GR Infraprojects IPO Review 2021: Looking into the record number of IPOs hitting this month, GR Infraprojects IPO opens on 7th July and closes on 9th July 2021. The company is involved in Road engineering, procurement, and construction (EPC) across 15 states in India.
In this article, we cover the GR Infraprojects IPO review and look into important IPO information to find out the possible prospects of the company.
Table of Contents
GR Infraprojects IPO Review – About the Company
Founded in 1995, GR Infraprojects is an integrated road Engineering, Procurement, and Construction (EPC) company. They undertake civil construction projects like the development of roads, highways on a Build Operate Transfer (BOT) basis, including under annuity and Hybrid Annuity Model (HAM).
Its involvement in developing roads also includes manufacturing of thermoplastic road-marking paints, electric poles, road signages, and fabricating metal crash barriers.
The company took on its first project in 1997 after a successful bid of Rs. 2.65 Cr. for the Public Works Department, Rajasthan. Since 2006 the company has executed over 100 road construction projects.
They have recently been awarded the Vadodara Mumbai Expressway project in the state of Maharashtra on HAM basis, to the GR Infra IPO in 2020 by the NHAI. GR Infra secured this with a bid of ₹ 2747 Crores.
As of March 31st, the company’s order book has projects worth a total of Rs 19,025.80 crore. These include 16 EPC projects, 10 HAM projects.
These projects are spread across the states of Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Chattisgarh, Rajasthan, Andhra Pradesh, Bihar, Manipur, Odisha, and Himachal Pradesh. In addition to this, the company has also diversified into the railway sector.
Apart from the projects mentioned above they have secured railway projects in Andhra Pradesh and Madhya Pradesh and an optical fiber project spread across the states of Bihar, Odisha, West Bengal, Andaman, and the Nicobar Islands, Jharkhand, and Sikkim.
GR Infra also commissioned a wind energy-based power plant at Jaisalmer, Rajasthan in 2010. The plant has an installed capacity of 1.25 MW and was taken on under the ‘Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources – 2004’.
The company also shows healthy financials. Their total income and profit have grown at a CAGR of 21.85% and 15.33% between FY 2019 to FY 2021.
As seen above the prospects of the company show various strengths which include a strong financial performance with a good order book signifying revenues in the coming future too.
In addition to this, the company also has an established track record of timely execution and good credit ratings.
GR Infraprojects’ Competitors
Following are some of its domestic competitors.
GR Infraprojects IPO Review – Grey Market Premium
The shares of GR Infra were trading at a 42% premium in the grey market a day before the IPO. The shares traded at a price of Rs. 1,192 giving them a premium of Rs. 343-348 over their issue price band of Rs 828-837 per share.
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Key IPO Information of GR Infraprojects
The promoters of the company include Vinod Kumar Agarwal, Ajendra Kumar Agarwal, Purshottam Agarwal, and Lokesh Builders Private Ltd. HDFC Bank, ICICI Securities, Kotak Mahindra Capital Company, Motilal Oswal Investment Advisors, SBI Capital Markets, and Equirus Capital have been appointed as the lead managers to the issue. Karvy Computershare Pvt Ltd has been appointed as the registrar to the issue.
| Particular | Details |
|---|---|
| IPO Size | ₹963.28 Cr |
| Fresh Issue | --- |
| Offer For Sale(OFS) | ₹963.28 Cr |
| Opening Date | Jul 7, 2021 |
| Closing Date | Jul 9, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹828 to ₹837 per equity share |
| Lot Size | 17 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 14 |
| Listing Date | Jul 19, 2021 |
GR Infraprojects IPO Review –Purpose of the IPO
GR Infra has decided to opt for an IPO for the following purpose
- Offer for Sale: The main objective of the IPO is to enable the exit of the company’s existing shareholders.
- To achieve the share listing benefits on the BSE and NSE.
In Closing
The IPO opens on 7th July and closes on 9th July 2021. Various analysts have recommended subscribing to the IPO. This is because they believe the shares are being offered for a cheap price.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of GR Infraprojects.
That’s all for this post. Do let us know what you think of the GR Infraprojects IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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