Subscribe to GR Infraprojects: Ajcon Global

Ajcon Global has come out with its report on GR Infraprojects. The research firm has recommended to ''Subscribe'' the ipo in its research report as on July 07, 2021.

Broker Research

July 08, 2021 / 12:38 IST

Clean Science and Technology and GR Infraprojects are headed to the market with their initial share-sale offers next week to raise a little over Rs 2,500 crore cumulatively. (Image: Shutterstock)

26 Aug, 2025 12:21

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Ajcon Global IPO report on GR Infraprojects

G R Infraprojects Limited (“GR Infra”) was incorporated on December 22, 1995. The Company has gradually increased its execution capabilities in terms of the size of projects that they have bid for and executed. For example, one of the first road projects that they executed was for the Public Works Department, Rajasthan in 1997 with a Bid Project Cost of ₹2.65 crore, whereas the project recently awarded by NHAI, i.e. Vadodara Mumbai Expressway project in the state of Maharashtra on HAM basis, to them in 2020 involves a Bid Project Cost of ₹2,747 crore. Their individual Promoters have more than 25 years of experience in the construction industry. Prior to the incorporation of the company, their individual Promoters were associated with M/s. Gumani Ram Agarwal, a partnership firm engaged in the construction business, which was acquired by the company in 1996.

Valuation and Outlook

At the upper end of the price band of ₹837, the Company's IPO is valued at P/BV multiple of 2.03x and P/E multiple of 9x which is cheap and at a good discount to peers (IRB Infra - P/E: 47x, Dilip Buildcon: P/E of 34x, KNR Construction: P/E of 17x) and Industry average P/E multiple of 23x despite having superior return ratios. We recommend to "SUBSCRIBE" the issue due to the following factors.

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