Receives bids for 5.91 crore shares
The initial public offer (IPO) of HG Infra Engineering received bids for 5.91 crore shares, data on the National Stock Exchange of India (NSE) website showed as at 17:30 IST today, 28 February 2018. The IPO was subscribed 4.87 times. The issue opened for subscription on 26 February 2018 and closes today, 28 February 2018. The price band for the issue has been fixed at Rs 263 to Rs 270 per share.
Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 23 February 2018, finalized allocation of 51.33 lakh equity shares to 11 anchor investors at Rs 270 per share.
The offer comprises an initial public offering of Rs 300 crore. At the lower price band of Rs 263 per share, the size works out to 114.07 lakh equity shares. At the higher price band of Rs 270, the size is 111.11 lakh equity shares. The offer also comprises offer for sale of Rs 60 lakh shares. At the lower price band of Rs 263 per share, the size is Rs 157.80 crore. At the higher price band of Rs 270, the size is Rs 162 crore. The selling shareholders comprise promoters and group Harendra Singh, Vijendra Singh, Girish Pal Singh (each comprising 10 lakh shares) and Hodal Singh (30 lakh shares).
The objects of the issue is to repay certain borrowings totalling Rs 115.52 crore and to purchase capital equipment worth Rs 90.03 crore. The balance is for other corporate purposes, apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to the existing shareholders.
On a consolidated basis, the company reported profit after tax of Rs 29.20 crore on net sales of Rs 567.34 crore in the half year ended 30 September 2017.
HG Infra Engineering is a Rajasthan-based player undertaking infrastructure construction, development and management. The main business includes providing engineering-procurement-and-construction (EPC) services on a fixed-sum turnkey basis and undertaking civil construction and related infrastructure projects. The focus area is road projects, including highways, bridges and flyovers.
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