Bharat Road Net­work to raise ₹600 crore through IPO

Plans to al­lot 75% of the is­sue to qual­i­fied in­sti­tu­tional buy­ers

The Hindu Business Line - - FRONT PAGE -

Kolkata-based Bharat Road Net­work (BRNL), a unit of Srei group, plans to raise as much as ₹600 crore through an ini­tial public of­fer­ing of shares in a price band of ₹195-205 a share. The is­sue will con­sti­tute 34.9 per cent of the com­pany’s post-is­sue paid-up eq­uity share cap­i­tal.

The share sale of 2.93 crore eq­uity shares will open on Septem­ber 6 and close on Septem­ber 8 with the BSE named as the des­ig­nated stock ex­change for the is­sue while Inga Cap­i­tal, In­vestec Cap­i­tal Ser­vices (In­dia) and Srei Cap­i­tal Mar­kets are the book run­ning man­agers. Karvy Com­put­er­share is the Regis­trar to the is­sue.

Ac­cord­ing to the com­pany, at least 75 per cent of the is­sue will be al­lot­ted on pro­por­tion­ate ba­sis to qual­i­fied in­sti­tu­tional buy­ers (QIBs). It may fur­ther al­lo­cate up to 60 per cent of the QIB por­tion to an­chor in­vestors, on dis­cre­tionary ba­sis. Not more than 15 per cent of the is­sue will be avail­able for al­lo­ca­tion on pro­por­tion­ate ba­sis to non-in­sti­tu­tional bid­ders and not more than 10 per cent will be avail­able for al­lo­ca­tion to re­tail in­vestors.

Ac­cord­ing to Ba­jrang Ku­mar Choud­hary, MD of BRNL, the pro­ceeds would be used to buy quasi-cap­i­tal de­ployed by Srei into three road spe­cial pur­pose ve­hi­cles of BRNL, in­clud­ing So­la­pur Toll­ways Pvt Ltd, Ku­ruk­shetra Ex­press­way Pvt Ltd and Ma­hakalesh­war Toll­ways Pvt Ltd as well as for ex­tend­ing sub­or­di­nate debt to the com­pany’s sub­sidiary (So­la­pur Toll­ways Pvt Ltd) for part-fi­nanc­ing of the project.

Choud­hary added that BRNL cur­rently has six projects, of which five are op­er­at­ing and one is un­der con­struc­tion. The com­pany is look­ing at an or­der book of ₹3,500-4,000 crore for the next year.

Post is­sue, Srei’s stake in BRNL will be re­duced to 19.5 per cent from the cur­rent 30 per cent.

Arm SEFL’s plans

Ear­lier this month, Srei Equip­ment Fi­nance Ltd (SEFL), a wholly-owned sub­sidiary of Srei In­fra­struc­ture Fi­nance, an­nounced plans for di­lut­ing up to 25 per cent of its eq­uity cap­i­tal through a public is­sue.SEFL’s IPO could hit the market by the end of this fi­nan­cial year and the is­sue size could be in the range of ₹1,800-2,000 crore.

Ba­jrang Kumar Choudhary MD, Bharat Road Net­work

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