Sadbhav Engineering Hits 52-Week High After Unit Files for IPO

Sadbhav Engineering shares on Thursday gained over 7 per cent to hit a fresh 52-week high of Rs 284.9. The surge comes after its shares gained 7 per cent yesterday, following its subsidiary Sadbhav Infrastructure Projects filing a draft red herring prospectus with the market regulator Securities and Exchange Board of India.

The public issue will consist of a fresh issue of equity shares of Rs 10 aggregating up to Rs 600 crore and an offer for sale of up to 16.18 million shares by Xander Investment Holding XVII and Norwest Venture Partners VII-A-Mauritius.

Nitin Patel, executive director, at Sadbhav Engineering told NDTV that this will unlock the value for the shareholders of Sadbhav Engineering as it holds nearly 78 per cent stake in Sadbhav Infrastructure.

In last eight years Sadbhav Engineering has made investment in various Special Purpose Vehicle (SPVs) of Sadbhav Infrastructure which are now generating revenue, said Mr patel.

Sadbhav Infrastructure currently has a total of 10 projects as of now and three more projects are under acquisition, added Mr Patel.

Shares in Sadbhav Engineering ended 1.85 per cent higher at Rs 269.45 apiece, outperforming the broader Nifty which closed 0.3 per cent higher on Thursday.