HG Infra shares open flat on stock market debut
Mumbai: Shares of HG Infra Engineering Ltd made a tepid debut on the stock market on Friday. It was listed at Rs270 per share on the BSE, unchanged from its issue price.
At 11.17am, HG Infra shares traded at Rs272, up 0.74% from its issue prices of Rs270. The stock touched an intraday high of Rs276 and a low of Rs252.60. Benchmark indices Sensex and Nifty were also range-bound in early trade.
The price band for the Jodhpur-based company’s initial public offering (IPO) was Rs263-270 and raised Rs462 crore through the share sale, which closed on 28 February.
The issue was subscribed three times, while it mopped up Rs138 crore from anchor investors. Proceeds of the issue will be utilized for purchasing equipment, repayment of debt and meeting general corporate expenses.
HG Infra is an infrastructure construction, development and management company which focuses on road projects, including highways, bridges and flyovers. The company has executed projects across various states in India covering Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh.
At the end of November, its outstanding order book stood at Rs3,700 crore. Maharashtra and Rajasthan currently constitute 95% of the company’s order book. Its order book has grown to Rs4,000 crore at the end of FY17 from Rs1,000 crore in FY15.
It has delivered sales, earnings before interest, tax, depreciation and amortization, net profit compounded annual growth rate (CAGR) of 31%, 33% and 42%, respectively, over FY14-17, with return on equity (ROE) of 25% over the last two years.