GR Infraprojects made a strong debut on the bourses Monday as the shares were listed at Rs 1,715.8 apiece on the National Stock Exchange, a premium of 105 percent to the issue price of Rs 837 per share.
On the BSE, the shares got listed at a 103 percent premium at Rs 1,700.
The initial public offering (IPO) of GR Infraprojects was subscribed 12.42 times during July 7-9 as investors put in bids for around 10 crore equity shares against an offer size of 81.23 lakh shares.
GR Infraprojects is a focused engineering, procurement, and construction (EPC) player with an established record of timely execution that helps them to save overhead expenses and leads to a better Capex utilisation.
This is reflected in its performance that has grown its revenues at a 5-year CAGR of 47 percent backed with an above-average margin of 19-21 percent that the company has managed to retain.
Brokerages had recommended subscribing to the IPO on the back of GR Infraproject's business model, experienced promoters, strong management, strong order book, and strong balance sheet.
Besides, brokerages believe various government initiatives and infrastructure pushes may lead to further growth opportunities for the company.
"We like the financial performance posted by the company with healthy balance sheet status. Also, the company has a healthy order book, giving it strong revenue visibility going forward," said Hem Securities.
First Published: IST