H.G Infra Engineering Ltd

H.G Infra Engineering

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:

  1. Mr. Harendra Singh (Designation: Chairman and Managing Director)
  2. Mr. Vijendra Singh (Designation: Whole-time Director)
  3. 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)



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