Kolkata based Bharat Road Network Ltd. (BRNL) has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator SEBI seeking permission for its Initial Public Offering (IPO). The company is a road BOT company in India, focused on development, implementation, operation and maintenance of roads/highways projects. Bharat Road Network – a Srei initiative – is a road BOT company, focused on development, implementation, operation and maintenance of roads/highways projects. The company has projects in states like Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha through partnerships with experienced EPC players in the local space where the project is located.
The public issue consists of up to 29,300,000 equity shares of face value of INR10 each. Final price band will be decided in consultation with the Book Running Lead Managers (BRLMs) but the issue size is estimated to be around INR1,200 crore (INR12 billion).
The company is promoted by SREI Infrastructure Finance Limited and Make in India Fund. IPDC (Infrastructure Project Development Capital) and SREI are the biggest shareholders in Bharat Road Network with a combined stake of 68.7%. IPDC is a scheme of SREI Venture Capital Trust.
BRNL IPO proceeds for reduce debt
Proceeds from BRNL IPO Issue will be utilized towards advancing of subordinate debt in form of interest free unsecured loan to its subsidiary, STPL, for part financing of the STPL Project (“STPL Sponsor Investment”), part acquisition of the subordinated debt in form of interest free unsecured loan or debentures, advanced by SREI to STPL, KEPL and MTPL (“Identified SPVs”) and for general corporate purposes.
Bharat Road Network currently has a project portfolio consisting of six BOT Projects, of which two are projects operational under final COD (date of commencement of the commercial operation), three are projects operational under provisional COD and one is a project under construction. Projects operational under final COD and projects operational under provisional COD are located in the states of Kerala, Madhya Pradesh, and Haryana, Uttar Pradesh and Odisha, respectively.
INGA Capital Private Limited, Investec Capital Services (India) Private Limited and SREI Capital Markets Limited are book running lead managers to the issue and Karvy Computershare Private Limited is the Registrar to the Issue.