Image Source: MoneyControl
HG Infra Engineering Ltd has received board approval to raise up to ₹4 billion through the issuance of non-convertible debentures (NCDs) on a private placement basis. The move is aimed at strengthening the company’s financial flexibility as it gears up for large-scale infrastructure projects across highways, railways, and defense logistics.
Key Highlights:
-
The board meeting held on July 14, 2025, approved the fundraising plan under Regulation 29 of SEBI’s Listing Obligations and Disclosure Requirements.
-
The NCDs will be issued in tranches, with tenure and coupon rates determined based on prevailing market conditions and investor appetite.
-
Funds will be used to refinance existing debt, support working capital, and meet capex requirements for ongoing and upcoming projects.
Strategic Context:
-
HG Infra has recently emerged as the lowest bidder for a ₹1.18 billion naval dockyard project and secured multiple orders from PFC Consulting and Gujarat Urja Vikas Nigam.
-
The company’s order book exceeds ₹12,000 crore, with strong visibility in EPC and HAM segments.
-
The debenture issuance is expected to optimize the capital structure and reduce interest burden, improving net margins over the next 6–8 quarters.
Market Reaction and Outlook:
-
Shares of HG Infra Engineering traded at ₹1,114.40, up 4.72 percent post-announcement, reflecting investor confidence in the company’s growth trajectory.
-
Analysts maintain a bullish stance, citing robust execution, low leverage, and expanding presence in defense and renewable infrastructure.
Sources: Economic Times, Trendlyne, Moneycontrol, HG Infra BSE Filings, BlinkX, Business Standard (July 2025)
Advertisement
Advertisement