gayatri projects limited - Edelweiss

After this Offer, the price of our Equity Shares may be volatile, or an active trading market for our EquityShares may not develop.Prior to this Offer, there has been no public market for our Equity Shares. The trading price of our Equity Sharesmay fluctuate after this Offer due to a variety of factors, including results of our operations and the performance ofour business, competitive conditions, general economic, political and social factors, volatility in the Indian and globalsecurities markets, trends in general business and contraction industry, the performance of the Indian and globaleconomy and significant developments in India’s fiscal regime. There can be no assurance that an active tradingmarket for our Equity Shares will develop or be sustained after this Offer, or that the price at which our EquityShares are initially issued will correspond to the prices at which they will trade in the market subsequent to thisOffer.Notes to Risk Factors:1. The Networth of our Company as per the financial statements of the Company before the Offer (as onMarch 31, 2006) is Rs. 9269.21 Lakhs and the size of this Offer is Rs. 8,555 Lakhs.2. The average cost of acquisition of Equity shares of the Promoters is as per the detils given below (includingissue of bonus shares). The Book value per share as on March 31, 2006 is Rs. 102.99 per equity share.Name of Promoter No of Shares Average Cost (Rs.)*Shri T.V.Sandeep Kumar Reddy 1079190 4.44Smt.T.Indira 4500055 4.44*Due to Bonus Issues the average cost has reduced to below the face value of Rs.10 each.3. Public Issue of 29,00,000 Equity Shares of face value Rs. 10 each for cash at a Price of Rs. 295 perEquity Share aggregating Rs. 8,555 Lakhs, consisting of a Fresh Issue of 10,00,000 Equity Shares and anOffer For Sale of 19,00,000 Equity Shares. 1,00,000 Equity Shares are reserved in the issue for subscriptionby permanent employees of GPL4. The Offer is being made through a 100% Book Building Process wherein not more than 50 % of the NetOffer will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) out of which 5%shall be allocated proportionately for mutual funds. Further, at least 15% of the Net Offer will be availablefor allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Net Offer will beavailable for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids beingreceived at or above the Offer Price.5. For interest of our Promoters/Directors/Key Managerial Personnel and other ventures promoted by Promoters,please refer to section titled “Risk Factors”, “Our Promoters”, “Information of our Promoter Group Companies”,“Our Management”, “Related Party Transections” and “Financial Statements of the Company” beginning onpage no iii, 78, 79, 70, 116 and 120 of this Prospectus.6. We have entered into various related party transactions with related parties including various Promotergroup companies amounting to Rs. 24943.06 lakhs during the year ended March 31, 2006. For related partytransection refer to section titled “Related Party Transactions” beginning on page no. 116 of this Prospectus.7. No loans and advances have been made to any person(s) / Companies in which the Director(s) of theCompany are interested except as stated in the auditors certificate. For the details refer to section titled“Financial Statement of the Company” on page no. 120 of this Prospectus.8. Any clarification or information relating to the offer shall be made available by thr BRLMs, our company andour Compliance Officer to the investors at large and no selective or additional information would be availablexvii