The initial public offer (IPO) of Jaipur-based infrastructure construction, development and management company, HG Infra Engineering, was subscribed 0.44 times with investors bidding for around 53.19 lakh shares of the 1.21 crore shares on the second day of the offer. High Networth Individuals (HNIs) bid for 1.85 lakh shares of the 26.11 lakh shares on offer to them, while retail investors bid for 51.33 lakh shares of the 60.92 lakh shares reserved for them. On February 23, HG Infra Engineering finalised allocation of 51.33 lakh shares at Rs 270, aggregating to Rs 138.59 crore to anchor investors. Anchor investors include DSP Blackrock India Tiger Fund, SBI Equity Opportunities Fund, HDFC Trustee, Aditya Birla Trustee, Reliance Capital Trustee and L&T Mutual Fund. SBI Capital Markets and HDFC Bank are book running lead managers to the offer. HG Infra Engineering has planned to raise up to Rs 462 crore from its IPO.
The company is primarily engaged in the execution of infrastructure projects like highways, roads, and bridges. The company also executes other civil construction projects like extension & grading of runways, railways and land development. It has further diversified into water pipeline projects in the last few years. The company has executed projects in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh. HG Infra Engineering will be the sixth company to be listed on BSE and NSE in 2018. Listing gains and the positive sentiment in the market are among the reasons attributed to the trend. Fundraising through IPOs hit a record high in 2017, with 36 companies raising Rs 67,147 crore, data sourced from Prime Database revealed.