Sadbhav Infrastructure Project debuts at Rs 111, up 8%
In fact, it was better than expected listing because analysts were expecting to be bad debut due to its debt burden of Rs 6,600 crore.
September 16, 2015 / 03:24 PM IST
Shares of Sadbhav Infrastructure Project (subsidiary of Sadbhav Engineering) listed at Rs 111 on the National Stock Exchange, higher by 7.8 percent over its issue price of Rs 103. In fact, it was better than expected listing because analysts were expecting to be bad debut due to its debt burden of Rs 6,600 crore.
At 10:12 hours IST, the stock was trading at Rs 111.30, up 8 percent after hitting an intraday high of Rs 112.45 and low of Rs 108.30.
The issue opened for subscription during August 31-September 2. The company raised Rs 492 crore through public issue that comprised of Rs 425 crore fresh issue and an offer for sale of up to 32.36 lakh shares by existing investors - Xander and Norwest.
The funds raised through the issue will be utilised for repayment of loans, equity investment and advancing of subordinate debt to its subsidiary Shreenathji Udaipur Tollway (SUTPL) and for part-financing of the SUTPL project.
Promoter holding reduced to 68.95 percent from 78.10 percent post issue.
Sadbhav Infra incorporated in 2007 as a developer and operator for highways, road and related projects on a BOT basis. It owns 10 road BOT projects, six of which are operational & one partially operational while three are expected to be operational starting October 2015 to June 2016. Nine of the 10 projects are toll based, while one is annuity based project.
Its consolidated revenue increased by 35 percent year-on-year to Rs 500 crore in FY15 compared to FY14. Operating profit rose by 28 percent YoY to Rs 337 crore. However, consolidated net loss stood at Rs 302 crore in the financial year gone by. Depreciation and finance charges soared 54 percent and 48 percent to Rs 141 crore and Rs 526 crore Y-o-Y, respectively.
Posted by Sunil Shankar Matkar