Edelweiss Securities has maintained 'Buy' on GMR Infrastructure with target price of Rs 30 as against current market price (CMP) of Rs 22 in its report.

Commentinng on the investment rationale, Edelweiss said, ''GMR Infra's (GMR) energy arm, GMR Energy (GEL), has filed a draft prospectus (DRHP) for its Initial Public Offer (IPO). GEL has 4.8GW of capacity spread across coal, gas and hydro power based assets. Of this, while 2.5GW is currently operational, balance 2.3GW is under construction.

The IPO proceeds will be primarily utilised towards Rs 7 billion equity infusion in Kamalanga and Chhattisgarh power projects and for repayment of debt; in addition, it will provide an exit route to existing Private Equity (PE) investors.

We perceive GEL's fund raising as positive since it will set a valuation benchmark for the energy assets and also relieve balance sheet pressures. Maintain 'Buy' with SOTP-based target price of Rs 30.''

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