Industry : Infrastructure
Net Offer to the Public: 29,300,000
Issue Size (Rs. Cr.) : 571-600
Price Band (Rs.) : 195-205
Offer Date : 6-Sep-16
Close Date : 8-Sep-16
Face Value : 10
Lot Size : 73 Per Equity Share
About the Company
Incorporated in 2006, Bharat Road Network Limited, a subsidiary of SREI Infrastructure Finance Ltd is engaged in the business of development, implementation, operation, and maintenance of roads/highways projects. The company is involved in the development, operation and maintenance of national and state highways in several states in India with projects in states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha through partnerships with experienced EPC players in the local space where the project is located. It offers a range of project management services, including design, engineering, and quality control, as well as engineering, processing, and construction management; and project advisory services, such as project management consultancy, project conceptualization, commissioning, and operation and management of the projects, as well as undertakes debt syndication, refinancing, and financial restructuring of its projects.
Considering the P/Bv valuation on the upper end of the price band of Rs. 205, the stock is priced at P/B ratio of 1.88x on the pre issue book value of Rs.109 and on the post issue book value of Rs. 142.51 the P/B comes out to 1.44x.
On the lower end of the price band of Rs.195, the stock is priced at P/B ratio of 1.79x on the pre issue book value of Rs. 109 and on the post issue book value of Rs. 142.51 , the P/B comes out to 1.37x.
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BRNL is a road BOT company in India, focused on development, implementation, operation and maintenance of roads/highways projects. Even though government has focused on infrastructure spending and this may open up opportunities in the BOT segment, but due to higher competitive intensity the company may not get the opportunity in orders. Moreover, the company has been reporting losses in the last 5 years. One may give this IPO a miss.