Sadbhav Infra Project raises Rs 210 crore from anchor investors

Shares allotted to anchor investors at the top end of the price band for the IPO

Sadbhav Infrastructure Project (SIPL) has raised Rs 210 crore by selling 2.03 crore shares to a total of seven anchor investors ahead of the company's initial public offer (IPO). The shares will be allotted to the anchor investors at Rs 103 per share, the top end of the Rs 100 to Rs 103 per share price band for the IPO.

Among anchor investors, Nomura India Investment Fund Mother Fund will be allocated a total of 48.54 lakh shares and Morgan Stanley Mauritius Company will be allocated a total of 19.41 lakh shares. Amansa Holdings will be allocated a total of 24.27 lakh shares. HDFC Mutual Fund will be allocated a total of 48.54 lakh shares through two mutual fund schemes. Tata Mutual Fund will be allocated a total of 38.83 lakh shares through four mutual fund schemes. Tata AIG Life Insurance Co will be allocated a total of 9.7 lakh shares. SBI infrastructure Fund will be allocated a total of 14.56 lakh shares.

Bidding for the IPO of SIPL begins today, 31 August 2015. The issue closes on Wednesday, 2 September 2015. The IPO comprises of fresh issue of equity shares aggregating upto Rs 425 crore and an offer for sale of 64.71 lakh shares from two existing shareholders viz. Xander Investment Holding XVII and Nonvest Venture Partners VII-A-Mauritius. These two selling shareholders have put on block 32.35 lakh shares each. The price band for the IPO has been fixed at Rs 100 to Rs 103 per share.

Promoted by Sadbhav Engineering (SEL) and Vishnubhai Patel, SIPL was established to undertake roads, highways and related projects on a build-operate-transfer (BOT) basis for the Sadbhav group. The company's specialization is in development, operation and maintenance of highways, roads and related projects. The company intends to use about Rs 264.80 crore from proceeds of the IPO for repayment and pre-payment of loans availed from ICICI Bank and from SEL. An amount of Rs 82 crore will be deployed towards equity investment and for advancing of sub-ordinate debt to subsidiary Shreenathji-Udaipur Tollway for part-financing of the project. The remaining funds will be used for general corporate purpose.

On consolidated basis, SIPL reported net loss of Rs 301.56 crore in the year ended 31 March 2015 (FY 2015), higher than net loss of Rs 155.94 crore in the year ended 31 March 2014 (FY 2014). Total sales rose 34.82% to Rs 500.30 crore in FY 2015 over FY 2014.

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