About the Company:
H.G Infra Engineering Ltd is a infrastructure construction, development and management company with extensive experience in the area of road projects, including highways, bridges and flyovers.
Company’s main business operations include (i) providing engineering, procurement and construction (“EPC”) services on a fixed-sum turnkey basis and (ii) undertaking civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector.
They have also forayed into executing water pipeline projects and are currently undertaking two water supply projects in Rajasthan on turnkey basis which includes the designing, construction, operation and maintenance of the project.
They have executed or are executing projects across various states in India covering Rajasthan, Uttar Pradesh Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh.
During the last five years, Company has completed 13 projects above the contract value of Rs.40 crores in the roads and highways sector aggregating to a total contract value of Rs.16,74.89 crores, 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 November 30, 2017, Company has 21 ongoing projects in the roads and highways sector which includes construction, improving, widening, strengthening, upgradation and rehabilitation of two, four and six lane highways construction of high level bridge and construction of road network.
As of November 30, 2017, Company had a total Order Book of Rs.37,07.8 crores, consisting of 21 projects in the roads and highways sector, four civil construction projects and two water supply projects.
Company is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH for contract values of up to ₹ 8,06.6 crores based on Company’s technical and financial capacity.
Execution of projects from public sector clients accounted for approximately 73.02% of total revenue for the Fiscals 2017.Company’s public sector clients include NHAI, PWD, MES and Jaipur Development Authority.
Company has also executed road construction contracts as a sub-contractor for various private sector clients such as Tata Projects Limited and IRB-Modern Road Makers Private Limited.
Over the years, they have gradually added a fleet of modern construction equipment and employed manpower to supplement the growth of construction business. As on November 30, 2017,Company’s equipment base comprised of 1,064 construction equipment.
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Breakdown of order Book:
Breakdown of Order Book Geographic wise:
Management Team:
- Mr. Harendra Singh (Designation: Chairman and Managing Director)
- Mr. Vijendra Singh (Designation: Whole-time Director)
- Mr. Girish Pal Singh (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Harendra Singh | 15,351,516 | 3.33 |
| Mr. Vijendra Singh | 12,723,600 | 3.33 |
| Mr. Girish Pal Singh | 13,418,058 | 3.33 |
Objectives of the Issue:
Offer for Sale: (Around Rs.162 cr)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs.300 cr)
- Purchasing capital equipment;
- Repayment/ prepayment in part or in full, of certain indebtedness.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Purchasing capital equipment | 90.03 |
| Repayment in part or in full, of certain indebtedness | 115.5 |
| General Corporate Purpose | 94.47 |
| Net Proceeds | 300 cr |
Positives for the Company:
Established roads and highways sector focused construction developer.
- They have an experience of over 14 years in construction and development of major infrastructure road projects including highways, bridges, flyovers and other related infrastructure activities, across various states in India.
- Company’s revenue from execution of projects in the roads and highways sector constituted approximately 86.02% of their total consolidated revenue in the Fiscals 2017.
- Company’s primary focus on the roads and highways sector has helped them in gaining technical expertise of undertaking projects of different sizes and involving varying degree of complexity while simultaneously helping them to acquire a fleet of modern construction equipment and employ manpower to supplement the growth of their construction business.
Continuous Growth in Order Book.
- The size of company’s Order Book for roads and highways projects grew from Rs.855 crores as of March 31, 2015, to Rs.3919 crores as of March 31, 2017 at a CAGR of 114.09%.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|
| Revenue | 472.9 | 367.59 | 743.28 | 1058.58 | 569.52 |
| Net Profit | 17.1 | 9.2 | 30.1 | 49.2 | 29.3 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| H.G Infra Engineering Ltd | 10 | 9.87 | 27.35 | 30.32% | 32.54 |
| Dilip Buildcon Ltd | 2 | 27.56 | 33.78 | 20.81% | 125.69 |
| KNR Constructions Ltd | 2 | 8.17 | 37.61 | 11.24% | 62.48 |
| PNC Infratech Ltd | 2 | 4.62 | 41.67 | 8.09% | 56.96 |
| J Kumar Infraprojects Ltd | 5 | 13.95 | 24.23 | 7.60% | 183.58 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th February 2018 |
| Issue Closes on:. | 28th February 2018 |
| Issue Price | Rs.263 – 270 |
| Face Value | Rs.10 |
| Minimum Lot | 55 shares |
| Minimum Investment | Rs.14,850 |
| Issue Constitutes | 26.25% |
| Issue Size | Rs.461.2 cr ($72.03 million) |
| Market Cap | Rs.1759.62 cr ($274 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 60,00,000 |
| Equity Shares Offered (Fresh) | 1,11,11,111 |
| Total Equity Shares Offered (OFS +Fresh) | 1,71,11,111 |
| Equity Shares Prior | 5,40,60,000 |
| Equity Shares after the issue | 6,51,71,111 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 6th March 2018 |
| Initiation of Refunds | on or Before 7th March 2018 |
| Credit of Equity Shares: | on or Before 8th March 2018 |
| Listing Date: | on or Before 9th March 2018 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 01/03/18 | H.G Infra Engineering Ltd | 263 – 270 | 21 – 23 | 800 – 850 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:30 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 34,33,647 | 0.00 | 0.00 | 8.37 |
| NII | 26,11,027 | 0.39 | 0.68 | 4.97 |
| Retail | 60,92,396 | 0.2 | 0.85 | 3.01 |
| Employee | ———– | —- | —- | —– |
| TOTAL | 1,21,37,070 | 0.109 | 0.44 | 4.95 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.87 | 27.35 | 30.32 | 32.54 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 30% |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| H.G Infra Engineering Ltd IIIrd Floor, Sheel Mohar Plaza A-1, Tilak Marg, C-Scheme Jaipur 302 001, Rajasthan India Telephone: +91 141 4106040 Facsimile: +91 141 4106044 Website: www.hginfra.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, L.B.S. Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Telephone: +91 22 4918 6200 Facsimile: +91 22 4918 6195 E-mail: hginfra.ipo@linkintime.co.in Website: www.linkintime.co.in |
