Gammon Infrastructure Projects Ltd

Initial Public Offer

Key Data

Date of Opening 10th March, 2008

Date of Closing 13th March, 2008

Method of Payment Full bid amount at the time of submission

Value @ Rs 167-200 276.38-331 Crore

No. of Share Offered 16550000 equity shares

Face Value 10

BRLM’S IDFC-SSKI Pvt Ltd and Macquire India Advisory Services Pvt Ltd

Registrar Intime Spectrum Registry Ltd

Minimum Lot 35 equity shares

Maximum Retail Lot 14 (490 Share Rs98000/- at Rs.200/- per share)

Post Issue Share Capital 144.55 Crore

Post Issue Market -cap. 2413.99-2891.00 Crore.

Investment Rationale

GIPL was incorporated in 2001 to participate in the development of Infrastructure projects in India. The company is amongst the first to be modeled as an infrastructure development company undertaking projects on Public-Private-Partnership basis.GIPL intends to be a market leader in the Infrastructure sector by building upon its core competency of development of
road projects, diversifying into new sectors, entering into strategic alliance to undertake large value projects and moving up the value chain to realize better margins. GIPL is among the first companies in India incorporated exclusively to participate in Infrastructure development through the PPP model and has assured revenue earned from its portfolio of projects thus making it a
financially strong company.

Assured revenue earned from its portfolio of projects

All the operational projects have assured sources of revenue under either an annuity or take-or-pay type arrangement with various government or quasi-government entities. The annuities receivable by REL and AEL (the two SPV’s) by NHAI are structured to cover the fixed cost s of operating projects, interest and depreciation. This can be stated with an example like; the bridge project at Cochin has a fixed annuity amount payable by GOK until the revised
concession period. Thus contracts of this nature will reduce the revenue risk associated with the project, thereby balancing the market risk with assured returns. GIPL follows a balancing strategy where is gets a significant upside potential with market based projects and stable revenues from assured return projects.

Diversified project portfolio spread across sectors and geographies

The projects both in operational and development phase are spread across roads, bridges, ports, hydropower and biomass power sectors. These projects are geographically diversified across various states in India. Thus due to such sectoral and geographic diversity, GIPL is able to effectively mitigate the risk associated with any particular sector and any particular state in
India.

Significant operational experience

GIPL is among the first companies in India incorporated exclusively to participate in Infrastructure development through the PPP model. Since GIPL has advantage of being an early entrant in the infrastructure development business, it has familiarized itself with the risk associated in the development, operations and maintenance of such facilities in India.Thus this
experience of GIPL will help it to ensure continuous growth of its business operations.

Leverage strategic relationships and expand its core strength

The company intends to leverage its strategic relationships with global infrastructure companies such as Dragods S.P.L., China Light and Power, Alstom, Siemens and Noble group to enhance its project bidding and development opportunities. These relationships will enhance GIPL’s brand name and optimize its ability to develop and deliver quality projects. GIPL intends to expand its
core strength by offering fee-based O&M services by capitalizing its experience in many projects. Since substantial capacity enhancement is expected in the infrastructure sector in India, GIPL forays to aggressively market its capabilities of O&M service provider both within and beyond the infrastructure projects.

Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400
001. Phone : 91-22-56338050 / 66965555. Fax : 5633 8060
Members: BSE & NSE
www.krchoksey.com