GR InfraProjects IPO is getting launched for subscription today on Wednesday 07, July 2021, and will be available for subscription till Friday, July 09, 2021.
The company is looking to raise Rs.962.33 crore through public issue which will be entirely an offer-for-sale (OFS) of up to 1.15 crore equity shares by existing promoters and shareholders.
The equity shares of GR InfraProjects Ltd. are proposed to be listed on both BSE and NSE.
The GR Infra IPO issue will be sold in the price band of Rs 828-837 per share and the minimum lot quantity is 17 shares and in multiples thereof translating to a minimum investment of Rs 14,076 at upper end.
The latest Grey market premium price (GMP) for GR InfraProjects IPO’s were seen up by more than 43.7% and were trading around Rs.364 as of today, This means people are expecting it to open on listing day to be at least at Rs.1200 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the GR Infraprojects Ltd (GRIL) IPO let us talk about in brief about the company and its financials and other details step by step.
About GR Infraprojects Ltd (GRIL):
GR Infraprojects Limited was incorporated in Dec 1995. G R Infra is an integrated road engineering, procurement and construction (EPC) company with experience in design and construction of various road/highway projects across 15 states in India and has recently diversified into projects in the Railway sector.
The company’s principal business operations are broadly divided into three categories:
• Civil construction activities, under which it provides EPC services
• Development of roads and highways on a Build Operate Transfer (BOT) basis, including under Annuity and Hybrid Annuity Model (HAM)
• Manufacturing activities, under which it processes bitumen; manufactures thermoplastic road-marking paint, electric poles and road signage; and fabricates and galvanizes metal crash barriers.
Its principal business of Civil Construction comprises EPC and BOT projects in the Road sector. It has, since 2006, executed over 100 road construction projects.
It also has experience in constructing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges.
Its in-house integrated model and efficient project execution capabilities has enabled it to execute projects in a timely manner, and in certain cases before the stipulated timelines, while maintaining requisite quality standards.
In March 2010, it commissioned a wind-energy-based power plant at Jaisalmer, Rajasthan, with an installed capacity of 1.25 MW under the Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources, 2004.
It had also commenced the construction of a group housing project comprising row houses and other residential units in Udaipur, Rajasthan.
Financials Of GR Infraprojects Ltd (GRIL):
The revenue from operations increased from 5282.6 crore in FY19 to 7844.1 crore in FY21 at a CAGR of 21.9% while profit for the year increased from 716.6 crore in FY19 to 953.2 crore in FY21 at a CAGR of 15.3%.
GRIL’s credit rating and relationship with its lenders enables them to raise financing in a timely manner, which helps in maintaining the requisite leverage from the operations.
As of March 31, 2021, the company’s total borrowings were 4,495.0 crore. The company’s long term rating from Crisil is AA/Stable.
Also the company has a healthy order book which gives strong revenue visibility going forward. As of March 31, 2021, GRIL’s order book is at 19,025.8 crore and comprised 16 EPC projects, 10 HAM projects and three other projects
The company strives to maintain a robust financial position and low debt levels along with emphasis on a strong balance sheet enable the company to pursue future opportunities for growth.
At 837 (upper band), the stock is priced at 8.5x FY21 consolidated EPS. Which is at discount to the peer average. Thus the issue seems to be attractively priced.
Looking at the government’s focus on enhancing infrastructure assets in the country, primarily the road construction space will continue to attract private capital.
GR Infra with its efficient operations is well placed to benefit from the growth in the sector. Due to strong fundamentals in terms of its strong execution track record, healthy balance sheet and strong cash flow generating profile one can subscribe it for long term.
GR Infraprojects Ltd (GRIL) Peers Comparison:
KNR Construction, PNC Infratech, HG Infra, Dilip Buildcon, Ashoka Buildcon, IRB Infra and Sadbhav Engg as Gr Infra listed peers.
They are currently trading at a P/E of around 26.59, 20.45, 12.53, 26.28, 7.62 and 00 (as of July 01, 2021). Among the Key EPC Players, the company saw the fastest growth in operating income over a period of 5-years from fiscal 2015 to 2020 at a CAGR of 47%.
GR Infraprojects Ltd (GRIL) IPO Details:
GR Infraprojects will sell shares at Rs 828-837 per share in its 3 day initial public offering starting on July 07 to July 09, 2021.
The shares of GR Infraprojects IPO will be allotted on 14 July 2021, The tentative date of GR Infra IPO listing is around July 19, 2021.
GR Infraprojects Ltd (GRIL) Objects of the Offer:
To achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the offer for sale
GR Infraprojects Ltd (GRIL) Issue break-up:
• QIB – 50% of the Net offer – ₹ 472.22 crores
• NIB – 15% of the Net offer – ₹ 141.67 crores
• RET – 35% of the Net offer – ₹ 330.56 crores
Shareholding Pattern (%) of GR Infraprojects Ltd (GRIL):
Promoters – 46.89%
Promoter Group – 41.15%
Public – 11.96%
Promoters – 45.71%
Promoter Group – 40.83%
Public – 13.46%
Frequently Asked Question (FAQ):
1.What Is The Symbol For GR Infraprojects Ltd (GRIL) ?
Ans: The Symbol is GRINFRA
2.When GR Infraprojects IPO Coming?
Ans: The Issue Period for GR Infraprojects IPO is 07-July-2021 to 09-July-2021.
3. Post Modification Period For GR Infraprojects IPO?
Ans: The Post issue Modification Period for IPO is 12-July-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For GR Infraprojects IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 12-July-2021 (upto 12:00 PM).
5. What Is The Issue Type For GR Infraprojects IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For GR Infraprojects IPO?
Ans: The Price (Band) Range for GR Infraprojects is Rs.828 to Rs.837 per equity share.
7. What Is The Lot Size For GR Infraprojects IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for GRInfra IPO is of 17 Equity Shares and in multiples thereof 17 Equity Shares.
8. Who Are The Book Running Lead Managers For GR Infraprojects IPO?
Ans: The Book Running Lead Managers are, HDFC Bank Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited, Equirus Capital Private Limited
9. What Is The Face Value For GR Infraprojects IPO?
Ans: The Face Value is of Rs.5 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For GR Infraprojects IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Maximum Subscription Amount for Eligible Employees is Rs. 5,00,000
Employee reservation: 2,25,000 equity shares
Employee discount: ₹ 42 per equity share
The Maximum Bid Quantity for QIB Investors is 78,98,591 equity shares in multiple of 17 Equity Shares
The Maximum Bid Quantity for NIB Investors is 56,41,841 equity shares in multiple of 17 Equity Shares
The Name of the Registrar is Kfin Technologies Private Limited
The Contact person name number and Email id is Mr. M Murali Krishna, +91 40 6716 2222, email@example.com
The Address of the Registrar is Selenium Tower B, Plot 31 & 32, Gachibowli,Financial District, Nanakramguda Serilingampally,Hyderabad 500 032,Telangana, India
Where To Check GR Infraprojects IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
In the last three fiscals, all its projects were completed prior to or by the scheduled timelines. In addition, in FY21, FY20 and FY19, of total projects completed, 50%, 50% and 80%, respectively, of such projects were completed before the scheduled completion date.
GRIL has over 25 years of experience in executing EPC projects that have been in the road sector comprising construction and development of state and national highways, bridges, culverts, flyovers, airport runways, tunnels
and rail over-bridges.
Since 2006, the company has executed more than 100 road construction projects and accordingly established its credentials as an EPC player capable of executing a range of construction projects that involve varying degrees of complexity.
Let us checkout some of the strengths and risk factors for Gr Infraprojects Limited.
Some of the qualitative factors and strengths of GR Infraprojects:
- Focused EPC player with road projects focus
- Established track record of timely execution
- Strong financial performance, credit rating
- In-house integrated model
- Pursue other segments within EPC space
- Leverage core competencies with higher in-house integration
- Strengthen internal systems, continue to focus on technology and operational efficiency
- Financial discipline coupled with strategy to monetize assets
Some of the Risk Factor for GR Infraprojects:
- Business highly dependent on road projects
- Delays in completion of projects may lead to termination of concession and other EPC agreements or cost overruns
- Effect of the Covid-19 pandemic is highly uncertain and cannot be predicted
Therefore, it is always advisable to go through GR Infraprojects IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.