What You Need To Know

GR Infraprojects Ltd. will launch a Rs 964.4-crore initial public offering on Wednesday as private equity investors look to exit and promoters plan to pare holdings in the roads and highway developer.

The three-day IPO, opening on July 7, is an offer-for-sale of 1.15 crore shares by promoters and private equity arm of Motilal Oswal group — IBEF-I and IBEF, according to the north India-based company’s red herring prospectus. The price band has been fixed at Rs 828-837 apiece.

The offer-for-sale is to provide exit to the private equity player. The company does not need growth capital, said Vinod Kumar Agarwal, chairman at GR Infraprojects, in an interaction with BloombergQuint. It will use internal accruals and debt to provide capital for hybrid annuity model projects, he said. The 14 HAM projects, according to Agarwal, will be hived off into an infrastructure investment trust over the next few years upon being completed to release the capital.

Key Details

• Offer for sale: Rs 952.9-964.4 crore.

• Minimum bid size: 17 equity shares and in multiples thereof

• Listing: NSE and BSE.

• Book running lead managers: HDFC Bank, ICICI Securities, Kotak Mahindra Capital, Motilal Oswal Investment Banking, SBI Capital Markets, Equirus

After the issue, market value of the company, according to BloombergQuint’s calculation, will be Rs 8,102.5 crore at the upper end of the price band.

Watch the full interview here: