G R Infraprojects Limited IPO oversubscribed by over 100 times
Most oversubscribed IPO in the Road and Highway sector in over a decade
Chennai, July 09, 2021: G R Infraprojects Limited (“GRIL” or “Company”), an integrated road engineering, pro cur ement and construction (“EPC”) company with experience in design and construction of various road/hig hway projects; received bids of 83,33,04,538 shares against the offered 81,23,594 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 12.57 times. While the Qualified Institutional Buyer ca tegory was subscribed 168.58 times, the Non-Institutional Investor category was subscribed 238.04 times and Employee Reserved category was subscribed 1.37 times.
The Offer was a complete offer for sale (“Offer for Sale”) at the upper price band of Rs. 837 per share.
Key brokerage houses like Angel Broking, IDBI Capital, Reliance securities, Prabhudas Lilladher and Phillip Cap ital had given recommendations of “Subscribe” to the issue for long term perspective.
From the total capital outlay provided in the budget estimates for FY 2022, the infrastructure segment occupies a share of 48.6%. In the infrastructure segment, majority of the capital outlay of 40.2% was allocated to the Min istry of Road Transport and Highways wi th a value of ₹1,082 billion. The total construction spend in the ov erall infrastructure segment from FY15-19 was valued at ₹17.93 trillion. Roads had a share of 48.3% in FY15-19. Inv estments were largely driven by the government’s implementation of the Nat io nal Highways Development Pr oject (NHDP) and continued emp ha sis on improving the rural and state road network by various st ate governm ents. Bharatmala Pariyojana (BMP) is a new umbrella scheme, which supersedes the existing National Highways Development Programme (NHDP). The programme envisages to construct about 65,000 km of highways under National Corridor (North-South, East-West and Go lden Quadrilateral), economic corridors, inter-corridor roads, feeder roads, international connectivity, border roads, coastal roads, port connectivity roads and expressways. The scheme will include the existing NHDP pr ogramme as well.
HDFC Bank Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Motilal Oswal Investm ent Advisors Limited, SBI Capital Markets Limited, Equirus Capital Private Limited are the BRLMs to the Offer.
Company Information
The Company’s principal business of civil construction comprises EPC and BOT projects in the road sector. The Company has, since 2006, executed over 100 road construction projects. As per the red herring prospectus of the Company dated June 26, 2021 (the “RHP”), out of its BOT projects, it has one operational road project which has been constructed and developed on a BOT (annuity) basis and 14 road projects which have been awarded to the company under the HAM, out of which five projects are currently operational, four projects are under cons truction and construction is yet to commence on five of these projects. The Company also has experience in con structing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges and has recently diversified into projects in the railway sector.
