30-Aug-2021
GR Infraprojects IPO
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING
Should GR Infraprojects IPO be held for the long term or for listing gain?
1. Company Details
Primary business of the Company:
We are an integrated road 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. Our principal business operations are broadly divided into three categories: (i) civil construction activities, under which we provide EPC services;
(ii) development of roads, highways on a BOT basis, including under annuity and HAM; and
(iii) manufacturing activities, under which we process bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.
Industry in which Company operates:
The infrastructure sector encompasses roads, power, railways, urban infrastructure, and irrigation among others. The government introduced significant policy reforms to augment foreign direct investment (FDI) inflows to further boost investment and enhance infrastructure in the country. The roads sector accounted for 49% of total investments in the infrastructure industry over fiscal year 2015-19. Currently, 12-15% of the investment in state roads is through public and private partnerships. CRISIL Research expects private construction investments in national highways to increase 2x to ₹ 1.5 trillion over fiscal 2021-25 compared with the previous five years. (Source: CRISIL Report)
2. SWOT Analysis:
1. Among the EPC players mentioned above, G R Infraprojects saw the fastest growth in operating income over
a period of 5-years from fiscal 2015 to 2020 at a CAGR of 47%. It is followed by Dilip Buildcon with 28%
2. CAGR and PNC Infra with 25% CAGR during the same period.
3. G R Infraprojects Ltd reported the second-highest OPBDIT of Rs 12,442.5 million among the EPC players
3. Risk Factors:
1. Company has not undertaken a split or consolidation of the Equity Shares in the one year preceding the date of this Draft Red Herring Prospectus.
4. Company Financials:
4. Objects of the IPO:
1. Share Listing gain on BSE and NSE
2. To offer for sale of 11,508,704 Equity shares, the total amount of face value of Rs 5 each (“equity shares”)
5. Name of Promoters
As on the date of this Red Herring Prospectus, our Promoters are Vinod Kumar Agarwal, Ajendra Kumar Agarwal,
Purshottam Agarwal and Lokesh Builders Private Limited.
6. G R Infraprojects IPO Details:
Should GR Infraprojects IPO be held for the long term or for listing gain?
1. Company Details
Primary business of the Company:
We are an integrated road 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. Our principal business operations are broadly divided into three categories: (i) civil construction activities, under which we provide EPC services;
(ii) development of roads, highways on a BOT basis, including under annuity and HAM; and
(iii) manufacturing activities, under which we process bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.
Industry in which Company operates:
The infrastructure sector encompasses roads, power, railways, urban infrastructure, and irrigation among others. The government introduced significant policy reforms to augment foreign direct investment (FDI) inflows to further boost investment and enhance infrastructure in the country. The roads sector accounted for 49% of total investments in the infrastructure industry over fiscal year 2015-19. Currently, 12-15% of the investment in state roads is through public and private partnerships. CRISIL Research expects private construction investments in national highways to increase 2x to ₹ 1.5 trillion over fiscal 2021-25 compared with the previous five years. (Source: CRISIL Report)
2. SWOT Analysis:
1. Among the EPC players mentioned above, G R Infraprojects saw the fastest growth in operating income over
a period of 5-years from fiscal 2015 to 2020 at a CAGR of 47%. It is followed by Dilip Buildcon with 28%
2. CAGR and PNC Infra with 25% CAGR during the same period.
3. G R Infraprojects Ltd reported the second-highest OPBDIT of Rs 12,442.5 million among the EPC players
3. Risk Factors:
1. Company has not undertaken a split or consolidation of the Equity Shares in the one year preceding the date of this Draft Red Herring Prospectus.
4. Company Financials:
| Particulars | As at and for the Fiscal ended | (As at and for the Nine months ended Dec) | ||
| Equity Share capital | March 31, 2018 | March 31, 2019 | March 31, 2020 | 31, 2020 |
| Net worth (1) | 484.81 | 484.81 | 484.81 | 484.81 |
| Revenue from operations | 15,149.85 | 22,279.97 | 30,238.62 | 37,250.59 |
| Profit for the period / year | 32,954.57 | 52,825.84 | 63,726.99 | 51,081.69 |
| Earnings per share (basic) | 4,126.90 | 7,145.09 | 7,992.26 | 7,020.33 |
| Earnings per share (diluted) | 42.57 | 73.69 | 82.43 | 72.40* |
| Net asset value per Equity Share (2) | 42.57 | 73.69 | 82.43 | 72.40* |
| Total borrowings | 156.24 | 229.78 | 311.86 | 384.18 |
4. Objects of the IPO:
1. Share Listing gain on BSE and NSE
2. To offer for sale of 11,508,704 Equity shares, the total amount of face value of Rs 5 each (“equity shares”)
5. Name of Promoters
As on the date of this Red Herring Prospectus, our Promoters are Vinod Kumar Agarwal, Ajendra Kumar Agarwal,
Purshottam Agarwal and Lokesh Builders Private Limited.
6. G R Infraprojects IPO Details: