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G R Infraprojects IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Jul 6, 2021
  • 2 min read


IPO Details:



Price Band: 828-837

Cutoff Price: 837


About Company:


GR 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 having recently diversified into projects in the railway sector. Their principal business operations are broadly divided into three categories:

  1. Civil construction activities, under which we provide EPC services;

  2. Development of roads, highways on a Build Operate Transfer (“BOT”) basis, including under annuity and Hybrid Annuity Model (“HAM”);

  3. Manufacturing activities, under which we process bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.


Competitive Strengths:

  1. Focused EPC player with road projects focus;

  2. Established track record of timely execution;

  3. In-house integrated model;

  4. Strong financial performance and credit rating;

  5. Experienced Promoters with strong management team.


Strategies:

  1. Continued focus on road EPC business;

  2. Pursue other segments within the EPC space;

  3. Leverage core competencies with enhanced in-house integration;

  4. Strengthen internal systems and continue to focus on technology and operational efficiency;

  5. Financial discipline coupled with strategy to monetise assets.


Financial Performance:



Company revenue, net profit and EPS are positive and increasing year on year. With current EPS of 98.3 for financial year 2021, PE of the GR Infra is 8.5 which is very less. Companies revenues has grown by CAGR of 22% and Net Profit has grown by CAGR of 15% in last two year. Company financial seems to be decent compared to its listed competitors.


Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale

Competitors Comparison:

GR Infra IPO seems to be undervalued based on the P/E ratio and price to book value ratio.


Grey Market Premium:


Our view: GMP of the stock is decent and also the stock is fairly valued. We can expect this IPO to list at premium and hence I would be applying for this IPO.

Do visit this blog and the link after 6pm to get updated details on grey market premium and subscription details.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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