G R Infraprojects Limited IPO

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(i) G R Infraprojects Limited is an integrated road EPC company with experience in design and construction of various road/highway projects across 15 States in India and recently they have entered into Railway projects as well.

(ii) Business Vertical of the G R Infra IPO

a) Civil construction activities, under which we provide EPC services.
b) Development of roads, highways on a Build Operate Transfer (“BOT”) basis, including under annuity and Hybrid Annuity Model (“HAM”).
c) Manufacturing activities, under which they process bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.

(iii) The Company was incorporated in December 1995 and executed their first projects for the Public Works Department, Rajasthan in 1997 with a Bid Project Cost of ₹ 2.65 Cr, whereas the project recently awarded by NHAI, i.e. Vadodara Mumbai Expressway project in the state of Maharashtra on HAM basis, to the GR Infra IPO in 2020 involves a Bid Project Cost of ₹ 2747 Crores.

(iv) Projects Detail

a) Since 2006, executed over 100 road construction projects.
b) Out of BOT projects, they have one operational road project which has been constructed and developed by us on a BOT.
c) 14 road projects which have been awarded to them under the HAM, out of which five projects are currently operational, four projects are under construction and construction is yet to commence on five of these projects.

EPC Project:

For the projects under EPC and construction services basis, the scope of the services typically includes design and engineering of the project, procurement of raw materials, project execution at site with overall project management up to the commissioning of these projects.

BOT Projects:

For BOT projects, in addition to construction and development of the project, we are also required to operate and manage the project during the concession period.

Revenue Contribution by Business Verticals

Order Book Size

As on 31.03.2021, they have an order book of ~19000 Crores.

a) The Order Book primarily comprised EPC and HAM projects in the road sector across the states of Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Chattisgarh, Rajasthan, Andhra Pradesh, Bihar, Manipur, Odisha and Himachal Pradesh.

b) It also includes railway projects in Andhra Pradesh and Madhya Pradesh and an optical fibre project spread across the states of Bihar, Odisha, West Bengal, Andaman and Nicobar Islands, Jharkhand and Sikkim.

Objects of the G R Infraprojects Limited IPO:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the offer for sale of up to 11,508,704 Equity Shares by the Selling Shareholders.

G R Infraprojects Limited IPO Details:

Open Date: Jul 07 2021
Close Date: Jul 09 2021
Total Shares: 11,50,87,04
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Building
Issue Size: 960 Cr.
Lot Size: 17 Shares
Issue Price: ₹ 825-837 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 19 2021

Promoters And Management:

(i) Vinod Kumar Agarwal is the managing director and one of the Promoters of our Company. He has completed his 12th standard and has over two decades of experience in the road construction industry. He has been a Director on our Board since incorporation of our Company and has been instrumental in the growth of our Company. He looks after the strategy and policy formulation for our Company and liaises with various departments of the Government and also overlooks processes in our Company which includes, bidding, tendering and planning. He is also the vice-president of the National Highways Builders Federation and was awarded the Excellence Award by the Hindustan Times for‘demonstrating excellence and deploying exponential strategies in their field by creating exceptional value for society’ in 2016. (ii) Ajendra Agarwal is an Executive Director and one of the Promoters of our Company. He holds a bachelor’s degree in civil engineering from Jodhpur University and has an experience of over two decades in the road construction industry. He is responsible for overseeing the overall functioning of our Company, especially the operational and technical aspects, of our Company. He heads the in-house design team and is actively involved in continuous value engineering using the latest specifications and methodologies. He is also the head of budgeting, planning and monitoring process which has leveraged the timely completion of our projects. He has been a Director on our Board since 2006.  

Financials of G R Infraprojects Limited IPO:

Particulars (in Cr.) Mar-21 Mar-20 Mar-19
Sales 7844 6372 5282
Cost of Material Consumed 111 106 113
Civil Construction Costs 5313 4151 3461
Change in Inventories -4.37 -2.30 0.33
Employee Benefits Expense 457 449 349
Other Expenses 116 82 74
Operating Profit 1849 1586 1283
OPM % 23.58% 24.89% 24.29%
Other Income 62 51 42
Interest 361 294 169
Depreciation 226 188 148
Profit before tax 1,324 1,154 1,007
Total Tax Exps 371 353 291
Net Profit 953 800 716
NPM % 12.15% 12.57% 13.57%
No. of shares 9.67 9.67 9.67
EPS in Rs 98 82 73

Comparison With Peers:

Name of the company Sales 3-year Revenue Growth 3-year PAT Growth OPM (FY21) D/E ROE  (FY21) ROCE(FY21) Debtor days P/E
KNR Constructions 2904 12% 23% 24% 0.37x 21.00% 21% 42 17
PNC Infratech 5788 24% 19% 24% 1.23x 17% 18% 25 14
HG Infra Engineering 2602 14% 37% 18% 0.64x 23% 26% 82 11
Dilip Buildcon 10168 4% -30% 21% 3x 8.00% 14% 42 33
Ashoka Buildcon 4992 1% 150% 31% 10x 57.00% 21% 66 11
IRB 5299 -11% -63% 44% 2.7x 1.78% 10% 23 48
GR Infra 7844 22% 15% 24% 0.97x 24% 26% 24 8.5

Recommendation on G R Infraprojects Limited IPO:

Review and Recommendation of GR Infrastructure IPO by IZ team is 6/10. 1. Well estbalished player in Construction activity. Completing projects in time in the last 20 years. GRIL has a track record of completing projects ahead of schedule. In fiscal 2019, the company completed a state HAM project 13 months ahead of schedule and has received early completion bonus in October 2020. 2. Experienced management and strong project execution skills. 3. Good Order flow and Comfortable debt position. 4. D/E of less than 1. 5. P/E of 8.5, Industry average is around 18. So, IPO is coming at good valuation.

Registrar of G R Infraprojects Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

G R Infraprojects Limited Novus Tower, Second Floor, Plot No. 18, Sector 18, Gurugram, Haryana - 122 015, India Phone No. +91 294 248 7370 Fax No. +91 294 248 7749 Email: cs@grinfra.com Website: www.grinfra.com

Discussion on G R Infraprojects Limited IPO:


    It is a pure-OFS, company will not receive anything.

    There are 3 ways under which road projects are distributed.

    1. EPC Model – In this model, the NHAI gives the upfront fees. Under this they will not have to maintain the roads. They construct and transfer the roads to NHAI.

    2. BOT Model- In this model, the road companies have to put their money initially and after completion of construction, they earn revenue by toll for certain period of time. Under, this they will have to maintain the roads as well.

    3. HAM Model – In this model, the NHAI provides 40% of the project cost upfront and rest 60% paid as annuity for certain period of time. Under, this they will have to maintain the roads as well.

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