IPO Snapshot
 
H.G. Infra Engineering Ltd.
Issue Open Date 26-Feb-18  
Issue Closing Date 28-Feb-18  
Application Money 100  
Allotment Money  
Price Band 263 - 270  
Minimium Application No. 55  
Issue Size (Shares) 12137070  
Market Lot 1  
Objective
The Net Proceeds of the Fresh Issue are proposed to be utilized by our Company for the following objects:(a) Purchasing capital equipment;(b) Repayment/ prepayment in part or in full, of certain indebtedness; and(c) General corporate purposes.
Category No. of Shares No. of Shares Subscription Ratio
  Offered / Reserved Bid For  
Non-Institutional Investors   2611027   12968945   4.9669900004864  
Qualified Institutional Buyers   3433647   28736070   8.36896454411301  
Retail Individual Investors   3433647   28736070   8.36896454411301  
Business Description:
OverviewWe are an infrastructure construction, development and management company with extensive experience in ourfocus area of road projects, including highways, bridges and flyovers. Our 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 theroads and highway sector. We have also forayed into executing water pipeline projects and are currentlyundertaking two water supply projects in Rajasthan on turnkey basis which includes the designing, construction,operation and maintenance of the project.We have executed or are executing projects across various states in India covering Rajasthan, Uttar PradeshHaryana, Uttarakhand, Maharashtra and Arunachal Pradesh. During the last five years, our Company hascompleted 13 projects above the contract value of ? 400.00 million in the roads and highways sector aggregatingto a total contract value of ? 16,748.94 million, which included construction, improving, widening, strengtheningof two and four lane highways, construction of high level bridge and construction of earthen embankment, culvertsand cart track underpasses. As on November 30, 2017, our Company has 21 ongoing projects in the roads andhighways sector which includes construction, improving, widening, strengthening, upgradation and rehabilitationof two, four and six lane highways construction of high level bridge and construction of road network. Our OrderBook for these ongoing projects in the roads and highways sector amounted to ? 35,853.10 million as onNovember 30, 2017, accounting for 96.70% of our total Order Book.As of November 30, 2017, we had a total Order Book of ? 37,078.10 million, consisting of 21 projects in theroads and highways sector, four civil construction projects and two water supply projects.We are pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH for contract valuesof up to ? 8,066.60 million based on our Company’s technical and financial capacity as on March 31, 2017. Whilewe independently execute the projects where we are pre-qualified to bid on an independent basis, we also formproject specific joint ventures and consortiums with other infrastructure and construction companies, in particular,where we are not pre-qualified to bid independently or when a project requires us to meet specific eligibilityrequirements in relation to certain large projects, including requirements relating to particular types of experienceand financial resources.We have a track record in executing projects of different sizes particularly in the roads and highways sector. Webelieve that over the years, our Company has become an established construction developer in the roads andhighways sector with strong execution capabilities and with a reputation of delivering quality projects. Forinstance, we have received a letter of appreciation in the year 2012 from Larsen and Toubro Limited for being themost quality consciousness sub-contractor. We have also received a bonus from the Chief Engineer, NationalHighways, PWD Lucknow for early completion of widening and strengthening of NH-96 Faizabad-AllahabadRoad (from 0.00 kilometers to 46.470 kilometers) in Uttar Pradesh.Between Fiscal 2018 and Fiscal 2022, CRISIL Research expects an investment of ? 4.30 trillion in nationalhighways, up 2.9 times in the next five years compared with the past five years. Notably, the government willaccount for more than half of the investment. (CRISIL Research, Roads Sector in India, January, 2018). Executionof projects from our public sector clients accounted for approximately 73.02%, 57.87% and 54.23% of our totalrevenue for the Fiscals 2017, 2016 and 2015, respectively. Our public sector clients include NHAI, PWD, MESand Jaipur Development Authority. We have also executed road construction contracts as a sub-contractor forour private sector clients such as Tata Projects Limited and IRB-Modern Road Makers Private Limited. Webelieve that our quality of work and project execution skills have allowed us to enhance our relationships withexisting clients and to secure projects from new clients. For instance, we have been recently awarded 7 EPCcontracts in Maharashtra for an aggregate contract value of ? 19,045.94 million by MoRTH.While our principal business of civil construction comprises of projects in the roads and highways sector, we wereengaged in the year 2013 as the sub-contractor to execute two water supply projects in Rajasthan on a singleresponsibility turnkey basis, which includes the responsibility of designing, building and maintaining the projects.We have billed an aggregate revenue of ? 1,794.86 million from these water supply projects until Fiscal 2017.Our Order Book for these projects amounted to ? 557.70 million as of November 30, 2017, accounting for 1.50%of our total Order Book.Over the years, we have gradually added a fleet of modern construction equipment and employed manpower tosupplement the growth of our construction business. As on November 30, 2017, our equipment base comprisedof 1,064 construction equipment.We enjoy accreditations, such as the ISO 9001:2015, ISO 14001:2004, OHSAS 18001:2007 certification forquality management systems, environment management systems, and health and safety management systems,respectively, issued by LMS Assessment Services Private Limited.Our Promoters have an experience of more than two decades in the construction industry. Prior to theincorporation of our Company, our Promoters were associated with M/s Hodal Singh Giriraj Singh & Co.,Jodhpur, a partnership firm involved in the construction business which was taken over by our Company in 2003.For further information, see “History and Certain Corporate Matters” on page 140.In the six months ended September 30, 2017 and Fiscal 2017, 2016, 2015 and 2014 our total revenue, as restated,on a consolidated basis were ? 5,695.26 million, ? 10,585.83 million, ? 7,432.88 million, ? 3,675.93 million and? 4,729.54 million, respectively, and in Fiscal 2013 our total revenue, as restated, on a standalone basis was ?3,254.40 million. In the six months ended September 30, 2017 and Fiscal 2017, 2016, 2015 and 2014 our profitafter tax, as restated, on a consolidated basis was ? 292.78 million, ? 533.34 million, ? 353.50 million, ? 46.38million and ? 108.99 million, respectively, and our profit after tax, as restated on a standalone basis was ? 151.41million. We have been able to increase our total revenue from Fiscal 2013 to Fiscal 2017 at a CAGR of 34.30 %and our profit after tax has increased at a CAGR of 37.00% over the same period.
Promoter's Holding
Total Share Capital   54060000  
Offered to Public   11711111  
Promoter's Holding (Pre-Issue)   100  
Promoter's Holding (Post-Issue)   73.74  
Address
14
Panchwati Colony
Ratanada
Jodhpur ,
Rajasthan ,
342001
Phone : 0291 2515327
Email : cs@hginfra.com / info@hginfra.com
Website : www.hginfra.com
Registrar
Link Intime India Pvt Ltd.
C 101
247 Park
LBS Marg
Vikhroli (West)
Mumbai
Listed at
BSE, NSE
Lead Manager
HDFC Bank Ltd.
SBI Capital Markets Ltd
Promoters
Girish Pal Singh
Harendra Singh
Vijendra Singh