In a bid to tap the increasing investor demand for financial assets, HG Infra Engineering Limited (HGIEL), a Rajasthan-based infrastructure construction and management company, is all set to go public, opening its initial public offering (IPO) with a price band of Rs 263-270 per share.
The IPO, which will open for subscription on February 26 and close on February 28, will see a fresh issue of shares up to Rs 300 crore and an offer for sale of up to 60 lakh equity shares. HG Infra aims to raise Rs 462 crore through the issue.
The offer for sale comprises selling of up to 10 lakh shares each by the promoters of the company-- Harendra Singh, Vijendra Singh, and Girish Pal Singh-- and up to 30 lakh shares by Hodal Singh, the promoter group selling shareholder, according to the Draft Red Herring Prospectus (DRHP)of the company.
The net proceeds of the IPO would be utilized for purchasing capital equipment and repayment of debt and general corporate purposes. SBI Capital Markets and HDFC Bank are the book running lead managers to the offer. Equity shares are proposed to be listed on BSE and NSE. Commencement of trading of the equity shares on the stock exchanges is expected in the first weeks of March.
HG Infra Engineering provides services including engineering, procurement, and construction (EPC) services, undertaking civil construction and related infrastructure projects. The company is focused on road projects, including highways, bridges, and flyovers. It is also engaged in executing water pipeline projects and currently has two water supply projects in Rajasthan.
Following the IPO trend of 2017, many companies have lined up for entering the secondary market and tap the increasing investor demand for financial assets.