GMR Infra could easily come down to Rs 120

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GMR Infra could easily come down to Rs 120

Managing Editor of CNBC-TV18, Udayan Mukherjee said there was a palpable sense of disappointment that the QIP of GMR Infrastructure did not go through. It’s very richly valued stock. It’s easy to justify GMR from a valuation and fundamental perspective to come down to Rs 120.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say GMR Infra BSE | NSE 30/05/12 Are Mutual Funds betting on GMR Infra?

GMR Infrastructure called off its qualified institutional placement (QIP) on Tuesday. It had earlier reduced QIP's size to USD 100-200 million from USD 500 million. Managing Editor of CNBC-TV18, Udayan Mukherjee, said there was a palpable sense of disappointment that the QIP of GMR Infrastructure did not go through. "It's very richly valued stock. It's easy to justify GMR from a valuation and fundamental perspective to come down to Rs 120. So it could easily come down to that kind of level," he added.

Here is a verbatim transcript of Managing Editor, Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.

There was a palpable sense of disappointment that the QIP of GMR Infrastructure did not go through. But one needs to keep it in perspective that GMR is probably not in a Unitech kind of situation. If Unitech's QIP did not go through Unitech would be in dire stage - I am talking about the first QIP and then the stock would have really got hammered out of shape.

But GMR needed the money but did not need as desperately as some of the real estate companies or Unitech did. So to that extent it does not deserve to fall 30% because a QIP - they could not raise money through a QIP. So you can understand some disappointments, some sentimental reaction but should not overdo it as well.

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