GAMMON INDIA LIMITED

The price of our equity shares may experience significant fluctuations on the Indian Stock Exchanges.
The price of the Equity Shares may experience significant fluctuation on the Indian Stock Exchanges. In
recent years, price and volume fluctuations on the Indian Stock Exchanges have been significant and such
fluctuations have often been unrelated or disproportionate to the operating performance of companies
whose securities are traded on the Indian Stock Exchanges.
The trading price of the Equity Shares could also be subject to significant volatility in response to, among
other factors:
delays in the schedule for the development projects and any resultant cost and time overruns
caused by such delays;
supply and demand of EPC and construction projects, manufacturing, technology and financial
services in India and in the international markets generally;
our ability to successfully implement our strategy, and growth and expansion plans;
changes in laws and regulations, or any interpretation thereof, that apply to our business;
changes in the value of the Rupee against major global currencies and other currency changes;
changes in the Indian and international interest rates;
any adverse outcome in the legal or regulatory proceedings in which we are involved;
changes in any global conditions and situations affecting India and the industries in which we
operate; and
changes in political and economic conditions in India.
Risks Related to Our Equity Shares and the Trading Market
The Indian securities market may be more volatile and provide less information on listed companies than
securities markets in developed countries.
The Indian securities markets are more volatile than the securities markets in certain countries which are
members of the OECD. The Indian Stock Exchanges have, in the past, experienced substantial fluctuations
in the prices of listed securities.
On May 18, 2009, trading on the Indian Stock Exchanges was halted for the day after excessive volatility in
the Indian securities market. The Indian Stock Exchanges (including the BSE) have experienced problems
which, if such or similar problems were to continue or recur, could affect the market price and liquidity of
the securities of Indian companies, including the Equity Shares. These problems have included temporary
exchange closures, broker defaults, settlement delays and strikes by brokers. In addition, the governing
bodies of the Indian Stock Exchanges have from time to time imposed restrictions on trading in certain
securities, limitations on price movements and margin requirements. Furthermore, from time to time
disputes have occurred between listed companies, and stock exchanges and other regulatory bodies, which
in some cases may have had a negative effect on market sentiment.
There is a lower level of regulation and monitoring of the Indian securities markets and the activities of
investors, brokers and other participants than in certain OECD countries. The SEBI received statutory
powers in 1992 to assist in carrying out its responsibility for improving disclosure and other regulatory
standards for the Indian securities markets. Subsequently, the SEBI has prescribed certain regulations and
guidelines in relation to disclosure requirements, insider dealing and other matters relevant to the Indian
securities markets. There may, however, be less publicly-available information about Indian companies than
is regularly made available by public companies in certain OECD countries. As a result, investors may have
access to less information about our business, financial condition and results of operation and those of our
competitors that are listed on Indian Stock Exchanges, on an ongoing basis, than an investor may have
access to in the case of companies subject to reporting requirements of other countries.
An active market for our equity shares may not be sustained, which may cause the price of our equity
shares to fall.
While our equity shares have been traded on the BSE and the NSE since 2008, there can be no assurance
regarding the continuity of the existing active or liquid market for our equity shares, the ability of investors
to sell their Equity Shares or the prices at which investors may be able to sell their Equity Shares. In
addition, the market for equity securities in emerging markets has been subject to disruptions that have
caused volatility in the prices of securities similar to our equity shares. There can be no assurance that the
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