The Sadbhav Infrastructure Project Ltd (SIPL) was incorporated as an asset holding company in the year 2007 for roads and other infrastructure BOT (Build Operate Transfer) projects. Sadbhav Infrastructure fundamentally deals in development, operation and maintenance of highways, roads and related projects. Other than civil construction projects, the company undertakes comprehensive work on contract basis. The company has a portfolio of 10 built-operate-transfer projects of which six are fully operational; nine are toll projects and one is an annuity project.
Sadbhav Infrastructure Project has now raised a staggering sum of 210 crores from its anchor investors. The Sadbhav Infrastructure Project, a subsidiary of Sadbhav Engineering, has already opened its IPO (Initial Public Offering) for subscription on Monday 31st August.
The price band of the share has been fixed from Rs 100 to Rs 103 per piece. The issue will be shutting its doors for the subscription on September 2. The fresh equity shares in the issue aggregating up to an amount of Rs 425 crores and an offer for sale of up to 32,35,762 which is so shared by Xander Investment Holding XVII Limited and up to 32,35,762 shares by Norwest Venture Partners VII-A-Mauritius. Sadbhav plans to offer for sale of up to 32.36 lakhs equity shares by existing investors and that includes the anchor investors portion.
In this issue, the anchor investors are HDFC Mutual Fund, Tata MF, Nomura MF, Morgan Stanley, Amansa, Tata AIA Life and SBI MF. The minimum bid lot is marked at 145 equity shares and in multiple of equity shares thereafter. These equity shares are proposed to be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). The funds that this project will gain will be used for the repayment of loans, equity investment, and advancing of its subordinate debt to its subsidiary Shreenathji Udaipur Tollway Pvt Ltd (SUTPL) and part financing of the SUTPL projects.
For this issue the book running lead managers are the ace players in the country like Kotak Mahindra Capital Company, Inga Capital, Edelweiss Financial Services, ICICI Securities, and Macquarie Capital Securities (India)
It is the fifth company to be hitting the capital market this month. Prior to Sadbhav, the IPOs of four companies are already over-subscribed they are- Navkar corporation, Pennar Engineered Building Systems, Shree Pushkar Chemicals and Fertilizers and Power Mech Projects. The Prabhat Dairy’s initial share plan is currently underway. Angel Broking has a “neutral” rating on the issue. The brokerage says, “Positives emanating from favourable near term prospects would be offset by high debt of the company.” ICICI Securities has not rated the issue.