GR Infra IPO | DRHP | IPO Review & Allotment Details |

Below is the Review of GR Infra IPO. The IPO of GR Infra Projects is under process with the SEBI. As part of the IPO, GR Infraprojects have filed a Draft Red Herring Prospectus with the SEBI.  The Company GR InfraProjects was originally incorporated as ‘G. R. Agarwal Builders and Developers Limited’ on December 22, 1995 under the Companies Act, 1956 as a public limited company. The name of the company was changed to ‘G R Infraprojects Limited’ vide a resolution passed by our Shareholders on August 24, 2007. A fresh certificate of incorporation pursuant to change of name was issued by the RoC. Also Read the IPO Details of Prataap Snacks, Majestic Research and Green Signal Bio.

GR Infra IPO Red Herring Prospectus GR InfraProjects Offer Document Allotment Issue Date Share Price

Draft Red Herring Prospectus : GR Infra IPO

GR Infra IPO Draft Red Herring Prospectus Download

 

ROC Show-Cause Notice : GR Infra IPO

GR Infra had completed a private placement of NCDs to certain investors in August 2015. Subsequently, the RoC issued a show-cause notice dated August 17, 2016 (“SCN”) to our Company, our individual Promoters, some of our previous directors.

The RoC pursuant to an adjudication order dated September 1, 2016 (“Adjudication Order”) imposed penalties of Rs.250 million on GR InfraProjects Limited.

Borrowings : GR Infra IPO

As at July 31, 2016 GR Infra, on a consolidated basis, had

Secured borrowings which comprised of working capital facilities aggregating to Rs.352.00 million, term loans aggregating Rs.7,592.75 million, NCDs aggregating to Rs.1,500.00 million and non-fund based facilities aggregating to Rs.10,791.16 million; and

Unsecured borrowings aggregating to Rs.47.11 million.

Outstanding Legal Cases : GR Infra IPO

There are outstanding legal proceedings against GR Infra, some of our Directors, some of the company’s Promoters and one of the GR Infra’s Subsidiaries and adverse outcomes in such proceedings may negatively affect our business, results of operations and financial condition.

GR Infra IPO Pending Legal Cases against the company GR InfraProjects Limited

 

Significant Government Transactions : GR Infra IPO

As part of the GR Infra IPO RHP Document, they disclose the following important point:

GR Infra business is primarily dependent on projects in the infrastructure sector which are usually undertaken by government undertakings. GR Infra provide EPC services both, on a fixed-sum turnkey basis and on an item rate basis.

GR Infra also execute projects on BOT basis, operate them during the concession period and subsequently transfer the projects to the concessioning authority.

In relation to such contracts, GR Infra may be subject to additional regulatory scrutiny associated with commercial transactions with government owned or controlled entities and agencies.

Furthermore, in certain instances, GR Infra may face delays associated with collection of receivables from government owned or controlled entities

Capital Being Raised : GR Infra IPO

Through this IPO, GR Infra is planning to raise around Rs.450 crore. Some of this amount might be used for a buy-back.

GR Infra Recent Revenues

Incomes and Losses are an important part of an IPO and the IPO Document of GR Infra is no exception. Once you go through the IPO document, you  see that the revenues of GR Infra have been declining in the recent years.

Total Revenues have fallen by around 9% and the company’s Net Profit declined by around 30%.

Book Running Lead Managers of GR Infra IPO

The following entities are playing the role of IPO Managers for GR InfraProjects Limited:

  • HDFC Bank
  • ICICI Securities
  • IDFC Bank
  • Motilal Oswal
  • SBI Capital Markets
  • Karvy

Special Tax Benefits available to GR Infra

Outlined below are the possible Special tax benefits available to GR Infra and its shareholders under the direct tax laws in force in India (i.e. applicable for the Financial Year 2016-17 relevant to the assessment year 2017-18).

These benefits are dependent on the Company or its shareholders fulfilling the conditions prescribed under the relevant tax laws.

Hence, the ability of GR Infra or its shareholders to derive the Special tax benefits is dependent upon fulfilling such conditions, which based on business imperatives it faces in the future, it may or may not choose to fulfill.

  • Tax holiday under section 80IA of the Act
  • Tax benefits under section 35AD of the Act

These Tax benefits might act a little boost to the IPO of GR Infra.

Closing Statement : GR Infra IPO

Due to the high risk factors associated, there is a 50% chance that SEBI will approve the GR Infra IPO. The approval for the IPO should come in the coming months. If you have any further queries on the IPO of GR Infra Projects Limited, contact us at mail@finapp.in