Jodhpur-based infrastructure construction firm HG Infra Engineering has raised Rs.138 crore by selling shares to anchor investors before initial public offering took place. The anchor investors bought these shares on Friday as per stock exchange release. The IPO begins today.
The filing further revealed that the construction firm allotted 3.13 million shares in the price band of Rs.263-270 to 10 asset management companies and one insurer.
The anchor investors are DSP BlackRock India Tiger Fund, HDFC, SBI Mutual Fund, Aditya Birla Sun Life, Reliance Capital, LT Mutual Fund, UTI Mutual Fund, Kotak Mutual Fund, IDFC Asset Management, and HSBC Mutual Fund bought shares. Aditya Birla Sun Life Insurance was the sole insurer who also took part.
The companys total issue size at the upper end is pegged at Rs.462 crore. The IPO will be open from 26 to 28 February 2018. The company will issue fresh shares worth Rs.300 crore while its promoters will sell 6 million shares worth RS.162 crore.
The company plans to use Rs.90 crore of the raised funding to buy better equipment, and approx. Rs.115 crore to repay debt and an undisclosed amount for general corporate purposes.