HG Infra Engineering IPO subscribed 11% on Day 1
ETMarkets.com|
Updated: Feb 26, 2018, 05.57 PM IST
NEW DELHI: The initial public offering (IPO) of engineering, procurement and construction (EPC) player HG Infra Engineering received 10.92 per cent subscription till 5.50 pm on the first day of the bidding process.
Data available with NSE showed that the Rs 462 crore issue had receive bids for 13,52,065 shares against the issue size of 1,21,37,070 shares.
The company is looking to raise up to Rs 300 crore from a fresh issue partly to fund capital equipment worth Rs 90 crore, repay debt worth Rs 116 crore and for other general corporate purposes. Existing shareholders intend to offload 60 lakh scrips. The price band for the issue is fixed at Rs 263-270 apiece.
Two states Maharashtra and Rajasthan account for over 95 per cent of the EPC company's order book. It offers EPC services on a fixed-sum turnkey basis and civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector.
Over 85 per cent of the company's revenues come from road & highways sector.
Experts believe that one can subscribe to the issue with a long-term view. Given the fully-priced IPO valuations and the prevailing volatility in the market, listing upside could be capped, they said.
As on November 30, 2017, the company was working on 21 projects in this space, aggregating Rs 3,585.31 crore. The company is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH.
Over FY14-17, the company has reported 30.8 per cent rise in net sales and 69.8 per cent jump in net profit. Repayment of debt is seen improving the bottomline for the firm.
Data available with NSE showed that the Rs 462 crore issue had receive bids for 13,52,065 shares against the issue size of 1,21,37,070 shares.
The company is looking to raise up to Rs 300 crore from a fresh issue partly to fund capital equipment worth Rs 90 crore, repay debt worth Rs 116 crore and for other general corporate purposes. Existing shareholders intend to offload 60 lakh scrips. The price band for the issue is fixed at Rs 263-270 apiece.
Two states Maharashtra and Rajasthan account for over 95 per cent of the EPC company's order book. It offers EPC services on a fixed-sum turnkey basis and civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector.
Over 85 per cent of the company's revenues come from road & highways sector.
Experts believe that one can subscribe to the issue with a long-term view. Given the fully-priced IPO valuations and the prevailing volatility in the market, listing upside could be capped, they said.
As on November 30, 2017, the company was working on 21 projects in this space, aggregating Rs 3,585.31 crore. The company is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH.
Over FY14-17, the company has reported 30.8 per cent rise in net sales and 69.8 per cent jump in net profit. Repayment of debt is seen improving the bottomline for the firm.
