|Basis of Allotment|
IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS
ANNOUNCEMENT. THIS DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE.PURCHASE OR
SUBSCRIBE FOR SECURITIES. NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY
H.G. INFRA ENGINEERING LIMITED
The Company was incorporated as 'H.G. Infra Engineering Private Limited' on January 21.2003. as a private limited company under the Companies Act 1956, at Jodhpur with a certificate of incorporation granted by The Registrar of Companies, Rajasthan. Jaipur (the "RoC"). Pursuant to the conversion of the Company to a public limited company, its name was changed to "H.G. Infra Engineering Limited" and the RoC issued a fresh certificate of incorporation on June 8, 2017. For more informatics on the charges in name of the Company, see 'History and Certain Corporate Matters' on page 141 of the Prospectus dated March 5, 2018 Filed with the RoC (the "Prospectus").
Corporate Identity Number: U45201RJ2003PLC018049
Registered Office; 14. Fanchwati Colony. Ratanada, Jodhpur 342 001, Rajasthan. India. Tel: +91 291 2000307: Fax: +91 291 2515327. Corporate Office: lll" Floor. Sheel Mohar Plaza. A-1, Tilak Marg. C-Scheme, Jaipur 302 001, Rajasthan. India.Tel: +91 141 4106040; Fax: +911 141 4106044; Contact Person: Ms. Ankita Mehre, Company Secretary and Compliance Officer, Tel: +91 141 4106040; Fax: +91 141 4106044; E-mail; email@example.com; Website; www.hginfra.com
PROMOTERS OF THE COMPANY: MR. HARENDRA SINGH, MR. VIJENDRA SINGH AND MR. GIRISH PAL SINGH
Our Company has filed the Prospectus dated March 5,2018 with the RoC and the Equity Shares are proposed to be listed an the BSE Limited ("BSE,") and the National Stock Exchange of India Limitad ("USE") and the trading is expected to commence on or about March 9,2018.
BASIS OF ALLOTMENT
INITIAL PUBLIC OFFERING OF 17,111.111 EQUITY SHARES OF FACE VALUE OF RS 10 EACH (THE "EQUITY SHARES") OF H.G INFRA ENGINEERING LIMITED (OUR "COMPANY") OR THE "COMPANY") FOR CASH AT A PRICE OF RS 270 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS 260 PER EQUITY SHARE) (THE 'OFFER PRICE") AGGREGATING TO 4,620 MILLION* (THE "OFFER") COMPRISING A FRESH ISSUE OF 11,111,111 EQUITY SHARES BY OUR COMPANY AGGREGATING TO RS 3,000 MILLION (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 6,000,000 EQUITY SHARES AGGREGATING TO RS 1,620 MILLION BY THE SELLING SHAREHOLDERS, INCLUDING 1,000,000 EQUITY SHARES AGGREGATING TO RS 270 MILLION BY MR. HARENDRA SINGH, 1,000,000 EQUITY SHARES AGGREGATING TO RS 270 MILLION BY VIJENDRA SINGH, 1000,000 EQUITY SHARES AGGREGATING TO RS 270 MILLION BY GIRISH PAL SINGH (TO GETHER THE "PROMOTER SELLING SHAREHOLDERS") AND 3,000,000 EQUITY SHARES AGGREGATING TO RS 810 MILLION BY MR. HODAL SINGH (THE "PROMOTER GROUP SELLING SHAREHOLDER") AND TOGETHER WITH THE "PROMOTER SELLING SHAREHOLDERS" AS THE "SELLING SHAREHOLDERS") ("OFFER FOR SALE"). THE OFFER CONSTITUTES 26.26% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
OFFER PRECE : RS 270 PER EQUITY SHARE OF FACE VALUE OF RS
Risks to Investors:
i. The two Book Running Lead Managers (" BRLM s")
associated with the Offer have handled 21 public offers in the past three years, out of
which 4 offers closed below the Issue Price on listing date.
iv. Price Earning (P/E) Ratio based on the Diluted EPS for the year ended March 31,2017 on a standalone basis is 26.65x at the lower end of the Price Band and 27,36x at the higher end of the Price Band as compared to the average industry peer group P/E ratio of 33.84x.
BID/OFFER OPENED ON MONDAY, FEBRUARY 26,2018
The Offer is being made in terms of Rule 19(2)(b)(I) of the Securities Contracts (Regulation) Rules. 1957. as amended (the "SCRR") for at least 25% of the post-Offer paid-up Equity Share capital of our Company, through the Book Building Process and in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the SEBI ICDR Regulations'), herein 50% of the Offer is available for Allocation to Qualified Institutional Buyers ("QIBs") (the 'QIB Category'), wherein the Company and the Selling Shareholder, in consultation with the BRLMs. allocated up to 60% of the QIB Category to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the 'Anchor Investor Portion'), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors. Further, 5% of the QIB Category (excluding the Anchor Investor Portion) is available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the QlB Category is available for allocation on a proportionate basis to all QIBs (other than Anchor Invested), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer is available for allocation on a proportionate basis to Non-lnstitulional Investors and not less than 35% of the Offer is available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Investors (axcept Anchor Investors) were required to mandatorily participate in the Offer only through the Application Supported by Blocked Amount ("ASBA") process, and providing details of their respective bank account in which the Bid amount will be blocked by the Sell Certified Syndicate Banks ("SCSBs"). to participate in the Issue. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see "Offer Procedure' on page 361 of the Prospectus.
The bidding for Anchor Investor opened and closed on February 23.2018. The company received 22 applications from 11 anchor investors for 5,337,805 shares. The Anchor investor price was finalized at Rs 270 per Equity Share. A total of 5.133.150 shares ware allocated under the Anchor Investor Portion aggregating to Rs 1,385,950.500.00.
Tha Offar received 315,728" applications for 60.486.415 Equity Shares as per the bid book resulting in 5.0498 times subscription as disclosed in the Prospectus. The details of the applications received in the Offer from Retail Individual Bidders, Non-institutional Bidders. QIBs and Employee reservation portion are as under (before technical rejections):
*Including 19,413 applications which are not banked for 2,150,885 equity shares and
excluding 57 applications which are banked but did not registered for 3,520 equity Shares.
The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on March 6,2018,
A. Allotment to Retail Individual Investors (After Technical Rejections)
B. Allotment to Non-Institutional Investors (After Technical Rejections)
C. Allotment to QIBs (After Technical Rejections)
D. Allotment to Anchor Investors
The IPO Committee of the Company at its meeting held on March 7,2018 has taken on
record the basis of allotment of Equity Shares approved by the Designated Stock Exchange,
being BSE and has allotted the Equity Shares to various successful applicants. The
Allotment Advice Cum Refund Intimation will be dispatched to the address of the investors
as registered with the depositories. Further, instructions to the SCSBs have been emailed
for unblocking, of funds and transfer to the Public Offer Account on March 7,2018. In case
the same is not received within ten days, investors may contact the Registrar to the Offer
at the address given below. The Equity Shares allotted to the successful allottees have
been uploaded on or before March 8.2018 for credit into the respective beneficiary
accounts subject to validation of the account details with the depositories concerned. The
Company has filed the Listing application wih BSE and NSE on March 7,2018. The Company has
received listing and trading approval frorn NSE and BSE and the trading will commence on
or about March 9,2018.
All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole Bidder Serial number of the ASBA form, number of Equity Shares bid for, Bidder DP ID,Client ID, PAN, date of submission of the Bid cum Application Form, address of the Bidder. the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and copy of the Acknowledgment Slip received from the Designated Intermediary and payment details at the address given below:
Link Intime India Private Limited
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF H.G. INFRA ENGINEERING LIMITED.