GR Infraprojects IPO: Nine things you must know before investing

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Road engineering, procurement and construction (EPC) company GR Infraprojects’ Rs 963.28 crore initial public offering (IPO) is set to hit the streets next week on July 07. Here are nine things that you should know about the IPO.

Open and close date

The three-day issue will open on July 07 and close on July 09.

Issue size

The infrastructure developer aims to raise Rs 963.28 crore through the public listing of shares. The issue is a complete offer for sale by promoter and promoter group, and investors. Promoters, Lokesh Builders will sell 11,42,400 equity shares through an offer for sale, Jasamrit Premises 1.27 lakh equity shares, Jasamrit Fashions 80,000 equity shares, Jasamrit Creations 56,000 equity shares, and Jasamrit Construction 44,000 equity shares.

Among others, India Business Excellence Fund I will offload 64,14,029 equity shares and India Business Excellence Fund 31,59,149 equity shares, which are investors in the company. Other selling shareholder is Pradeep Kumar Agarwal will also sell 4,86,126 equity shares through an offer for sale.

Price band

The price band for GR Infraprojects IPO has been fixed at Rs 828-837 per share of the face value of Rs 5.

The offer includes a reservation of up to 2,25,000 equity shares for the company’s employees, who will get shares at a discount of Rs 42 per share to the final price.

Lot size

Investors can bid for a minimum of 17 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,229 at the higher end of the price band. A retail investor can at max apply for 14 lots or 238 shares for 1,99,206.

Objective of issue

Since the entire issue is an offer for sale none of the proceeds would be coming to the company’s balance sheet.

About the company

GR Infraprojects is an integrated road engineering, procurement, and construction company with experience in designing and construction activities and road/highway projects. It mainly undertakes civil construction projects under the EPC and BOT (Build Operate Transfer) basis in the road sector but also diversified into manufacturing activities of thermoplastic road-making paints, electric poles, road signages, and fabricating metal crash barriers. Till April 2021, it has completed 100+ road construction projects successfully, and currently, 4 BOT projects are under construction.

On the financial front, the company reported total revenue of Rs 7906.94 crore in FY21 compared to Rs 5,325.53 crore in FY19. Whereas its profit after tax grew to Rs 953.22 crore versus Rs 716.63 crore during the same period.

What’s in it for retail investors

Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional bidders.

Book Running Lead Managers and Registrar to the IPO

The book running lead managers to the issue are HDFC Bank, ICICI Securities, Kotak Mahindra Capital Company, Motilal Oswal Investment Advisors, SBI Capital Markets, and Equirus Capital. The registrar to the issue is KFintech Private Limited.

Issue timeline

The issue is likely to finalize the basis of allotment by July 14, and the initialization of refunds will take place by July 15. While the credit of equity shares to depository accounts of the allottee will be done on July 16. The infra developer is expected to make its stock market debut on July 19, 2021.