Bharat Road Network files draft prospectus with Sebi for an IPO

Srei Infrastructure Finance Limited's road arm Bharat Road Network Limited (BRNL) has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). 

In a BSE filing on Friday, Srei said, "The company's Bharat Road Network has file its draft red herring prospectus (DRHP) dated February 16, 2017, with Sebi on February 17, 2017 in order to undertake initial public offering (IPO)."

As per the draft, the IPO will comprise a fresh issue of 2.93 crore shares. This would be a stake dilution of nearly 35% stake in BRNL.

Currently, Srei holds 30.43% of equity share capital in Bharat Road Network. 

Financial advisors for this IPO are - Inga Capital, Investec Capital Services, Srei Capital Markets. 

In the month of June 2016, Hemant Kanoria, Chairman and Managing Director of SREI Infrastructure in a Hindu Businessline report said, “We are in parleys with various merchant bankers for the valuation and expect to complete either strategic stake-sale or come out with an IPO of the road holding special purpose vehicle this fiscal.”

During that time, Srei stated that it plans to raise up to Rs 1200 crore either via divestment of stake in road assets or come out with IPO of the road holding company. 

Recently, BSE Limited entered the IPO market with its issue size of Rs 1500 crore. 

Last year, 28 companies with issue size of Rs 21,250.23 crore have entered the primary market via this route.