Gammon Infra puts QIP on hold
 
Gammon Infrastructure Projects Ltd (GIPL) which was planning to raise Rs500 crore through qualified institutional placements (QIPs) is now exploring other options like debt, stake sale and private equity funding due to its below expected performance in the stock markets and lower valuation.
 
"QIP is always governed by the market value. We are not satisfied with the way our shares are performing currently. The market value is far below than what it was for the initial public offer (IPO) last year," said Parvez Umrigar, managing director, GIPL.
Earlier, the company had planned to raise Rs500 crore through a QIP. Besides raising funds through debt or private equity placements, GIPL may also sale its stakes in its 15 special purpose vehicles (SPV).
 
“We are now probably looking at some debt, as GIPL is currently a debt-free company,” Umrigar said adding that it may talk to private equity funds, which may look beyond the company’s current share price.
 
However, Umrigar does not rule out QIP as an option completely. "QIP continues to be an option for us, as it is a faster process and not a time-consuming one. Liquidity is faster with QIPs," he said.
 
Last year, GIPL raised Rs276.40 crore through its IPO but GIPL shares have fallen by 31% since its listing on 3 April 2008. Gammon Infra shares were listed on the BSE at a premium of 8% over its issue price of Rs167. GIPL shares closed 1.2% down at Rs108.5 on the Bombay Stock Exchange, while the Sensex ended 0.2% down at 17,195 points today.
 
“GIPL entered the capital market when things were not so good, but still our issue was oversubscribed. Since then, the markets have not been stable,” Umrigar added.
 
 
 

User

A new high
Here is a piece of great news for the airline industry. Qatar Airways has become the first carrier to fly an Airbus A340 plane on natural gas fuel. The plane is powered by Rolls-Royce engines using a 50-50 blend of synthetic gas-to-liquids (GTL) fuel. That will cut down sulphur, corrosion, carbon dioxide and other emissions. Additionally, this type of fuel increases the flying range of aircraft.

The airline industry has been asked to bring down emission levels by 10% in the recent G-20 summit. The world airline industry has 19,000 planes consuming 208 billion litres of fuel every year causing an emission of 540 million tonnes of carbon dioxide. The Qatar Airways experiment seems like a viable answer.

World powers are constantly seeking alternative fuels to reduce emission levels. Earlier, the erstwhile USSR has used aircraft fueled with alternative fuel like liquid hydrogen, liquefied natural gas 20-25 years ago. The USSR had used propane-butane fuels to fly helicopters in the 1970s.

In gas-run planes a fuel leak can be determined immediately because vapours form a concentration measurable for gasometry instruments. A gas leak leaves the crew with a better probability of escape. Gas has a higher combustion value than aviation fuel, which could improve the weight characteristics of aircraft.

In addition, aviation fuel may last for another 20-25 years whereas gas reserves are expected to last for the next 100 years.

Qatar has the world's third-largest gas reserves. GTL, although more expensive than kerosene, has a higher density and high calorific value that implies that more can be pumped into a plane to extend its flying range.
- Dhruv Rathi [email protected].

User

IIT ditches alumnus
 
Young graduate student Buddhi Vikram is still languishing in US prisons since 2006 for allegedly sending threat mails to the then President George Bush and all efforts of his father, another IIT alumnus, to garner support have failed. The IIT alumni were supposed to take up Vikram’s case with former President Bill Clinton during his address to the PanIIT 2009 conference held earlier this week at Chicago, but allegedly could not muster up courage to do so.
 
This has started a fresh debate among the IIT alumni about their annual conference itself. Moneylife has come across some chain mails that are doing rounds on the Internet about PanIIT’s failure to take up Vikram’s case.
 
Vikram was arrested in April 2006 and charged on 11 counts, including charges under US Code 871, which deals with threats to the US president and his successor. If proved guilty, he could be sentenced to imprisonment up to 60 years. Vikram graduated in mathematics with an MSc degree from the Indian Institute of Technology (IIT) Bombay, stood first in the class and received a silver medal from IIT.
 
According to Dr Buddhi K Subbarao, a former defence scientist who worked with the Indian Navy, and father of Vikram, PanIIT association conference organisers at Chicago buckled under pressure from US authorities. "It is amazing to me to know the twists and turns from the events at the PAN-IIT Conference," said Dr Subbarao, who holds a PhD in nuclear technology from IIT Bombay.
 
Echoing the same feeling, one of the attendees at the PanIIT conference, Ajeet Saxena, said, "These (the PanIIT fellows) are the guys who were not even known within their own batch and are now looking for some public recognition and scenes of importance by holding some 'public' office. They are goody-goody, out to maintain status quo, please all those in authority and somehow pose for photo sessions. They have nothing to do with matters of truth, righteousness and justice—as advocating any of these three requires courage and involves risk. Championing the cause of truth and justice antagonises people in powerful positions—people on whose crumbs these creatures thrive, and one faces the danger of not only losing the privileges offered by the establishment but even the risk of being victimised. So, don't expect anything from them."
 
Another IIT alumnus, who attended the conference after some reluctance, Samir Kelekar has termed the behaviour at the conference as a "tamasha". He said, “I didn’t see any difference in the PanIIT tamasha in Chennai. In fact, nothing of any consequence of social political change was taken up or (issues of more importance) followed up. While some of us fight for democracy and freedom of speech, others just are not concerned, but just 'suck up' to authorities and perhaps are trying to strike good business deals."
 
Earlier in August, Dr Subbarao, in an appeal to SM Krishna, external affairs minister, India said, ”Vikram is awaiting his sentencing at a US prison in Chicago. In prison, he has been conducting himself in a dignified manner, teaching mathematics to inmates as per the formal program prescribed by the prison authorities, and in the rest of the time making a serious and in-depth study of US Federal Criminal Laws with the hope that a time would come where some US Court would apply its judicial mind to secure the ends of justice and his life and liberty would be restored to him.”
 
So while Vikram continues to languish in a US prison, his fellow alumni from IIT were not even bothered to help him. Do we have to say any more on why we, the citizens of India, lack patriotic spirit?
-Yogesh Sapkale [email protected]
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)