H.G. Infra Engineering Ltd IPO Message Board (Page 13)

HG Infra may end up in a flop show. Chances of high subscription figures looks bleak.

any reason why QIB still 0?

Qualified Institutional Buyers (QIBs)      0
Non Institutional Investors(NII)      0.0526
Retail Individual Investors (RIIs)      0.4137
Employee Reserved      0
Reservation PortionShareholder      0
Total      0.2216

QIB have not yet placed the bid. So its zero till now

very poor subscription......

Chances of full allotment

HG Infra IPO is reasonably priced at at the higher band Rs. 270.

Stable business model, healthy order book and govt. thrust on infra n road sector is positive for company.

Short term investors MAY APPLY for SMALL LISTING GAINS of 5-10% ..

WILL EARN APPROX .... 12 TO 17 RS PREMIUM .. MUST APPLY

If the Issue is under subscribed ex: Only 70-80% subs after 3 days. Will they cancel the IPO or just allot for 70-80% guys?

If my memory serves well, this is first IPO I am seeing ZERO QIB on day 1 in recent times.

Refer AU Finance QIB figures....

GMP of H G Infra is 25-28

Should i apply for listing gain ? Coz first figure is too bad..

H G Infra Engineering Ltd. IPO schedule:
23 Feb – Anchor List
26 Feb – Offer Opens
28 Feb – Offer Closes
06 Mar – Finalisation of Basis of Allotment
07 Mar– Unblocking of ASBA
08 Mar – Credit to Demat Accounts
09 Mar – Listing on NSE & BSE

Total issue size Rs.462 crores @ upper price band (Fresh issue of Rs.300 crores i.e. 1,11,11,111 and offer for sale of 60 lakh shares by promotors Harendra Singh, Vijendra Singh, Girish Pal Singh each 10 lakh & Hodal Singh 30 lakh)

Face Value - Rs.10 per share
Price band - Rs.263-270 per share
Lot size - 55 shares

H G Infra Engineering founded in 2003 is Jaipur based Infra construction, development & management company. Most revenues came from Rajasthan & Maharashtra and mainly from civil construction, roads and water pipeline project. It has completed 13 projects in the past and of approx Rs.1675 crores and having order book of 3700+ crores.

Issue constitutes 26.25% of post issue paid up capital of the company. Company has issued bonus in the ratio of 2:1 in Sep-2017.

Basic EPS & RoNW on consolidated basis:
2015 - Rs.1.01 - 5.49%
2016 - Rs.7.64 - 28.84%
2017 - Rs.9.87 - 30.32%
2018(HY) - Rs.4.48 - 14.27%
NAV as on Sep.30, 2017 is Rs.37.95 per share.

@270 Market Cap is Rs.1759.6 crores.

Equity shares outstanding prior to the offer are 5,40,60,000 shares.
Equity shares outstanding after the offer are 6,51,71,111 shares.
Offer for sale of equity shares 60 lakh.

Category wise breakup:

QIB (50%): Rs.231 crores i.e. total 85,55,555 shares from which 60% (51,33,333) will be allocated to anchor investors and remaining 34,22,222 available for bids by QIB.

HNI/NII (15%): 25,66,667 shares amounting to Rs.69.3 crores.

Retail (35%): Rs.328 crores i.e. 59,88,889 shares so total 1,08,888 lots available for allotment in retail category.

Subscription required for 1X
QIB - Rs.92.4 crores (shares of Rs.138.6 out of 231 crores already allocated to anchor investors)
HNI - Rs.69.3 crores
Retail - 1,08,888 forms/lots

Interest cost for HNI for 1X @6% for 7 days
31 paise for 1X that means Rs.0.31 per share on applied shares. If we assume 200X HNI subscription than interest cost will be Rs.62 per share.

FY17 PE 35
@HY18 PE 30

Peer comparison:
Co. --------- FY18 PE (upto Q3)

HG Infra Engineering - 30
Dilip Buildcon Ltd -------23.6
Ashoka Buildcon --------- 21
KNR Construction -------17.3
Sadbhav Engineering -- 33.5
PNC Infratech --------------22.6

The objects of the issue is to repay certain borrowings totalling Rs 115.52 crore and purchase of capital equipment worth Rs 90.03 crore. The balance is for other corporate purposes, apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to the existing shareholders.

So overall healthy balancesheet, good order book, low debt, good growth, growing infra sector are plus point while fully price, 95% revenues from two staes only, election coming in Rajasthan may affect this.

So conclusion is that apply only for medium to long term. Moderate listing expected so this is not for good listing gain, other good companies are available at fair price for short to medium term. So be wise, do some analysis and than decide.

Thanks and regards
rrpjodhpur

Thanks Patel ji.

????????

Poor show on Day-1.

Total subscription -------- 11%

Retail ---------------------- 20%

@Anarchist

I am not worried about the FED in isolation per se but believe that FED move in March will raise the bond yields to a level once again where it will be have disastrous impact in equity valuations in US. We have already got glimpse of the same earlier in the current month when DOW sell off took the index down by 4 figure mark. Any US market sell off will lead to a major sell off in world market. Along with this LTCG from 1st April is leading to gradual churn this month in individual as well as mutual fund portfolios leading to further consolidation in Indian Market.

All this is stacked up in March. Hence the caution. Will be on toes.....till listing......

@ Cool Sunshine

Markets won''t fall due to March FED rate hike...The worry that they might have to raise rates 4 times has subsided due to the dovish stance sighting a risk similar to stagflation (Inflation with low productivity).

Like you too pointed out, the real trouble is LTCG, artificially suppressed rates, massive frauds, scores of different populist schemes launched every now and then.etc. If the monsoon is bad this time, the bull would be gone....

After this, Forthcoming IPOs plz

H G INFRA IPO APPLY KARAY K NAHI ANE GMO SU CHE

Rites Ltd got sebi approval to float it''s IPO.

.................. H.G. Infra Engg. .............

- Rajasthan based infra-construction player(highway, bridges)
- main presence in maharashtra, rajasthan. Planning to expand
- orderbook 3700cr as per Nov, 2017
- 67% revenue frm Public sector clients, rest frm private

- M.cap(@270) = 1760cr
- Past 3 yr CAGRs(14-17)
REVENUE = 30%
PAT = 40%
________________________________________
Peer
............... PE...... P/S......O/S.......PAT cagr

HG......... 35....... 1.7x......3.4x.......40%
Dilip........33........2.7x.......3.1x......24%
Ashok.....25........1.5x.......2.1x......NA
KNr.........37.........2.6x.......2x.........12%
PnC.........41.........2x.........2.4x......40%

Figures r for/till 2017 only
O/S = orderbook/Sales, approx figures

So, HG superior in almost parameter ,
EBITDA Margins though are lesser.
________________________________________

Total shares post issue : 6,51,71,111
2017 PAT : 49cr
2018 Expected PAT : 58cr (5% margin)

2017 PE : 35
2018 PE : 30( EPS : 8.9rs)

----------------
Avg industry PE = 40x

@ 40 PE Price = 356 rs(1 yr after list)

@2x P/S = 2100cr valuation = 320 rs ( 2 months after listing)

@ 33 PE = 297 INR( listing)

Imo, 2x P/S and 33 PE is fair to moderate valuation of this type of highly growth infra firm
_______________________________________

Rii forms reqd just above 1L, possible allotment chances 1/5 to 1/6
_______________________________________

ConcL..

Looking at orderbook, HG may announce good Q3 & Q4 as well, after that rerating possible based on number of FY19 or change in govt(if any!)

So, one may subscribe for 1.5-2 FD listing gain and/or for medium term.


Consider above as an imo only ????

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Gamble bhai kuch toh reply karo.aapke ideas ke liye bahut sare log wait kar rahe hai.pls post ur views on all the ipos

Sir y not replying. More ipos but absence of u .pls post ur review.very much confusing which to apply .pls post sir

I''m sure the policymakers aren''t done yet ..They would certainly keep coming up with so many new projects and schemes that one might end up losing count........If one has to buy, one has to buy a real quick before this theme breaks all bearish bounds and heads for the heavens permanently....

Btw ..Apart from this gem ..One may also consider a few secondary market Infra / Engineering / Bharat themes ...like L&T / KNR which are trading at P/E of 23 / 17 and P/BV of 3.4 / 3.9 respectively ...

HG INFRA - grey market activity is on with 30 to 32.
SUBSCRIBE THIS IPO

Are you a buy forms in Ahmadabad ?

Fully invested in secondary market. No money to apply in IPO now. Secondary market will give superior returns compare to IPO route.
Look at Vindhya, Shilpa, NGL Finechem, Kajaria, Indian hume pipe, Asian paint, Kansai Nerolac. very good level to buy.

Sold@300 kostak(fix)
8 application
Good luck

I am new here, how to sell application in Gmp???

Please give me ur number or my contact no :6351138099

At 3 pm subscription figures HGIE Ltd.,
Qib 0%
Nii 0%
Rii 4%
Total 2%

ARE BHAI LOK EBHI ASTER DM KE JAISA OPEN HOGA