Bharat Road Network Rs 600 crore IPO: 5 things to know

By: | Published: August 31, 2017 12:16 PM

At the upper end of the price band, Bharat Road Network looks to raise Rs 600 crore through the initial public offering.

Bharat Road Network Ltd is slated to launch its initial public offering worth Rs 600 crores on September 6th. (Image:Reuters)

Bharat Road Network Ltd is slated to launch its initial public offering worth Rs 600 crores on September 6th, according to a statement released by the company yesterday.  As the IPO market is buzzing with activity, as many as four companies, including Bharat Road Network Ltd and and Matrimony.com, are expected to come out with their IPOs next month alone to raise over Rs 2,500 crore. Here are five key details to watch out for in the Bharat Road Networks Ltd’s initial public offering-

IPO Details-

The company has priced its shares in a band of Rs 195-205 for the share sale. The offer is a fresh issue of 2.93 crore shares and it constitutes 34.90% of the post issue paid up capital of the company. The IPO will see the promoter SREI Infrastructure Finance Ltd sell up to 29.3 million shares in a fresh issue of shares. At the upper end of the price band, Bharat Road Network looks to raise Rs 600 crore through the offering. The share sale will end on 8 September.

Where the proceeds will be used-

The company plans to use the proceeds of the fresh issue for advancing of debt in the form of an interest-free unsecured loan to its subsidiary, acquisition of subordinated debt given by SREI to three Special Purpose Vehicles (SPVs) and general corporate purposes.

About the company-

Bharat Road Network is a road build-operate- transfer BOT company in India focused on development, implementation, operation, and maintenance of roads and highways projects. The company is involved in the development, operation and maintenance of national and state highways in several states in India with projects in Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha through partnerships with experienced EPC players in the local space where the project is located.

The company’s portfolio mix-

The company’s portfolio includes six BOT projects, of which two are operational under final COD (date of commencement of commercial operation), three are operational under provisional COD, and one is under construction. Projects operational under final and provisional CODs cover approximately 1,622.44 lane km, including major and minor bridges. Projects under construction involve development of 400.24 lane km.

IPO market so far-

A total of 17 companies, including prominent names such as BSE, Avenue Supermarts, Housing and Urban Development Corporation (HUDCO), Eris Lifesciences and Cochin Shipyard have collectively raised more than Rs 12,000 crore through initial share-sale offers.As per PTI reports, the IPO segment is expected to see better performance in 2017 compared to last year when 26 companies collectively mopped up more than Rs 26,000 crore — making 2016 the best in six years.

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