GR Infraprojects IPO Opens For Bidding Today; It It Worth Investing?

Edited by Peter Noronha

07 Jul 2021, 10:57 AM IST

Ahead of IPO, GR Infraprojects has already raised Rs 283 crore from anchor investors

GR Infraprojects' Rs 963 crore initial public offering (IPO) opens for bidding today i.e. July 7, 2021. The Udaipur-based company's public issue will entirely be an offer-for-sale (OFS) of up to 1.15 crore shares by the promoter and shareholders. The IPO will remain open for three days, till July 9. The company has fixed the price band at Rs 828 to Rs 837 per share. The shares are likely to be listed on the stock exchanges on July 19.

The OFS will include sale of 11,42,400 shares by Lokesh Builders, 1,27,000 shares by Jasamrit Premises and 80,000 shares by Jasamrit Fashions. As many as 2.25 lakh shares will be reserved for eligible employees.

Retail investors can apply for a minimum on lot of 17 shares and in multiples thereof, extending up to 14 lots (238 shares).

Ahead of IPO, GR Infraprojects raised Rs 283 crore from anchor investors, including Smallcap World Fund Inc, Abu Dhabi Investment Authority, BlackRock Global Funds, The Master Trust Bank of Japan and Fidelity.

GR Infraprojects is in the business of civil construction, manufacturing, and development of roads and highways on a build-operate-transfer (BOT) basis. Its peers include KNR, PNC and IRB Infra.

Among other IPOs, Clean Science and Technology IPO has also opened for subscription today i.e. July 7 and akin to GR Infraprojectsl, Clean Science is also an offer for sale.

Meanwhile, Anandrathi said in an investor note:

G R Infraprojects Limited is poised to deliver healthy growth on the topline as well as the bottom-line front on the back of its strong order book (FY2021 Order Book/Sales ratio stands at 2.4x). On the valuation front, at the higher-end of the issue price band, the company is available at a discount to its other listed road focused EPC peers on P/E basis (on FY2021 EPS) and EV / EBITDA of 6.0x its FY21 EBITDA.

Considering the government's focus on enhancing infrastructure assets in the country, the road construction space will continue to attract investors. GR Infra with its efficient operations is well placed to benefit from the growth in the sector; we advise investors to SUBSCRIBE to the issue.