B.R.Goyal Infrastructure, a key player in the infrastructure sector, is gearing up to launch its IPO to raise ₹85.21 crores. The company, known for its expertise in road construction, highways, and urban development, is set to offer 63.12 lakh fresh equity shares under a book-built issue. The IPO price band is set at ₹128 to ₹135 per share, with a market capitalization of ₹321.63 crores at the upper price band. The IPO opens on January 7, 2025, and closes on January 9, 2025, with the shares expected to be listed on the BSE SME segment on January 14, 2025.

Company Overview:

B.R.Goyal Infrastructure is dedicated to creating innovative solutions that contribute to national development. With over 35 years of experience, the company specializes in building roads, highways, and urban infrastructure. Their commitment to quality and sustainability is evident in every project, positioning them as a reliable name in the sector.

Led by a team of experienced promoters, including Mr. Brij Kishore Goyal, Mr. Gopal Goyal, Mr. Rajendra Kumar Goyal, and Mr. Yash Goyal, the company benefits from a strong leadership base. Their combined experience spans across civil construction and road projects, with Mr. Brij Kishore Goyal having over 18 years of experience in the civil construction business.

Financial Performance:

The financial growth of B.R.Goyal Infrastructure is notable, as highlighted by the revenue figures for the past few years. For the fiscal year 2024, the company generated ₹59,619.20 lakh in revenue, with a profit after tax (PAT) of ₹2,186.79 lakh. The EBITDA also showcases solid performance, with ₹2,988.87 lakh for the same period.

The key financial metrics for B.R.Goyal Infrastructure show promising growth:

• Pre-issue EPS: ₹12.58
• Post-issue EPS: ₹9.18
• Pre-issue P/E ratio: 10.73x
• Post-issue P/E ratio: 14.71x
• Industry P/E ratio: 21x
• ROCE for FY24: 21.80%
• ROE for FY24: 19.09%
• RoNW: 18.91%

The company's annualized EPS based on the latest financial data stands at ₹3.39, and its PE ratio is 39.82x.

Grey Market Premium (GMP):

The GMP of the B.R.Goyal Infrastructure IPO is currently at ₹35, showing a potential listing gain of 25.93%. However, investors are advised that Grey Market Premium is speculative in nature and cannot be relied upon for price discovery. The GMP serves primarily as an indicator of market sentiment before the official listing of the shares.

IPO Subscription and Allotment:

As of January 9, 2025, the IPO subscription status shows that the IPO has been oversubscribed by 18.33 times on its final day of the subscription period. This indicates strong demand for the shares.

The allotment process will be conducted on January 10, 2025, and investors can check their allotment status by visiting the registrar's website. A detailed guide on how to check allotment status will be available on the portal.

Objectives of the IPO:

The net proceeds from the IPO will be utilized for the following objectives:

1. Working Capital requirements: ₹150.00 lakh
2. General Corporate Purposes: ₹21.80 lakh

Market Maker and Lead Manager:

• BEELINE CAPITAL ADVISORS PRIVATE LIMITED is the book running lead manager for the IPO.
• Link Intime India Private Limited is the registrar for the issue.
• Spread X Securities Private Limited is the market maker.

Conclusion:

B.R.Goyal Infrastructure offers a fairly priced IPO with strong financials, a promising growth trajectory, and a solid track record in infrastructure development. Based on the GMP and the company's financial performance, risky investors may consider applying for potential listing gains. However, as always, it is essential to assess your own risk profile before investing in any IPO.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms and Laxmi Dental.

The Current active IPO are Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal.