HG Infra Engineering IPO Is Scheduled To Open On February 26, 2018 & Close On February 28, 2018
HG Infra Engineering Limited (“Company”), an infrastructure construction, development and management company, will be launching its initial public offering (“IPO” or the “Offer”) which is scheduled to open on February 26, 2018 and close on February 28, 2018 with a price band of Rs. 263 – Rs. 270 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shares”). The anchor allocation will be a day prior to the Issue Opening i.e. February 23, 2018.
The IPO consists of a fresh issue of up to [●] Equity Shares aggregating up to Rs. 3,000 million (“Fresh Issue”) and an Offer for Sale of up to 6,000,000 Equity Shares of the Company by the Selling Shareholder aggregating up to 1,000,000 equity shares aggregating to Rs [●] Million by Mr. Harendra Singh, up to 1,000,000 equity shares aggregating to Rs [●] Million by Vijendra Singh, up to 1,000,000 equity shares aggregating to Rs [●] Million by Girish Pal Singh and up to 3,000,000 equity shares aggregating to Rs [●] Million by Mr. Hodal Singh (The Promoter Group Selling Shareholder).
The Company proposes to utilize the Net Proceeds of the Fresh Issue for Purchasing capital equipment; Repayment/ prepayment in part or in full, of certain indebtedness; and General corporate purposes.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”), through the Book Building Process and in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “SEBI ICDR Regulations”), wherein 50% of the Offer shall be Allotted to Qualified Institutional Buyers (“QIBs”) (the “QIB Category”), provided that the Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Category to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the “Anchor Investor Portion”), of which one-third is to be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors.
Further, 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
All Investors (except Anchor Investors) shall mandatorily participate in this Offer only through the Application Supported by Blocked Amount (“ASBA”) process, and shall provide details of their respective bank account in which the Bid amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in the Issue. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.
SBI Capital Markets and HDFC Bank are the Book Running Lead Managers to the Offer (“BRLMs”). The Registrar to the Offer is Link Intime India Private Limited. The Equity Shares of the Company are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.