This post on GR Infra IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to GR Infra IPO or not.

Related Posts : GR Infra IPO Review

GR Infra IPO: Grey Market Premium etc.

  • 07-07-21 GMP 410-420

Subscription: GR Infra IPO ( x times)

Day / X timesQIBNIIRetailEmpTotal 
Day 3168.58238.0412.5712.57
Day 22.796.317.500.755.9
Day 10.492.680.950.242.28
Total Retail Applications ~ 2380229
Appl wise Retail 10.25 x

Consolidated Brokerage Views on GR Infra IPO

Ajcon Global: “At the upper end of the price band of ₹837, the Company’s IPO is valued at P/BV multiple of 2.03x and P/E multiple of 9x which is cheap and at a good discount to peers (IRB Infra – P/E: 47x, Dilip Buildcon: P/E of 34x, KNR Construction: P/E of 17x) and Industry average P/E multiple of 23x despite having superior return ratios. We recommend to “SUBSCRIBE”the issue”

Angel Broking :”Subscribe: GRIL has a strong track record of timely execution, has presence across regions and has built up its size over years which should enable it
to capitalize on the opportunity arising from government spends on road/highways. Its standalone level, its net debt to equity is 0.3x and GRIL generates strong
cashflows (refer standalone numbers in RHP) which should help in meeting future equity commitments in HAM projects. Current standalone order book translates to
book to bill of 2.7x which is in in-line with peers while it leads in terms of ROCE and Revenue/EBITDA CAGR over the past five years. The valuations commanded
by GRIL are attractive and hence, we recommend “SUBSCRIBE” on the Issue.”

Ashika: “Given the healthy growth prospects and considering the strong emerging opportunity for road infrastructure, strong order book with order book to sales ratio of timely execution of order, expand to new geographies and segments, strong financials and healthy balance sheet augur well for the company’s performance going forward. Hence, it is recommended to “SUBSCRIBE” the issue.”

BP Wealth: “G R Infraprojects Ltd (GRIL)is an integrated road engineering, procurement and construction (EPC) company with experience in the design and construction of various road/highway projects across 15 states. Moreover, in-house integrated business model, experienced promoters & strong manage-ment team and strong order book bodes well for the company. Besides various government initia-tives and infrastructure push may lead to further growth opportunities for the company. On the valua-tion front, considering the upper price band, diluted EPS and FY 21 earnings, the company is valued at 8.51x P/E which is at a discount when compared to its listed industry peers (i.e, KNR Construction- 26.59x, PNC Infratech- 20.45x, HG Infra-12.53x and Dilip Buildcon-26.28x). Considering the factors such as strong financial performance, established track record and revenue visibility we give a “SUBSCRIBE” rating on this issue for the long term.”

Capital Market : ” Score 49/100 ; The consolidated EPS for FY2021 was Rs 98.6 and thus on consolidated FY21 EPS the PE works out to about 8.5 times. In comparison the AshokaBuildcon, PNC Infratech, KNR Construction, HG Infra and IRB Infrastructure Developers quotes at a PE of 11.3 times, 11.4 times, 20.1 times, 9.5 times and 35.2 times of their FY21 consolidated EPS respectively. DilipBuildcon quotes at a PE of 24.5 times of its consolidated FY2021 EPS. “

Choice Broking: “Considering the government’s focus on enhancing infrastructure assets in the country, primarily the road construction space will continue to attract private capital. GR Infra with its efficient operations is well placed to benefit from the growth in the sector. However, with concerns on the sustainability of the EPC profitability in the near term, we assign a “Subscribe for Long Term” rating for the issue.”

Geojit Financial Services:” At the upper price band of Rs.837, GRIL is available at PE of 8.5x (FY21) which appears reasonably priced compared to peers. We assign a Subscribe rating, with a long term perspective as growth in order book, pick up in execution, diversification to other sectors like railways provides visibility for future growth.”

Phillip Capital: “We find the risk-reward profile attractive for GR Infra and recommend SUBSCRIBE.”

Prabhudas Lilladher: We are positive on the company given it’s comfortable order book, robust bid pipeline with overall infra-push in the economy, stellar execution pace with most projects getting completed before/within stipulated time, geographical diversification, strong EBITDA & PAT margins, and controlled debt levels. That apart, GRIL has a strong portfolio of 1 operational BOT and 14 HAM projects (5 operational) with equity commitment of Rs 2,500 crore (Rs 1,300 crore invested). Considering growing asset monetization deals and rising attractiveness of InvITs for institutional investors, GRIL is well placed to monetize its operational assets and free up invested capital for future growth and capital infusion in newer projects.”

SMC: “Score 2.5/5 ; GR Infraprojects is an integrated road engineering, procurement and construction company with
experience in design and construction of various road/highway projects across 15 states in India and has
recently diversified into railway sector projects. The company has healthy order book which gives strong
revenue visibility going forward. Also the infrastructure sector is booming and poised for bright prospects
ahead. However, its business is dependent majorly on road projects in India and the ones which are
awarded by govt authorities. Any adverse change in govt policies may lead its contracts being foreclosed
and terminated which can affect its business.”

SP Tulsiyan Website: “Strong Fundamentals, backed with Reasonable Valuations, lead to high probability of listing gains and also keep outlook healthy over the longer term. Hence, we recommend a ‘subscribe’ to the IPO.”


Standard disclaimer: Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above information is collated from various online sources and is for educational purpose only. Please visit individual brokerage sites to read the actual reports. Please do not make your investment decisions based on this info as it is not complete and exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.

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