H.G. Infra Engineering IPO – Details, Price Band, Analysis


H.G. Infra Engineering Limited (HGIEL) – an ISO 9001:2015, ISO 14001:2004, OHSAS 18001:2007 certified Construction Company – is planning to raise INR 457.70 Cr (300 Cr of Fresh Issue + 157.70 Cr of OFS) via initial public offer (IPO)

H.G. Infra Engineering – Company Profile

  • Incorporated in the year 2003, H.G. Infra Engineering Ltd (HGIEL) is Jaipur, Rajasthan based an infrastructure construction, development and management company.
  • The Company focus area is road projects, including highways, bridges and flyovers.
  • The Company’s main business operations include providing engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis and undertaking civil construction and related infrastructure projects.
  • HGIEL is also engaged in executing water pipeline projects and are currently have two water supply projects in Rajasthan.

Client List

The Company’s major clients in Public sector include National Highways Authority of India (NHAI), MORTH, Public Works Department of Rajasthan (PWD), Military Engineering Services (MES), Jaipur Development Authority (JDA), and the client in private sector is IRB-MRM.

Completed Projects

During the last 5 years, the company has completed 13 projects in the roads and highways sector aggregating to a total contract value of INR 16,74.89 Cr, which included construction, improving, widening, strengthening of two and four lane highways, construction of high level bridge and construction of earthen embankment, culverts and cart track underpasses.

Ongoing Projects

As on 30 September 2017, the company has 21 ongoing projects in the roads and highways sector.

Company Promoters

Mr. Harendra Singh

  • Profile: Aged 50 years, is the Chairman and Managing Director of our Company. He holds a bachelor’s degree in engineering (civil) from Jodhpur University. He has been on the Board since the incorporation of our Company, and was reappointed for a period of five years with effect from May 15, 2017.
  • Experience: He has 23 years of experience in the construction industry. He has been awarded by the Indian Achievers Forum for his outstanding achievement in business and social service, on August, 5 2016 and on November 11, 2016.

Mr. Vijendra Singh

  • Profile: Aged 52 years, is a Whole-time Director of our Company. He has been on the Board since the incorporation of our Company, and was reappointed for a period of five years with effect from May 15, 2017.
  • Experience: He has 23 years of experience in the construction industry. He is responsible for the overall functioning of our Company.

Mr. Girish Pal Singh

  • Profile: Aged 57 years, is a Non-Executive Director of our Company. He has been on the Board since the incorporation of our Company.
  • Experience: He has 23 years of experience in the construction industry.

 

IPO Opening / Closing Date

H.G. Infra

IPO Details – Price, Minimum Bid and Other

H.G. Infra

H.G. Infra – Financial Performance

H.G. Infra

 

Revenues

H.G. Infra Engineering shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 325 Cr in FY 2013 to INR 974 Cr for the period ended FY 2017.

Profits

Though the company has shown steady growth in revenue, the company fails to register growth in profits in these 5 years. Starting from INR 13 Cr of profits in FY 2013, the company’s earnings stood at INR 49 Cr for the period ended FY 2017.

 

CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends SUBSCRIBE ratings on H.G. Infra Engineering IPO, keeping a long-term view in mind.

 

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Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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