GR INFRAPROJECTS LTD - Dharampur Camp - Unnamed Road

Roads and highways construction major GR Infraprojects had made a strong debut on the stock market on Monday after its initial public offering (IPO) received a strong response.

The market value of the company’s equity shares rose sharply as they listed at a premium of more than 100 per cent over the issue price. On the Bombay Stock Exchange (BSE), the company’s shares listed at Rs 1,700 against an issue price of Rs 837 — at a 103 per cent premium.

At around 10 am, the stock was trading at Rs 1,636 after hitting a post-listing high of Rs 1,725. On the National Stock Exchange, shares of the company had jumped to Rs 1,726.

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GR Infraprojects had received a thumbs up from analysts and investors before its public offering, given the company’s strong growth trajectory over the past couple of decades. The company raised Rs 963 crore via its public offering as the issue witnessed impressive demand from investors.

The portion of the public issue set aside for qualified institutional buyers (QIBs) was subscribed 168.58 times, 238.04 times by non-institutional investors, and retail investors placed bids for 12.57 times their reserved position.

ANALYSTS OPTIMISTIC

Analysts are optimistic about the company’s future outlook, given its expertise and involvement in many road and highway construction projects.

It may be noted that it had an order book of Rs 19,025.81 crore as of March 31, 2021. The order book comprises 16 engineering, procurement and construction (EPC) projects, 10 hybrid annuity model (HAM) projects and three other projects.

The has experience as an iterated road EPC company and has worked on the construction of various roads and highways across several states in the country. The company has recently diversified into projects in the railway sector.

Brokerage firm Yes Securities believes that the company’s strong integrated business model will enable good growth in future. The brokerage also said earlier that GR Infraprojects has a very low debt with net debt to equity of 0.2x.

"Hence, the company is well placed to meet its funds requirement for growth with low debt and ready monetizable assets," said Yes Securities.

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