GR Infraprojects Ltd. will launch a Rs 964.4-crore initial public offering on Wednesday as private equity investors look to exit and promoters plan to pare holdings in the roads and highway developer.
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Ownership
The offer-for-sale comprises 11.90% of the post-issue equity capital. After the share sale, public will hold 13.46% of the equity.
Business
GR Infraprojects’ principal business is civil construction comprising engineering, procurement & construction; build-operate-transfer; and HAM projects in the road sector. Since 2006, it has executed more than 100 road construction projects.
The company has one operational road project, constructed and developed on a BOT (annuity) basis; and 14 awarded under the HAM model. Of these, five road projects are currently operational, four are under construction; while construction is yet to commence on the remaining five.
Operational Metrics
GR Infraprojects has an order book of Rs 19,025.8 crore, primarily comprising EPC and HAM projects in the road sector across Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Chattisgarh, Rajasthan, Andhra Pradesh, Bihar, Manipur, Odisha and Himachal Pradesh.
The company, Agarwal said, aims to add Rs 15,000 crore of order book in the fiscal ending March 2022.
It had a consolidated debt worth Rs 4,494.9 crore as of March 2021.
Financial Metrics
The highway developer saw its revenue grow at an annualised rate of 32.59% in the last four years, while its profit reported a CAGR of 25% during the same period, according to the red herring prospectus.
Peer Comparison
GR Infraprojects competes with IRB Infrastructure Ltd., Ashoka Buildcon Ltd., Dilip Buildcon Ltd., and PNV Infratech, among others, to bag orders from the National Highway Authority of India and the Ministry of Road Transport and Highways.
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