HG Infra IPO.
H.G. Infra Engineering Ltd IPO Detail.
Company Promoters :
Mr Harendra Singh, Mr Vijendra Singh and Mr Girish Pal Singh.
Business Description :
Incorporated in 2003, H.G. Infra Engineering Ltd (HGIEL) is Jaipur, Rajasthan based an infrastructure construction, development and management company. Company focus area is road projects, including highways, bridges and flyovers. Company’s main business operations include providing engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis and undertaking civil construction and related infrastructure projects. HGIEL is also engaged in executing water pipeline projects and are currently have two water supply projects in Rajasthan.
HGIEL is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH. HGIEL’s public sector clients include NHAI, PWD, MES and Jaipur Development Authority.
As on 30 November 2017, the company has 21 ongoing projects in the roads and highways sector.
HG Infra’s financial performance (in INR crore)
Objects of the Issue :
The Offer comprises a Fresh Issue of ₹300 Cr and an Offer for Sale of up to 6,000,000 Equity Shares.
The Offer for Sale
Each of the Selling Shareholders will be entitled to the respective proportion of the proceeds of the Offer for Sale. Company will not receive
any proceeds of the Offer for Sale by the Selling Shareholders.
The Fresh Issue
The Net Proceeds of the Fresh Issue are proposed to be utilized by the Company for the following objects:
(a) Purchasing capital equipment;
(b) Repayment/ prepayment in part or in full, of certain indebtedness; and
(c) General corporate purposes.
Use of funds :
- Purchasing capital equipment – INR90 crore
- Repayment/ prepayment of certain indebtedness – INR115.5 crore
- General corporate purposes
Issue Type: Book Built Issue IPO
Face Value: Rs 10 Per Equity Share
Market Lot: 55 Shares
Minimum Order Quantity: 55 Shares
Retail Allocation: 35%
Tentative timetable in respect of the Offer :
- Finalisation of Basis of Allotment: On or about Mar 6, 2018.
- Initiation of refunds: On or about Mar 7, 2018.
- Credit of Equity Shares to demat accounts: On or about Mar 8, 2018.
- Commencement of trading of the Equity Shares on the Stock Exchanges: On or about Mar 9, 2018
Valuation of HG Infra (Based on latest FY)
Earnings Per Share (EPS): INR9.87
Price/Earnings (P/E) ratio: 26.64 – 27.35
Return on Net Worth (RONW): 30.32%
Net Asset Value (NAV): INR32.54 per share