Gammon Infra IPO to raise up to 3.3 bln rupees

MUMBAI (Reuters) - Construction firm Gammon India Ltd will raise up to 3.31 billion rupees through the initial public offer of its unit, Gammon Infrastructure Projects Ltd, that opens on March 10 and closes on March 13.

The price band for the 16.55-million-share offer has been set at 167 to 200 rupees a share, the company said on Thursday. The book-built offer, through a fresh issue of shares, will constitute 11.5 percent of the post-issue equity capital.

Gammon India owns 82.5 percent in the unit, while private equity fund AMIF holds another 12.5 percent stake.

Gammon Infrastructure currently holds 13 projects for developing roads, bridges, ports, power plants and a special economic zone. Of these, four projects are operational and another five are under development.

Its most recent project is for an offshore container terminal at Mumbai port, expected to cost 12 billion rupees, which it won along with Gammon India and Spanish firm Dragados.

The company posted net profit of 321.3 million rupees for the year ended March 2007, on total income of 1.59 billion rupees.

SSKI Corporate Finance and Macquarie India are the book-running lead managers to the issue.