HG Infra Engineering received Sebi's approval to launch initial public offerings, as per the latest update with markets regulator, reported PTI. HG Infra Engineering received "observations" from Securities and Exchange Board of India (Sebi) on December 13, which is necessary for any company to launch public offers. HG Infra Engineering's IPO comprises fresh issue of equity shares worth Rs 300 crore besides an offer of sale 60 lakh scrips by the existing shareholders.
Funds raised through the fresh issue will be used for purchasing capital equipment, repayment of loan and for other general corporate purposes. According to merchant banking sources, the public issue is expected to fetch Rs 500 crore. SBI Capital Markets and HDFC BankBSE -0.42 % are the merchant banker to the issue.