GR Infraprojects IPO Saw Strong Demand from Investors

The public offer of GR Infraprojects continued to witness overwhelming response from investors given the expected infrastructure boost in coming years and attractive valuations compared to peers, as it subscribed 5.75 times on the second day of bidding.

BY Realty Plus
Published - Saturday, 10 Jul, 2021

GR Infraprojects IPO Saw Strong Demand from Investors

The public offer of GR Infraprojects continued to witness overwhelming response from investors given the expected infrastructure boost in coming years and attractive valuations compared to peers, as it subscribed 5.75 times on the second day of bidding. The offer has received bids for 4.67 crore equity shares against IPO size of 81.23 lakh equity shares, the subscription data available on the exchanges showed. The retail investors have put in bids 7.49 times their reserved portion and non-institutional investors 6.31 times their portion set aside. A part set side for qualified institutional buyers has subscribed 2.78 times and that of employees 75 percent. GR Infra has a strong integrated business model. As on March 2021, its equipment base comprised of over 7,000 construction equipment and vehicles. Its in-house integrated model reduces dependence on third party suppliers for key raw materials, construction equipment and other products and services required in the development and construction of its projects. The total investment done by the company as of March 2021 in all its operational and under construction build-operate-transfer (BOT) & HAM projects was Rs 1,300 crore and balance to be done is Rs 1,200 crore. "The company also has very low debt with net debt to equity of 0.2x. Hence, the company is well placed to meet its funds requirement for growth with low debt and ready monetizable assets," said Yes Securities.