Bharat Road to launch Rs600 cr IPO on 6 Sep

Mint ST - - DEALS - BY SWARAJ SINGH DHAN­JAL swaraj.d@livemint.com MUM­BAI

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

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