GR Infraprojects IPO subscribed 5.90 times on day 2; Clean Science 4.28 times
Premium- The GR Infraprojects issue received a subscription of 46.57 million shares against the offered 7.90 million equity shares, as per the data available on the bourses
The Rs963 crore initial public offer (IPO) of G R Infraprojects Limited an integrated road engineering, procurement and construction (“EPC") company was subscribed 5.90 times on the second day of bidding.
The issue received a subscription of 46.57 million shares against the offered 7.90 million equity shares, as per the data available on the bourses.
The portion reserved for retail investors was subscribed 7.49 times. While the Qualified Institutional Buyer category was subscribed 2.79 times and the Non-Institutional Investor category was subscribed 6.31 times.
Nirmal Bang in an IPO note said “Over the years, the company successfully transformed from being a sub-contractor to a prime contractor. GR also commands above average return on capital employed (ROCE) of 24%, while the order book/sales is in line with industry peers at 2.6 times,which offers strong growth visibility for coming years. On the valuation front, at the given upper price band of Rs. 837, GR Infraprojects appears attractive at price equity multiple of 8.7 times its FY21 earnings per share (EPS).
The offer will be a complete offer for sale of up to 11.51 million equity shares (offer for sale) at the upper end of its price band of Rs837 per share.
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 book running lead managers to the Offer.
G R Infrapojects' principal business of civil construction comprises EPC and BOT projects in the road sector. Since 2006, it has executed over 100 road construction projects. It also has experience in constructing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges and has recently diversified into projects in the railway sector.
The public offer of specialty cjemicals maker Clean Science and Technology ltd, saw a overwhelming demand from retail investors as it got subscribed 4.38 times on the second day of bidding
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The issue received 52.69 million equity shares against the offer size of 12.3 crore equity shares, according to the data available on the exchange.
The qualified institutional buyers portion was subscribed 2.17 times, while non-institutional investors portion saw a subscription of 4.61 times, and retail investors portion was subscribed 5.55 times.
Anand Rathi in an IPO note said Clean Science and Technology, a family-owned firm, is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive.
“The company is available at the upper end of the IPO price band, it is offered at 48.2 times FY21 earnings, with a market cap of Rs. 9,559.7 crore and possesses a healthy balance sheet and robust return ratio profile".
Axis Capital Limited, JM Financial Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the offer.
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