The HG Infra (HGIEL) IPO opens for subscription today. The firm, a road infrastructure construction company, mainly involved into the execution of EPC contracts. In the last five years, it has completed 13 projects in the roads & highways sector aggregating to a total contract value of Rs. 16,749mn. As on 30th Nov. 2017, the company says it had 21 ongoing projects in the roads and highways sector, totalling  96.7% of the total order book of over Rs.3,700 crore.

While Choice Analysts and others have recommended subscribing to the IPO, a couple of concerns include the high concentration of the order book in terms of both sector (roads and highways) as well as geo - Rajasthan and Maharashtra. The company is counting on the rise in government infrastructure investment for upcoming growth. 

The company says it also has four civil construction projects and two water supply projects under execution. EBITDA margin expanded by 60bps over FY14-17 to 11.4% in FY17.