Bharat Road Network to raise ₹600 crore through IPO
Plans to allot 75% of the issue to qualified institutional buyers
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