds for investment in various projects, repaying debt and for acquisitions.

The book running lead managers to the issue were IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited.

The stock has finally settled at a discount of 5.45% at 158 on BSE on concerns over the valuation of the company. The scrip has hit a high of Rs 180 and a low of Rs 148.