Bharat Road to launch Rs600 cr IPO on 6 Sep
Bharat Road Network Ltd (BRNL), a road and highways company, on Wednesday said that it will launch its initial public offering on 6 September.
The IPO will see SREI Infrastructure Finance Ltd-promoted BRNL sell up to 29.3 million shares in a fresh issue of shares.
The company has priced its shares in a band of Rs195-205 for the share sale. The IPO will see the company dilute 34.9% stake.
At the upper end of the price band, BRNL will end up raising around Rs600 crore through its public offering. The share sale will end on 8 September.
“The company proposes to utilize the net proceeds of the issue for (i) advancing of subordinate debt in the form of interest-free unsecured loan to its subsidiary (Solapur Tollways Pvt. Ltd) for part financing of the project; (ii) acquisition of the subordinated debt given by SREI to three special purpose vehicles, i.e. Solapur Tollways Private Limited, Kurukshetra Expressway Pvt. Ltd and Mahakaleshwar Tollways Pvt. Ltd; and (iii) general corporate purposes,” the company said in a statement.
Inga Capital Pvt. Ltd, Investec Capital Services (India) Pvt. Ltd and Srei Capital Markets Ltd are managing the share sale.
Incorporated in 2006, BRNL is involved in the development, operation and maintenance of national and state highways in the states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha.
BRNL has a portfolio of six build, own and transfer (BOT) road projects of which five are operational and one is under construction.
On Monday, Mint reported that several firms including BRNL are planning to launch their IPOS in September.
Other companies that have firmed up initial share sale plans for the next month include online matchmaking company Matrimony.com Ltd, electronics manufacturing services provider Dixon Technologies (India) Ltd and real estate services provider Capacit’e Infraprojects Ltd.
Dixon Technologies too plans to launch its Rs600 crore IPO on 6 September. The company has priced its shares in the range of Rs1,760-1,766 per share.
So far this year, 15 firms have raised Rs12,589.94 crore through the IPO route, data from primary market tracker Prime Database shows. In 2015 and 2016, 47 companies raised a total of Rs40,107 crore through IPOS, data shows.
The highways firm has set Rs195-205 price band for shares