G R Infraprojects Limited IPO oversubscribed by over 100 times
Most oversubscribed IPO in the Road and Highway sector in over a decade
G R Infraprojects Limited (“GRIL” or “Company”), an integrated road engineering, procurement and construction (“EPC”) company with experience in design and construction of various road/highway projects; received bids of 83,33,04,538 shares against the offered 81,23,594 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 12.57 times. While the Qualified Institutional Buyer category was subscribed 168.58 times, the Non-Institutional Investor category was subscribed 238.04 times and Employee Reserved category was subscribed 1.37 times.
The Offer was a complete offer for sale (“Offer for Sale”) at the upper price band of Rs. 837 per share.
Key brokerage houses like Angel Broking, IDBI Capital, Reliance securities, Prabhudas Lilladher and Phillip Capital had given recommendations of "Subscribe" to the issue for long term perspective.
From the total capital outlay provided in the budget estimates for FY 2022, the infrastructure segment occupies a share of 48.6%. In the infrastructure segment, majority of the capital outlay of 40.2% was allocated to the Ministry of Road Transport and Highways with a value of ₹1,082 billion. The total construction spend in the overall infrastructure segment from FY15-19 was valued at ₹17.93 trillion.
Roads had a share of 48.3% in FY15-19. Investments were largely driven by the government’s implementation of the National Highways Development Project (NHDP) and continued emphasis on improving the rural and state road network by various state governments. Bharatmala Pariyojana (BMP) is a new umbrella scheme, which supersedes the existing National Highways Development Programme (NHDP).
The programme envisages to construct about 65,000 km of highways under National Corridor (North-South, East-West and Golden Quadrilateral), economic corridors, inter-corridor roads, feeder roads, international connectivity, border roads, coastal roads, port connectivity roads and expressways. The scheme will include the existing NHDP programme as well.
HDFC Bank Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited, Equirus Capital Private Limited are the BRLMs to the Offer.