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B.R.Goyal Infrastructure IPO subscribed 1.45 times on Day 2. Check GMP and other details
Team Finance Saathi
08/Jan/2025
What's covered under the Article:
- B.R.Goyal Infrastructure IPO offers a price band of ₹128-₹135 per share, with an issue size of ₹85.21 Crores.
- Grey Market Premium (GMP) of ₹35 indicates strong listing gains of 25.93%.
- Financials show strong growth in revenues and profitability, with healthy ROCE and ROE metrics.
B.R.Goyal Infrastructure has been a major player in India's infrastructure sector for over 35 years, specializing in road construction, highways, and urban development. The company has played a key role in driving national progress by delivering quality and sustainable infrastructure solutions. With a proven track record and leadership under experienced promoters, B.R.Goyal Infrastructure is committed to shaping a better tomorrow through its innovative construction projects.
The B.R.Goyal Infrastructure IPO is a book-built issue of ₹85.21 Crores, consisting entirely of a fresh issue of 63.12 lakh shares. The subscription period opens on January 07, 2025, and closes on January 09, 2025, with the listing date set for January 14, 2025, on the BSE SME platform. The price band for the IPO is ₹128 to ₹135 per equity share, and the market capitalization at the upper price band of ₹135 will be approximately ₹321.63 Crores.
The lot size for the IPO is 1,000 shares, with retail investors required to invest a minimum of ₹1,35,000. High-Net-Worth Individuals (HNIs) must apply for a minimum of 2 lots (2,000 shares), totaling ₹2,70,000.
Subscription and Grey Market Premium (GMP):
As of January 05, 2025, the Grey Market Premium (GMP) for the B.R.Goyal Infrastructure IPO is ₹35, suggesting potential listing gains of 25.93%. The strong GMP is indicative of investor confidence and demand for infrastructure-related IPOs, especially those with solid growth prospects.
Financial Performance and Valuation:
The company has shown significant growth in its financials, with revenues from operations for the period ending July 31, 2024, reported at ₹15,686.45 lakh. While there is a decline compared to the previous fiscal year, the figures are still indicative of a solid revenue base for future growth.
- EBITDA for FY2024 stands at ₹671.36 lakh, showing a decline from ₹2,988.87 lakh in FY2023, reflecting challenges in the infrastructure sector.
- Profit After Tax (PAT) for the period ending July 31, 2024, is ₹199.32 lakh, with a strong growth trajectory from ₹747.98 lakh in FY2022, demonstrating the company’s ability to generate profit even during challenging years.
Key performance metrics indicate:
- Pre-issue EPS of ₹12.58 and post-issue EPS of ₹9.18 for FY24.
- Pre-issue P/E ratio of 10.73x and post-issue P/E ratio of 14.71x, with the industry P/E ratio standing at 21x.
- Return on Capital Employed (ROCE) for FY24 is 21.80%, and Return on Equity (ROE) is 19.09%, highlighting the company’s efficiency in capital utilization and profitability.
Investment Recommendation:
The B.R.Goyal Infrastructure IPO offers a fairly priced investment option with solid financial growth indicators and a GMP suggesting good listing gains of 25.93%. The company’s strong management team, with decades of experience, and its established track record in the infrastructure space, makes this IPO appealing to investors.
For risk-tolerant investors looking for listing gains in the infrastructure sector, this IPO could be an attractive option. However, long-term investors should evaluate the company’s ability to navigate industry challenges, especially with the varying growth in its financial performance.
The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.