Gammon Infrastructure Projects IPO Details

GIPL IPO payment options

1. Payment Method - 1 (Partial payment option)

Even though the issue price of the GIPL IPO is in between of Rs 167/- to Rs 200/- per equity share, investor are allowed to pay a partial amount Rs 50 Per Equity share at the time of bidding.

Below are few facts and highlights of partial payment option:

1. Only Retail Individual Bidders and Non-Institutional Bidders are eligible for this method QIBs cannot submit a bid under this Payment Method.
2. While bidding, the Bidder shall make a payment of Rs. 50 per Equity Share, irrespective of the Bid Price. Investors should note that the total Bid Amount will be used to determine whether a Bid is in the Retail Individual category, Non-Institutional category or not, and not the amount payable on submission of Bid-Cum-Application Form.
3. At the time of allotment:
   • If the amount paid by the Bidder is equal to or higher than the total amount payable (being the Issue Price multiplied by the number of shares allotted) by the Bidder on the Equity Shares allotted to the Bidder, company reserve the right to adjust the excess amount towards the Balance Amount Payable and issue fully paid Equity Shares only. The excess amount, if any, after adjusting the Balance Amount Payable shall be refunded to the Bidder (i.e., Refund = Total amount paid on bidding minus the total amount payable on the shares allotted).
   • If the amount paid by the Bidder is less than the total amount payable by the Bidder (being the Issue Price multiplied by the number of shares allotted) on the Equity Shares allotted to the Bidder, company reserve the right to adjust the excess of the amount received from the Bidder over the Amount Payable on Submission of Bid-cum-Application Form towards the Balance Amount Payable and issue a Call Notice for the balance.
   • The notice of the Balance Amount Payable will be published in two widely circulated newspapers (one each in English and Hindi) and a regional newspaper along with the statutory advertisement for the Basis for Allotment.
4. Equity Shares in respect of which the Balance Amount Payable remains unpaid may be forfeited, at any time after the Due Date for Balance Amount Payable.

Partial payment options advantages and disadvantages:

1. If the amount paid is less then the total amount of shares allocated, the allocated shares will remain locked until investor pays the balance amount. This means investor may not sell the shares on listing day and get benefited from listing day gains.
2. There will not be any difference in share allocation process for different payment type. All the valid application received will be considered for IPO Allotment irrespective of payment type chosen.

2. Payment Method - 2 (Full payment option)

This is the standard method of bid payment where investor pay full amount at the time of submitting the bid.

Below are few facts and highlights of this payment option:

1. Bidders under any category can choose this method.
2. While bidding, the Bidder shall have to make the full payment (Bid Amount multiplied by number of Equity Shares bid) for the equity shares bid. Bidders in QIB category will be required to make payment of 10% of the Bid Amount multiplied by the number of Equity Shares bid, with the balance being payable on allocation but before allotment.