Bharat Road Network — Give it a pass

Muthukumar K

Risky road assets and high valuation render the issue non-lucrative

Bharat Road Network (BRNL) a road construction company promoted by Kolkata-based SREI group, is making a public offer of ₹600 crore in a price band of ₹195-205 per share. At the higher end of the price band, it is seeking an enterprise value to EBITDA multiple of 18 times. This is much higher than of its peers such as IRB Infrastructure (6.3 times), Ashoka Buildcon (8.4 times) and Sadbhav Infra...