On 19 July, Monday, GR Infraprojects shares experienced a strong demand in the secondary market listing a 103 per cent premium.
The company’s outcome stood far better than the analysts expectations considering its healthy orderbook and government’s focus on infrastructure.
On the first day of trade, the stock commenced at Rs 1,700, higher by Rs 863 against its issue price of Rs 837 on the BSE.
At around 10:02 hours IST, the company’s stock was trading at Rs 1,605.25, up by Rs 768.25 or nearly 91.79 per cent along with a volume of 2.68 lakh equity shares.
GR Infraprojects has developed itself in the past 2 decades. At present, it emerged as an established EPC player, especially in road construction space. By the end of March 2021, it has a robust order book of nearly Rs 19,000 crore with book to bill ratio of 2.6x to its FY21 revenue. “This gives a good revenue visibility for the coming years”, commented Yes Securities.
As of March 2021, the company has one operational build-operate-transfer (BOT)(annuity) project coupled with 14 road project under the hybrid annuity mode (HAM). Among these 14 projects, 5 are currently operational, 4 are under construction and the remaining 5 projects constructions are likely to commence in the coming months.
Furthermore, the company also bid for projects in Metros and High speed rails. The company looks forward to diversify by winning projects in this segments.
GR Infraprojects equipment base consist of more than 7000 construction equipment and vehicles, till March 2021. On the other hand, its inhouse integrated model reduces dependence on a third party suppliers regarding key raw materials, construction equipment, and several other products and services required in the development and construction of its projects.
The brokerages as cited by ‘Moneycontrol’ stated, “The company also has 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.”
According to reports, the road engineering, procurement and construction (EPC) obtained around Rs 963 crore through its IPO, which was subscribed nearly by 102.58 times. The IPO was carried out between July 7-9. The company’s IPO witnessed the seventh highest subscription among the IPO’s the were introduced in the year 2021.
