Sectors

Weak demand forces India’s GMR to pull placement

Date: 30 Jun 2009

GMR Infrastructure had to abandon its US$500 million qualified institutional placement after struggling to sell it into a volatile marketplace. It is believed to be India's largest failed offering this year in an indication of skittish investor sentiment.

Keywords (click to search): [GMR Infrastructure] [qualified institutional placement] [QIP] [withdrawn]

Ruth David

Construction and energy firm GMR Infrastructure bore the brunt of a volatile marketplace today (June 30) when it was forced to abandon one of India’s largest equity deals amid weak investor demand.

An announcement to the Bombay Stock Exchange said simply that the company’s directors had pulled the US$500 million qualified institutional placement (QIP) close to the end of trading in light of “existing market conditions”.

According to market sources, there was investor demand for only about US$100 million so the management decided to pull the deal. 

The untimely failure was blamed on a marketplace flooded by recent share offerings, with a reported US$1.2 billion in deals launched onto domestic markets yesterday.

For the country’s volatile equity markets, it now looks like a case of too...

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