GR Infra Projects IPO (GR Infra IPO) of Rs. 962 crore is entirely an offer-for-sale (OFS) of up to 1.15 crore equity shares by existing promoters and shareholders (PE investor Motilal Oswal). GR Infra Projects 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.
GR Infra Projects IPO Details:
Wed, 7th July – 9th July, 2021
₹ 5 /-
Offer for Sale of 11,508,704 Equity Shares
Issue Size (₹ Cr)
₹ 962 Cr (at upper end)
₹ 828 – 837
Issue Structure :
50% of the net offer
15% of the net offer
35% of offer ( ~ 3,949,297 Shares, 330.56 Cr)
Applications needed 1x Retail
HDFC Bank, ICICI Securities, Kotak Mahindra Capital, Motilal Oswal, SBI Capital Markets, Equirus Capital
KFin Technologies Pvt. Ltd.
Updates & Indicative Time Table:
Finalisation of Basis of Allotment 14-07-2021
Refunds/Unblocking ASBA 15-07-2021
Credit of equity shares 16-07-2021
Trading commences 19-07-2021
About GR Infra Projects
The Company was incorporated as ‘G. R. Agarwal Builders and Developers Limited’ in 1995.
GR Infra Projects is an integrated road EPC company with experience in design and construction of various road/highwayprojects across 15 States in India.
The company hasrecently diversified into projects in the railway sector.
GR Infra Projects principal business operations are broadly divided into three categories:
Civil construction activities, under which it provide EPC services
Development of roads, highways on a BOT basis, including under annuity and HAM
Manufacturing activities, under which include processing bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.
As of March 31, 2021, company had an Order Book of ₹ 19025.81 Crores which comprised 16 road EPC projects, 10 HAM projects and three other projects.
In April 2021, it has completed 100+ road construction projects successfully, and currently, 4 BOT projects are under construction.
The company owns and operates 3 manufacturing facilities at Udaipur (Rajasthan), Guwahati (Assam), and Sandila (Uttar Pradesh) and has a fabricating and galvanization unit at Ahmedabad, Gujarat.
As of March 31, 2021, the company had 16,233 permanent employees.
GR Infra IPO: Financials
Particulars / (₹ In Cr)
Revenue from Operations
Revenue Growth (%)
Profit Before Tax
Net Profit Margin
Equity Share Capital
FV in Rs.
EPS (₹ )
Market Cap in Rs. Cr.
Market Cap / Sales
GR Infra Projects Limited
Focused EPC player with primary focus on road projects.
Established track record of timely execution with cost over runs.
in-house integrated model;
Strong financial performance and credit rating;
Experienced Promoters with strong management team.
Uncertain risks form COVID-19 pandemic.
Company’s business is capital intensive.
Company may be vulnerable to the risk of rising and fluctuating steel, bitumen, cement and other raw material prices.
Company will not receive any proceeds from the IPO Offer.
GR Infra IPO: Assessment
With government’s focus on infrastructure in the country, the road construction space will continue to see new projects. GR Infra with its efficient operations is well placed to benefit from the growth in this sector
Amongst the EPC players, GR Infra was the fastest growing company, reporting an operating income growth of 47% CAGR over the period FY2015-20.As per RHP, in terms of profitability, GR Infra reported highest growth in EBITDA and reported PAT among the EPC players. Between FY18-21, company’s revenue clocked 34% CAGR growth, with PAT growing at 32% CAGR during the 3 years.
Future profitibailty may be affected by increase in c cost of construction materials, cement, steel, fuel, labour and equipment which constitutes a significant part of company’s operating expenses.
As of 31st Mar. 2021, the company had an order book of Rs. 19,026cr. This order book is 2.7 times of the construction services income. The orderbook comprising of 16 road EPC projects, 10 HAM projects and three other projects, spanned across the states of Uttar Pradesh, MadhyaPradesh, Maharashtra, Gujarat, Chhattisgarh, Rajasthan, AndhraPradesh, Bihar, Manipur, Odisha, Himachal Pradesh, West Bengal,Andaman & Nicobar Islands, Jharkhand and Sikkim.
Orders from NHAI constituted around 87.2% of the order book.
GR Infra Projects is L1 with bid of ₹ 592.18 crore for the proposed project relating to the ‘Construction of the elevated viaduct from end of the ramp at IDPL complex to start of ramp at Rajiv Chowk and three nos. of elevated stations, Udyog Vihar, Sector 17 and Rajiv Chowk (excluding architectural finishing and pre-engineered steel roof structure of stations) of Delhi – SNB Regional Rapid Transit System Corridor.
GR Infra Projects has a good order book. Order book for key players is depicted below.
Order Book in Rs. Million as of 31st Dec’2020
% of order book from Roads
Roads, Railways, Power, Bridges, City Gas Distribution (CGD)
Roads, Bridges, Railways, Airport, Manufacturing activities relating to
Hindustan construction company
Bridges, Power, Roads, Metros, Ports, Irrigation, Water supply projects
Bridges, Roads, Irrigation projects, urban development
Roads, Bridges, Power, Airport, Industrial area development
Roads, Mining, Irrigation
GR Infra has an established track record of efficient project management and execution aided by trained and skilled manpower, efficient deployment of equipment and an in-house integrated model. This has enabled them to compete projects prior to scheduled timelines.
GR Infra broad comparison with Peers:
Name of the Company
Total Income (₹ Cr)
Market price (₹) on 25 Jun, 2021
G R Infraprojects Ltd
KNR Constructions Ltd
PNC Infratech Ltd
HG Infra Engineering Ltd
Dilip Buildcon Ltd
Ashoka Buildcon Ltd
IRB Infrastructure Developers Ltd
Sadbhav Engineering Ltd
At upper price band of Rs. 837, GR Infra is demanding a P/E of 8.5x which is at discount to the peer average. The average industry P/E (price to earnings) stands at 16.73 times. Thus the issue seems to be attractively priced.
GR Infra projects IPO was last reported to be commanding a GMP of Rs. 350 as on 04-07-21.
PE investor Motilal Oswal iis making a complete exit in the GR Infra IPO after a 10 year investment with handsome gains.
I intend to apply in GR Infra Projects IPO. The GR Infra IPO looks quite good both from the angle of listing gains as well as medium term/ long term portfolio. The company has good internal systems, an integrated approach to projects, focus on operational efficiency, low debt levels and has over the years demonstrated financial discipline coupled with strategy to monetize assets.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.