HG Infra has tepid listing

HG Infra made a tepid debut today. The stock got listed on the BSE at Rs.270, the same as issue price and is now quoting below the IPO AT Rs.268 levels.

The issue was subscribed five times, raising Rs.462 crore.

In our New Issue Analysis, we had said, “Historic growth, good order book offering revenue visibility and Govt’s healthy push to the road sector, all bode well for the stock. However, high debt and geographic concentration in just 2 states coupled with current sentiments of secondary markets, pricing is not viewed to be very attractive. Hence, advice would be to either wait for 12-15% lower levels post listing or evaluate financial performance over the next few quarters before taking a call on the stock.”