Bharat Road Network Limited (BRNL) was incorporated in 2006. The Kolkata based company is a subsidiary of SREI Infrastructure Finance Limited and is engaged in the business of development, operation, implementation and maintenance of roadways and highway projects. Bharat Road Network IPO review will look into the draft prospectus of this new issue and make a critical discussion on that.
About the issue – Bharat Road Network IPO review found the following details from the DRHP submitted to SEBI.
- Issue opens on – 06 September 2017
- Issue closes on – 08 September 2017
- Issue type – Book built issue IPO
- Issue price – Rs—–per equity share
- Lot size – A minimum quantity of shares and in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 29,300,000 nos. of equity shares aggregating up to Rs——crores
- Listing Exchange – NSE, BSE
Objects of the issue – According to its draft prospectus, the proceeds from this IPO will be used to – a) Rs 52.4 crores of the amount raised will be used towards advancing as an interest-free loan and as subordinate debt to finance a lane expansion highway project undertaken by STPL, a subsidiary of BRNL, b) Rs 372.2 crores will be used by the company to acquire unsecured debt held by SREI and special purpose vehicles of SREI and c) the rest of the amount raised will be used to fulfill the demand for general corporate purposes.
Company Financials –
Bharat Road Network IPO review finds that the company has long-term and short-term debts. The company has also been making consistent losses. But the company has two big projects on the verge of completion and 6 more big projects in hand. We expect that after BRNL starts getting bills cleared from the projects completed, profits will show in the balance sheet and EPS will come in positive territory.
Conclusion – Bharat Road Network IPO review has NEUTRAL views on this issue. But the company may perform well in long term provided they get their dues from the projects in time. An investor, should therefore, may follow our articles on last day IPO investment strategy for final decision.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.