GR Infraprojects Limited

IPO Analysis by
Agenda
IPO Analysis of GR Infraprojects Limited in following sections:
• IPO Details
• Shareholding Pattern
• Financial Highlights
• Business Profile
• Order book and Project Life Cycle
• Profitability – FY 2021
• Manufacturing Facilities and project execution capabilities
• Risk Factors
• Peer Comparison
 IPO Details – GR Infraprojects
Issue Period 07-Jul-2021 to 09-Jul-2021
Initial Public offer of 11,508,704 Equity HDFC Bank, ICICI Securities
Issue Size Kotak Mahindra Capital
Shares aggregating upto Rs. [.] million
Issue Size ~ 963 Crore Book Running Company, Motilal Oswal
Lead Managers Investment Advisors, SBI
Implied Company Valuation ~8,093 Crore Capital Markets, Equirus
Issue Type 100% Book Building Capital
Price Range Rs.828 to Rs.837
Face Value Rs.5 Sponsor Bank Axis Bank Limited
Discount to Employee Rs.42/- per Equity Share for Eligible
Reservation Category Employees Name of the KFin Technologies Private
Registrar Limited
Bid Lot 17 Equity Shares and in multiples thereof
Minimum Order Quantity 17 Equity Shares
Retail Investor – Maximum and Minimum
bidding
Amount
Note: This is also an offer of Sale so none of the proceeds of the IPO Application Lots Shares (Cut-off)
will be available with company and all proceeds will go to the Minimum 1 17 ₹ 14,229
shareholders selling equity. Maximum 14 238 ₹ 1,99,206
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 Shareholding Pattern
Shareholding: Pre and Post IPO Promoter and Promoter Group Current Shareholding Pattern

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Financial Highlights

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 Business Profile
We are an integrated road engineering, procurement and construction (“EPC”) company with experience in design and construction of
various road/highway projects across 15 States in India and having recently diversified into projects in the railway sector. Our principal
business operations are broadly divided into three categories: (i) civil construction activities, under which we provide EPC services; (ii)
development of roads, highways on a Build Operate Transfer (“BOT”) basis, including under annuity and Hybrid Annuity Model
(“HAM”); and (iii) manufacturing activities, under which we process bitumen, manufacture thermoplastic road-marking paint, electric
poles and road signage and fabricate and galvanize metal crash barriers.

Our principal business of civil construction comprises EPC and BOT projects in the road sector. We have, since 2006, executed over 100
road construction projects. As of the date of this Red Herring Prospectus, out of our BOT projects, we have one operational road project
which has been constructed and developed by us on a BOT (annuity) basis and 14 road projects which have been awarded to us under the
HAM, out of which five projects are currently operational, four projects are under construction and construction is yet to commence on
five of these projects. We also have experience in constructing state and national highways, bridges, culverts, flyovers, airport runways,
tunnels and rail over-bridges.

We have over the years developed an established road EPC business and have gradually added facilities to support and supplement our
road construction business. As part of our in-house integrated model, we have developed inhouse resources with key competencies to
deliver a project from conceptualization to completion that includes our design and engineering team, three manufacturing units at
Udaipur, Rajasthan, Guwahati, Assam and Sandila, Uttar Pradesh for processing bitumen, thermoplastic road-marking paint and road
signage and a fabrication and galvanization unit at Ahmedabad, Gujarat for manufacturing metal crash barriers and electric poles. In
addition, as of March 31, 2021, our equipment base comprised over 7,000 construction equipment and vehicles.

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 Order book and Project Life Cycle
Entity Wise Order Book as on 31st March 2021

State Wise Order Book as on 31st March 2021

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 Profitability – FY 2021
Revenue (Rs. Mn)
Others;
1,922.11; 2%

BOT Projects;
23,533.39; 30%
In last three years, Consistently shown:
Growth in the Revenue
EBITDA Margin of around 24%
Increase in PAT
Return of Net worth was Rs 24%
EPC; 52,985.59;
68% Total employee 16,333
Track record of completion of projects before time

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Manufacturing Facilities and project
execution capabilities

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Risk Factors
1. Operating cash loss in last three years
2. Increase in the debtors and annuity receivables from concession grantor
3. High receivables in terms of the revenue
4. There are litigations against the company

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Peer Comparison
On multiple basis, GR Infraprojects
Ltd. seems to be lucrative. However,
this IPO will not fetch any amount to
company so there is limited option
for the company to grow without
the additional capital. In addition,
company has seen negative
operating cash flow in last three
years.
Considering the current euphoria,
there may be high demand for IPO
and investors may do profit booking.
However, Investors are required to
take a cautious note before
investing.

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 Business Financial Investor Business Growth
Consulting and Management Relations and Planning Strategy
Research and compliance valuation

Pl consult your financial advisor before investing

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Saurabh.garg@nishkaera.com

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