G R Infraprojects Ltd (GRIL) today filed a Draft Red Herring Prospectus (DRHP) with the capital markets regulator SEBI for its initial public offering (IPO). The infrastructure company is looking to sell 1.15 crore equity shares of face value Rs 5 each which will be an offer for sale (OFS) by existing shareholders and will not include a fresh issue of equity shares. Prior to the IPO, the promoter and promoter group collectively own an 88.04% stake in the company while the rest is owned by other investors. This is not the first time GRIL has knocked on SEBI’s door for an IPO. Earlier in 2018, the company had filed paper for an IPO worth Rs 1,800 crore.
Promoters of GR Infraprojects, Lokesh Builders Private Limited will be selling 11.42 lakh shares of the company through the IPO, trimming their 33% stake in the firm. From the Promoter Group, Jasamrit Premises, Jasamrit Fashions, Jasamrit Creations, and Jasamrit Construction will be selling shares totalling 3.07 lakh. Apart from this, India Business Excellence Fund and India Business Excellence Fund 1 will be exiting the company through the IPO, selling their entire 95.73 lakh shares. Additionally, Pradeep Agarwal will also sell most of his 5 lakh shares in the company.
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GRIL will not receive any funds from the issue as only the selling shareholders will be getting the funds raised through the IPO. The company’s IPO may have a portion reserved for the employees of the firm, who might be able to bid for the issue at a discounted price. HDFC Bank, ICICI SECURITIES, Kotka Mahindra Capital are among the Book Running Lead Managers to the GR Infraprojects IPO.
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GR Inffraprojects is a leading infrastructure company in the country. In the financial year 2018, the company reported a net profit of Rs 412 crore, which improved to Rs 799 crore in the year ending March 2020. Additionally, GRIL was able to make a net profit of Rs 702 crore in the nine months ending December 2020. The company could join peers such as KNR Constructions, PNC Infratech, Dilip Buildcon, HG Infra Engineering, among others on the stock exchanges.
