B R Goyal Infrastructure IPO to Open on January 7: Check Details

B R Goyal Infrastructure IPO

B R Goyal Infrastructure IPO: All You Need to Know About the Issue, Price Band, and Subscription Details

B R Goyal Infrastructure Limited, a well-established player in India’s infrastructure and construction sector, is set to launch its Initial Public Offering (IPO) on January 7, 2025.

This marks a significant step in the company’s journey to expand its operations and enhance shareholder value.

The IPO will aim to raise a total of ₹85.21 crore by issuing 63.12 lakh fresh equity shares. The price band for the IPO has been fixed between ₹128 and ₹135 per share, offering investors a potential entry point into one of India’s growing infrastructure and EPC (Engineering, Procurement, and Construction) services firms.

This IPO is expected to generate considerable interest, especially within the Small and Medium Enterprises (SME) segment, as it is one of the three IPOs opening in this segment next week.

Alongside Delta Autocorp and Indobel Insulation, B R Goyal Infrastructure’s IPO offers investors a chance to participate in the development of India’s infrastructure landscape.

The subscription window for the IPO will remain open until January 9, 2025, giving investors a three-day period to place their bids.

IPO Overview and Subscription Details

• IPO Opening Date: January 7, 2025
• IPO Closing Date: January 9, 2025
• Price Band: ₹128 – ₹135 per share
• Issue Size: ₹85.21 crore
• Equity Shares Offered: 63.12 lakh fresh equity shares (no Offer for Sale, or OFS)
• Minimum Bid Lot: 100 shares
• Allotment Date: January 10, 2025
• Refund Process: January 13, 2025
• Listing Date: January 14, 2025 (on BSE SME platform)

B R Goyal Infrastructure’s IPO will be purely a fresh issue, meaning the company will not offer any existing shares for sale through the Offer for Sale (OFS) route.

As a result, the entire amount raised will be directly received by the company, which will utilize the funds for expansion and strengthening its operations.

Purpose of Fund Utilization

The capital raised through this IPO will primarily be allocated towards the following purposes:

1. Capital Expenditure: A portion of the funds will be directed towards the company’s capital expenditure, including investments in machinery, infrastructure, and operational equipment necessary to scale up its services.
2. Working Capital Requirements: The funds will help support the company’s working capital needs, ensuring smooth day-to-day operations and timely execution of ongoing projects.
3. Inorganic Growth via Acquisitions: The company plans to use part of the funds for acquisitions, enabling it to expand its service offerings and geographical presence. This strategic growth will further strengthen its position in the competitive infrastructure market.
4. General Corporate Purposes: A portion of the funds will also be used for general corporate needs, such as debt repayment and strengthening financial stability, which will position the company well for future growth opportunities.

Additionally, prior to the IPO, B R Goyal Infrastructure raised ₹1.5 crore in a pre-IPO round by issuing 1.2 lakh shares.

As a result, the size of the new issue was revised downward from the earlier figure of 64.32 lakh shares to 63.12 lakh shares.

Company Overview: A Snapshot of B R Goyal Infrastructure’s Business

Founded in 2005, B R Goyal Infrastructure Limited is a versatile infrastructure services provider with a significant footprint across India.

The company offers a wide range of services, primarily in the engineering, procurement, and construction (EPC) sector, catering to government departments and other organizations across various industries.

Core Areas of Operations:

1. Roads and Highways: The company specializes in building and maintaining roads, highways, and expressways, which form a critical part of India’s infrastructure development. B R Goyal Infrastructure has undertaken numerous highway construction projects for government bodies and private contractors across various states.
2. Commercial Complexes and Industrial Parks: The company is involved in constructing commercial complexes, including office buildings and retail spaces, as well as industrial parks that support business and manufacturing activities.
3. Residential Housing Projects: In line with India’s growing urbanization, B R Goyal Infrastructure also engages in the construction of residential buildings and complexes, helping meet the country’s increasing demand for affordable housing.
4. Wind Power Generation: The company has diversified into renewable energy, particularly in wind power generation, contributing to the nation’s goals for clean energy production.
5. Ready-Mix Concrete (RMC): B R Goyal Infrastructure operates in the ready-mix concrete sector, producing and supplying high-quality concrete for use in construction projects across the country.
6. Toll Collection Contracts (TCC): The company also participates in toll collection contracts, offering its expertise in the management and operational aspects of toll plazas along highways and expressways.

Geographic Presence and Project Portfolio

B R Goyal Infrastructure operates in a wide array of states across India, including Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram, and Manipur.

The company has successfully executed projects in diverse geographic regions, giving it a broad operational base and resilience in adapting to local requirements.

As of September 2024, B R Goyal Infrastructure boasted an impressive order book valued at ₹873.4 crore, which reflects the robust demand for its services. Notable projects include:

• 15 road and highway projects, worth ₹667.5 crore
• 9 building projects, valued at ₹173.5 crore

This diversified portfolio of ongoing projects indicates the company’s strong growth potential and ability to execute large-scale infrastructure projects efficiently.

Financial Performance and Growth Potential

B R Goyal Infrastructure has demonstrated solid financial performance over the years, bolstered by its consistent project execution and strategic diversification.

The company’s growth is further supported by India’s increasing demand for infrastructure development, particularly in roads, highways, and residential housing, all of which remain central to the government’s national development plans.

As the company expands its service offerings and takes on more large-scale projects, it is well-positioned to capitalize on the rising demand for infrastructure services, making it an attractive proposition for investors seeking long-term growth in the sector.

Final Remarks: Why Consider Investing in B R Goyal Infrastructure?

B R Goyal Infrastructure’s IPO provides investors with an opportunity to gain exposure to a well-established infrastructure company with a proven track record of successful projects.

The company’s strong order book, diversified service offerings, and geographic presence across India make it a solid contender in the country’s burgeoning infrastructure sector.

As the IPO opens for subscription on January 7, 2025, investors have a unique chance to be part of the company’s growth story.

With a price band of ₹128 to ₹135 per share, this public offering is designed to cater to retail investors, institutional investors, and HNIs alike, offering them a potential avenue for capital appreciation as the company continues to expand its operations and capitalizes on India’s infrastructure boom.

For those looking to invest in India’s infrastructure future, B R Goyal Infrastructure represents a promising opportunity with a comprehensive project portfolio, a strong order book, and strategic growth plans in place.