GR Infraprojects’ Rs 963-crore IPO will be available for subscription next week, in a price band of Rs 828-837 per share of face value of Rs 5, each. The public issue will open for subscription on Wednesday, 7 July 2021 and close on Friday, 9 July 2021. The equity shares of GR Infraprojects (GRIL) are likely to be listed on BSE and NSE. Upon listing, GRIL will join industry peers such as KNR Constructions, PNC Infratech, HG Infra Engineering, Dilip Buildcon, Ashoka Buildcon, IRB Infrastructure Developers and Sadbhav Engineering.
Investors can make bids for a minimum of 17 equity shares and in multiples of thereafter. Investors will require a minimum of Rs 14,076 bid for one lot. Up to 50 per cent of the net offer has been reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail category and the remaining 15 per cent for Non-Institutional Investors (NIIs). The public issue also includes a reservation of up to 2.25 lakh equity shares for eligible employees. A discount of Rs 42 per equity share has been offered to eligible employees bidding in the employee reservation portion.
GR Infraprojects’ price/earnings ratio based on diluted EPS for fiscal 2021 at the upper end of the price band is 8.51 as compared to the average industry peer group PE ratio of 16.73. The weighted average return on net worth for fiscals 2021, 2020 and 2019 is 26.15 per cent. The average cost of acquisition of equity shares for the selling shareholders namely Lokesh Builders Private Ltd is Rs 22.12, Jasamrit Premises Private Ltd, Jasamrit Fashions Private Ltd, Jasamrit Creations Private Ltd, Jasamrit Construction Private Ltd is Rs 2.50, each, India Business Excellence Fund, India Business Excellence Fund I is Rs 50.78, each and Rs 130.80 for Pradeep Kumar Agarwal. The promoters of GR Infraprojects are Vinod Kumar Agarwal, Ajendra Kumar Agarwal, Purshottam Agarwal and Lokesh Builders Private Ltd.
According to Axis Capital IPO note, the finalisation of basis of allotment is likely to take place on 14 July. The initiation of refunds or unblocking of funds from ASBA accounts might happen on 15 July, while the equity shares are likely to be credited to depository accounts on 16 July 2021. GR Infraprojects stocks are expected to list on bourses on 19 July 2021.