1. SREI Infra unit Bharat Road Network’s IPO to open on 6 September: 3 things to know

SREI Infra unit Bharat Road Network’s IPO to open on 6 September: 3 things to know

Bharat Road Network IPO will open on 6 September 2017 as the SREI Infrastructure Finance backed firm has received the approval of registrar of companies yesterday.

By: | Updated: August 24, 2017 12:23 PM
The road developer company has proposed to sell up to 2.93 crore equity shares for a face value of Rs 10. (Image: Reuters)

Bharat Road Network IPO will open on 6 September 2017 as the SREI Infrastructure Finance group firm has received the approval of registrar of companies yesterday, the company said in an exchange filing. Earlier in June 2017, the Kolkata-based company has received a green signal from the capital market watchdog Securities and Exchange Board of India for its IPO.

IPO bidding

The IPO of Bharat Road network will remain open for three days starting from 6 September to 8 September. The road developer company has proposed to sell up to 2.93 crore equity shares for a face value of Rs 10. However, the price range and the issue size of the subscription has not been announced yet. INGA Capital, Investec Capital Services (India) and SREI Capital Markets are the book running lead managers to the issue while Karvy Computershare is the Registrar to the issue.

IPO proceeds

The proceeds from the public issue of BRNL of 2.93 crore equity shares will be utilised for advancing of subordinate debt in form of interest free unsecured loan to subsidiary, STPL, for part financing of the STPL Project; acquisition of the subordinated debt in the form of unsecured loans/OCPIDs/warrants/OCDs, advanced/held by SREI to STPL, KEPL and MTPL and general corporate purposes. According to its draft prospectus, Rs 52.4 crore of the amount will be directed towards subordinated debt and Rs 372.2 crore will be used to acquire unsecured debt held by SREI and its SPVs (special purpose vehicles).

Company profile

Bharat Road Network was incorporated in the year 2006, since then the company is involved in BOT (build–operate–transfer), mainly focused on development, implementation, operation and maintenance of roads and highways projects. BRNL also operates toll based BOT Projects wherein we have the right to collect toll or user fees. It also generates revenue from project management consultancy and provides project management services to BOT projects. At present, all the projects are implemented through special purpose vehicles, either through its subsidiaries or in partnership with other infrastructure players. BRNL is also involved in the development, operation, and maintenance of national and state highways in several states in India. The company has projects in states like Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra, and Odisha.

Earlier in this month, SREI Infrastructure Finance Ltd is mulling an IPO for its equipment finance unit to a maximum of 25% of the post-issue paid-up capital. The success of the IPO is subject to the approval of shareholders, market conditions and receipt of requisite approvals from statutory and other authorities, the company said during a meeting on August 17. The board of SREI Equipment Finance Ltd, wholly owned subsidiary SREI Infrastructure Finance Ltd had approved to evaluate the IPO, the company announced.

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