GMR Infra down 6%

GMR Infra is down 6% at Rs.31.75, just a tad above the intra day low at Rs.31.40.

The stock is in the red today as the market is not too happy with the company’s plans for a QIP. It has launched a QIP, to raise around Rs.1200 crore and the floor price has been set at Rs.33.14/equity share and will be offered at a discount of not more than 5% of the floor price. The proceeds from the QIP offering and the preferential allotment will be used primarily for the purpose of strengthening GMR Infra’s financial position via repayment of borrowings, capital expenditure, working capital and general corporate purposes and meeting exigencies or any other purposes as approved by the board.

The board has also approved a proposal to issue and allot up to 18 crore warrants equalling 18 crore equity shares of Re.1 each under preferential allotment to promoter group entities. The price of the warrants will not be less than the QIP price.