HG Infra IPO

HG Infra IPOBusiness description – HG Infra is an infrastructure construction, development and management company with extensive experience in its focus area of road projects, including highways, bridges and flyovers. The company’s main business operations include:

  • providing engineering, procurement and construction (“EPC”) services on a fixed-sum turnkey basis
  • undertaking civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector

The company has also forayed into executing water pipeline projects and is currently undertaking two water supply projects in Rajasthan on turnkey basis which includes the designing, construction, operation and maintenance of the project. HG Infra has executed projects across various states in India covering Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh. During the last five years, the company has completed 13 projects above the contract value of INR400.00 million in the roads and highways sector aggregating to a total contract value of INR16,748.94 million, which included construction, improving, widening, strengthening of two and four lane highways, construction of high level bridge and construction of earthen embankment, culverts and cart track underpasses.

As on 30 November 2017, the company has 21 ongoing projects in the roads and highways sector.

Promoters of HG Infra – Mr Harendra Singh, Mr Vijendra Singh and Mr Girish Pal Singh
HG Infra IPO details
Subscription Dates 26 – 28 February 2018
Price Band INR263 – 270 per share
Fresh issue INR300 crore
Offer For Sale 6,000,000 shares (INR157.8 – 162 crore)
Total IPO size INR457.8 – 462 crore
Minimum bid (lot size) 55 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE
Use of funds
  • Purchasing capital equipment – INR90 crore
  • Repayment/ prepayment of certain indebtedness – INR115.5 crore
  • General corporate purposes
HG Infra’s financial performance (in INR crore)
FY2014 FY2015 FY2016 FY2017 H1 FY2018
Total revenues 473.0 367.6 743.3 1,058.6 569.5
Total expenses 447.2 354.1 697.1 979.6 524.4
Profit after tax 10.9 4.6 35.4 53.3 29.3
Net margin (%) 2.3 1.3 4.8 5.0 5.1

HG Infra Contact Details

HG Infra Engineering Limited 
IIIrd Floor, Sheel Mohar Plaza
A-1, Tilak Marg, C-Scheme
Jaipur 302 001

Phone: +91 141 4106 040
Fax: +91 141 4106 044
Email: [email protected]
Website: www.hginfra.com

Registrar of HG Infra IPO

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083

Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website: http://www.linkintime.co.in

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

HG Infra IPO Subscription Details

Category Shares offered Subscription (no. of times, at 5:00 PM)
Day 1 Day 2 Day 3
QIB 3,433,647 0.00 0.00 8.37
NII 2,611,027 0.03 0.07 4.96
Retail 6,092,396 0.20 0.84 2.75
Total 12,137,070 0.10 0.43 4.81

HG Infra IPO Allotment Status

HG Infra IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.

Listing Performance of HG Infra

IPO Opening Date: 26 February 2018

IPO Closing Date: 28 February 2018

Finalisation of Basis of Allotment: 6 March 2018

Initiation of refunds: 7 March 2018

Transfer of shares to demat accounts: 8 March 2018

Listing Date: 9 March 2018

Listing Price on NSE: INR270 per share (no change from IPO price)

Closing Price on NSE: INR265.80 per share (down 1.56% from IPO price)

29 COMMENTS

  6. Guys, don’t make the mistake thinking this is high priced. This is a good business with nice profits and grey market premium of Rs 50 is also good. Pricing is according to market conditions.

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