The initial public offering (IPO) of Jaipur-based infrastructure construction, development and management company, HG Infra Engineering, which opened on Monday, was subscribed 0.11 times with investors bidding for around 13.52 lakh shares of the 1.21 crore shares on offer. High Networth Individuals (HNIs) bid for 1.05 lakh shares of the 26.11 lakh shares on offer to them, while retail investors bid for 12.46 lakh shares of the 60.92 lakh shares reserved for them. “HG Infra is pre-qualified to bid independently on an annual basis for bids by the National Highways Authority of India and the ministry of road transport and highways for contract values of up to Rs 800 crore based on the company’s technical and financial capacity as on March 31, 2017,” said an analyst in a report.
On February 23, HG Infra Engineering finalised allocation of 51.33 lakh shares at Rs 270 aggregating to Rs 138.59 crore to anchor investors. Anchor Investors include DSP Blackrock India Tiger Fund, SBI Equity Opportunities Fund, HDFC Trustee, Aditya Birla Trustee, Reliance Capital Trustee and L&T Mutual Fund. SBI Capital Markets and HDFC Bank are book running lead managers to the offer. HG Infra Engineering has planned to raise up to Rs 462 crore from its IPO. HG Infra Engineering is primarily engaged in the execution of infrastructure projects like highways, roads and bridges.
The company also executes other civil construction projects like extension & grading of runways, railways and land development. The company has further diversified into water pipeline projects in the last few years. The company has executed projects in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh. HG Infra Engineering will be the sixth company to be listed on BSE and NSE in 2018.
