GMR Infrastructure prices IPO at bottom

Institutional investors carry the $171 million deal after retail and corporate investors turn their back to a growth potential that exists largely in the future.

GMR Infrastructure on Monday August 7 priced its initial public offering at the bottom of the indicated range for a total deal size of Rs8.01 billion $171 million.

The low-end pricing reflected the fact that many institutional investors were willing to participate only if the valuation was kept towards the cheap end and that non-institutions, retail investors and even the companyÆs own employees shunned the deal altogether.

The tranches earmarked for the latter three categories were all undersubscribed, while...

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