GR Infraprojects IPO

On July 7, the first day of bidding, the public offer of road EPC company GR Infraprojects has been subscribed to 1.09 times. Investors have submitted bids for 88.34 lakh equity shares, compared to the 81.23 lakh shares on offer.

Retail investors are leading the charge, bidding 1.81 times their reserved amount, according to subscription data available on exchanges.

Non-institutional investors’ portion has been subscribed to at 98 percent, while employees’ piece has been subscribed to at 5%, while qualified institutional buyers have placed bids for 12,189 equity shares against their reserved portion of 22.56 lakh equity shares.

GR Infraprojects intends to raise Rs 963.3 crore through a public offering that will include an all-cash offer for current shareholders. Which includes Rs 283 crore previously raised from anchor investors at the higher end of the Rs 828-837 per share pricing band.

On July 6, road contractor GR Infraprojects raised Rs 283.33 crore from 47 anchor investors ahead of its initial public offering.

The business informed exchanges that as part of the anchor investors’ (AIs) participation in GR Infraprojects’ public offering, a total of 33,85,110 equity shares had been subscribed at a price of Rs 837 per equity share, the upper end of the price band.

Among the worldwide investors who participated in the anchor book offer were Smallcap World Fund Inc, Abu Dhabi Investment Authority, BlackRock Global Funds, The Master Trust Bank of Japan, and Fidelity.

According to the company’s statement filed with the markets, 19,18,298 equity shares (or 56.67 percent of the total anchor investors allocation) have been awarded to 13 mutual funds that applied through a total of 38 schemes.

Through the anchor book, domestic investors such as HDFC Trustee, Aditya Birla Sun Life, UTI Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, HDFC Life Insurance, Sundaram Mutual Fund, and Motilal Oswal Mutual Fund invested in GR Infraprojects.

The road engineering, procurement, and construction (EPC) company intends to collect Rs 962 crore through a public offering on July 7-9, at a price range of Rs 828-837 per equity share. GR Infraprojects is an EPC business with experience in the design and construction of different road and highway projects throughout 15 Indian states and has lately expanded into the railway industry.

Its primary business activities are essentially classified into three categories: civil construction; road and highway development on a build-operate-transfer (BOT) basis; and manufacturing.

Anand Rathi feels GR Infraprojects is well-positioned to produce healthy top-line and bottom-line growth as a result of its robust order book.

“On the valuation front, the company is accessible at a discount to its rivals at the upper end of the issue price band. In FY2021, the company posted a return on equity (RoE) of 24.0 percent, one of the highest in the industry “The brokerage stated.

GR Infraprojects Limited (GRIL) is a full-service road engineering, procurement, and construction (EPC) firm. The company has experience designing and constructing a variety of road/highway projects across 15 Indian states and has lately expanded into the railway sector.

As of March 2021, the business had a backlog of Rs 19,025.8 crore, which included 16 EPC contracts and ten HAM projects.

Image: https://unsplash.com/@karsten_wuerth

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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