By Dominick Rodrigues
Mumbai : G R Infraprojects Limited (GRIL) will be highlighting its Initial Public Offering (IPO) of 1,15.08,704 equity shares from July 07, 2021to July 9, 2021 at a price band of Rs 828 to Rs 837 per equity share aggregating Rs 963 crores. With The Offer being only an Offer for Sale, the Company will not receive any proceeds from the Offer.
GRIL is an integrated road engineering, procurement and construction (“EPC”) company into design and construction of various road/highway projects across 15 States in India, while having recently diversified into projects in the railway sector.
The company has — in its projects till June 26, 2021 — one operational road project constructed and developed on a BOT (annuity) basis, besides14 road projects awarded to it under the HAM, out of which five projects are currently operational and four projects under construction. However, construction is yet to commence on five of these projects.
The Company also has experience in constructing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges and has recently diversified into projects in the railway sector.
Recalling the origins of the company from 1965, Vinod Kumar Agarwal, Chairman, GR Infraprojects Limited said his enterprising farmer father noticed the lack of roads and started his first project in this regard in Jaisalmer before shifting to Udaipur in 1985.
With the post-1998 scenario highlighting government focus on major road projects including linking rural areas, the company got involved in this business with 2006 witnessing their first, Rs 150-crore, project.
The company completed a three-year-project in Shillong within barely two years, and is currently involved in nine projects, he said while underscoring the need for equity in expenditure for these projects through the IPO.
Noting the company has never compromised on project quality or delivery timeline, Ajendra Kumar Agarwal, Managing Director, GR Infraprojects Limited, said that it now has an orderbook of Rs 19,000 crores with 87.16% orders coming in from the NHA as of March 31, 2021 – besides executing over 100 projects in15 states since 2006.
While the pandemic witnessed the company remaining closed for two months in the first wave, the second wave did not affect it much because of their preparedness through establishing quarantine centres and medical facilities, he said.
Replying to a question about rising prices and inflation in materials costs, he said all projects have a price-escalation clause and the company had a mechanism involving government compensation for price escalation on index basis.
The company’s focus is also on ‘greenfield’ projects, metro and and hi-speed rail, he said adding that it was also involved in bidding over five years – and receiving two projects – in the Railways.
Highlighting the company’s CAPEX plan as 3% to 5% for future projects, he said the company is aligned to India’s growth story with focus in this direction through its hallmark of timely delivery, quality assurance and reduced maintenance costs.
Anand Rathi, Chief Financial Officer, GR Infraprojects Limited, described the company’s profit margin at 10.59% for FY 2021.
HDFC Bank Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited and Equirus Capital Private Limited are the BRLMs to the Offer.
