GR Infraprojects, the road contractor developer, doubled investors' wealth on the listing day despite weak market sentiment, on July 19. The stock climbed 108.7 percent to close at Rs 1,746.80 on the BSE, against the issue price of Rs 837.
It traded with volume of 7.68 lakh equity shares. It opened at Rs 1,700, up 103 percent and hit the day's high of 1,838.80, rising 120 percent. The healthy IPO subscription, orderbook and financials and the government's focus on infrastructure development supported the listing, experts said.
The Rs 963-crore public issue of the road engineering, procurement and construction company was subscribed 102.58 times during July 7-9.
"The company has posted strong financial performance with healthy balance sheet status. Also, the company has a healthy order book which gives strong revenue visibility going forward," said Astha Jain, Senior Research Analyst at Hem Securities.
The company strives to maintain robust financial position and low debt levels. Emphasis on a strong balance sheet enables the company to pursue future opportunities for growth, making a good bet for the long term, Jain said.
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With the experience of over 25 years and more than 100 road construction projects executed since 2006, the company has developed an established track record of efficient project management and execution experience, involving trained and skilled manpower, efficient deployment of equipment and an in-house integrated model. These attributes have enabled company to complete projects prior to or by scheduled timelines.
As of March 31, 2021, the company had an order book of Rs 19,025.8 crore and comprised 16 EPC projects, 10 HAM projects and three other projects, which gives it a strong revenue visibility.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.