HG Infra IPO gets 11% subscription on Day 1


Mumbai: The Rs462 crore initial public offering (IPO) of Jodhpur-based HG Infra Engineering Ltd witnessed an overall subscription of 11% on Monday, the first day of the share sale, data from stock exchanges showed.

As of 5pm, the portion of shares reserved for institutional investors in the HG Infra IPO had seen no subscription at all, while the portions reserved for retail investors and high net-worth individuals (HNIs) were subscribed 21% and 4%, respectively.

HG Infra’s shares have been priced in a band of Rs263-270 per share. The IPO will close on 28 February.

The initial share sale of HG Infra comprises a fresh issue of shares of Rs300 crore and an offer for sale of 6 million shares by the promoters of the company.

At the upper end of the price band, the share sale will fetch the promoters about Rs162 crore.

Proceeds from the fresh issue will be used for buying equipment, repayment of debt and meeting general corporate expenses.

Founded in 2003, HG Infra is an infrastructure construction, development and management company with a focus on road projects, including highways, bridges and flyovers. Its main business operations include providing engineering, procurement and construction (EPC) services and undertaking civil construction projects.

On Friday, HG Infra raised Rs138.59 crore by selling shares to 11 institutional investors as part of its anchor book allocation. Institutional investors that participated in the anchor book allocation include HDFC Trustee Co. Ltd, DSP Blackrock India Tiger Fund, Aditya Birla Trustee Pvt. Ltd, Reliance Capital Trustee Co. Ltd and L&T Mutual Fund Trustee Ltd, among others.

SBI Capital Markets Ltd and HDFC Bank Ltd are managing the HG Infra share sale.

HG Infra is the third road infrastructure company to launch its IPO, since 2016.

Last year, Bharat Road Network Ltd, a road and highways company launched its Rs600 crore IPO. The IPO saw an overall subscription of 1.8 times on the last day of its share sale, while on the first day, it was subscribed 22%.

In 2016, mid-sized construction company and roads developer Dilip Buildcon Ltd raised Rs664 crore by going public.livemint