GR Infraprojects IPO subscribed 2.28 times on day 1; NII portion booked 2.68 times

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The public offer of road EPC company GR Infraprojects has been subscribed 2.28 times so far on July 7, the first day of bidding. Investors have put in bids for 1.85 crore equity shares against offer size of 81.23 lakh shares.

Retail investors are at the forefront, putting in bids 3.25 times their reserved portion, the subscription data available on exchanges showed.

The portion set aside for non-institutional investors has subscribed 2.68 times and that of employees 24 percent, while qualified institutional buyers have put in bids for 49 percent of their reserved portion.

GR Infraprojects is planning to raise Rs 963.3 crore through its public issue comprising a complete offer for sale by existing shareholders. Of which, Rs 283 crore has already been raised from anchor investors at a higher end of the price band of Rs 828-837 per share.

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Anand Rathi believes GR Infraprojects is poised to deliver healthy growth on the topline as well as the bottomline on the back of its strong order book.

"On the valuation front, at the higher-end of the issue price band, the company is available at a discount to its peers. The company reported a return on equity (RoE) of 24.0 percent in FY2021, which is one of the best in the industry," said the brokerage.

Also read - GR Infraprojects IPO opens today: Analysts give a thumbs-up

GR Infraprojects (GRIL) is an integrated road engineering, procurement and construction (EPC) company. The company has experience in design and construction of various road/highway projects across 15 states in India and has recently diversified into projects in the railway sector.

As of March 2021, the company had an order book of Rs 19,025.8 crore including 16 EPC projects, 10 HAM projects among others

"Considering the government's focus on enhancing infrastructure assets in the country, primarily the road construction space will continue to attract investor. GR Infra with its efficient operations is well placed to benefit from the growth in the sector, we advise investors to subscribe to the issue," said Anand Rathi.