G R Infraprojects

... NSE/BSE

IPO Size

`963.28 Cr

Price Band

`828-837 Per Share

Minimum Lot Size

17 Share

Face Value

`5 Per Share

Employee Discount

`42 Per Share

Retail Allocation

35%

Issue Open Date

07 July, 21

Issue Close Date

09 July, 21

Listing Date

19 July, 21

About the Company:

Incorporated in December 1995 and have gradually increased our execution capabilities in terms of the size of projects that we have bid for and executed. GR Infraprojects Limited 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 has recently diversified into projects in the railway sector. The principal business operations of the company are broadly divided into three categories: (i) civil construction activities, under which we provide EPC services; (ii) development of roads, highways on a Build Operate Transfer (“BOT”) basis, including under annuity and Hybrid Annuity Model (“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.

 

Outstanding Litigation:

S.No. 1 - Company 2 - Directors 3 - Promoters
Entity Name By the Company Against the Company By the Subsidiaries Against the Subsidiaries By the Promoters Against the Promoters
Criminal cases 7 5 - - 1 3
Material civil cases 7 6 2 - - -
Taxation matters - 51 - 8 - -
Regulatory Procedings - 11 - - - -
Amt. (In Million Rs.) 2,081.16 1,581.99 1904.5 754.41 Non-Quantifiable Non-Quantifiable

 

Financial Statements:

Income Statement (In Millions) FY20 FY19 FY18
Gross Operating Income 64210.62 53231.10 33356.01
Cost of Employee & Inventory 47045.76 39261.69 26290.69
Other Expenses 820.43 741.64 422.8
EBITDA 16344.43 13227.77 6642.52
Depreciation 1883.46 1487.29 858.55
Interest  2944.76 1696.3 676.58
Profit Before Tax 11516.21 10044.18 5107.39
 Tax 3523.95 2899.09 980.49
Profit After Tax 7992.26 7145.09 4126.9

Recommendation

As per CA Ajay Chouhan, SEBI Registered Research Analyst, recommendation is to ‘Subscribe’ for ‘Long Term’ and ‘Listing Gains’ too. On the financial front, GR Infraprojects have been able to increase their revenues by 22%. Company has been able to generate 22% EBITDA margins due to higher efficiency. Net Debtor days period of the company is 50 days much lower than the listed peers which signals that the company has sufficient working capital to incur operations effectively due to quick recovery. Return on Equity is 27.8% while Return on Capital Employed is 32.2%, which is highest recording among the listed peers. The company has a strong order book of 222,540 million out of which 98.2% belongs to road construction that shows its competence in road construction expertise. Company has a debt of 3,543 crores on its balance sheet while its Interest Coverage Ratio of 9.1 puts the company in a strong case. Considering the upper price band and FY20 Earning Per Share (EPS), the company is demanding a P/E multiple of 10.15x, much in-line with the listed peers.

Promoter of the Company

The promoters of the company are Vinod Kumar Agarwal, Ajendra Kumar Agarwal, Purshottam Agarwal, and Lokesh Builders Private Limited.

Peer Comparison

In the listed space, the company will face competition from Ashoka Buildcon, Dilip Buildcon, Hindustan Construction Company, KNR Constructions, PNC Infra and Sadbhav Engineering.

Objectives of the Issue

Offer for Sale

The issue size of 963.28 crores is a complete Offer for Sale comprises sale of up to 11.5 million shares by India Business Excellence Fund and Pradeep Kumar Aggarwal.

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