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GR Infra to float InvIT by 2022, eyes enterprise value of Rs 15k cr
Real Estate

GR Infra to float InvIT by 2022, eyes enterprise value of Rs 15k cr

GR Infraprojects Limited (GRIL), an integrated road engineering, procurement and construction (EPC) firm, aims to float its Infrastructure Investment Trust (InvIT) by early next year, many people aware of the advancement said, in a proposal to tap long-term institutional investors in Indian infrastructure assets.

With the addition of approximately 14 assets in its kitty, the InvIT may have an enterprise cost of Rs 15,000 crore, the people informed.

The firm has hired Avendus Capital to assist in launching this private InvIT.

GR Infra is in discussions with multiple pension funds, sovereign funds to draw 1-2 partners for the InvIT. They are open to marketing even a controlling stake in the InvIT.

It expects to get an equity value of approximately Rs 3,700 crore for the assets. Initially, seven operational assets will be obtained under the InvIT.

The remaining under-construction assets may be added according to investor interest, later on, the person added.

As of March 31, GRIL's order book reached Rs 19,026 crore and included 16 EPC projects, 10 hybrid annuity mode (HAM) projects and three other projects. Revenue from operations surged at a CAGR of 21.9% to Rs 7,844 crore in FY21 from Rs 5,282 crore in FY19 while profit for the year surged at a CAGR of 15.3% to Rs 953 crore in FY21 from Rs 716 crore in FY19.

As of March 31, the firm's total borrowings were Rs 4,495 crore. Last month, the firm acquired NHAI projects of Rs 927 crore in Punjab for the six-lane Amritsar-Bathinda greenfield section development of NH-7S4A. Its recent EPC projects include Delhi-Meerut Expressway construction from Dasna to Meerut in Uttar Pradesh, four-laning of Parwanoo-Solan section of NH-22 in Himachal Pradesh, and advancement of Raisinghnagar-Poogal section in Rajasthan.

The Gurugram-based GRIL has been working to monetise its assets for the past three years

In 2019, it was in talks with Canadian pension fund Caisse de depot et placement du Quebec (CDPQ) and Edelweiss Infrastructure-backed Sekura Roads to market seven HAM projects at Rs 4,000 crore enterprise value. It had hired HDFC Bank to manage the sale process.

Image Source

Also read: Shrem group plans to raise Rs 600 cr by diluting 15% stake in InVIT

GR Infraprojects Limited (GRIL), an integrated road engineering, procurement and construction (EPC) firm, aims to float its Infrastructure Investment Trust (InvIT) by early next year, many people aware of the advancement said, in a proposal to tap long-term institutional investors in Indian infrastructure assets. With the addition of approximately 14 assets in its kitty, the InvIT may have an enterprise cost of Rs 15,000 crore, the people informed. The firm has hired Avendus Capital to assist in launching this private InvIT. GR Infra is in discussions with multiple pension funds, sovereign funds to draw 1-2 partners for the InvIT. They are open to marketing even a controlling stake in the InvIT. It expects to get an equity value of approximately Rs 3,700 crore for the assets. Initially, seven operational assets will be obtained under the InvIT. The remaining under-construction assets may be added according to investor interest, later on, the person added. As of March 31, GRIL's order book reached Rs 19,026 crore and included 16 EPC projects, 10 hybrid annuity mode (HAM) projects and three other projects. Revenue from operations surged at a CAGR of 21.9% to Rs 7,844 crore in FY21 from Rs 5,282 crore in FY19 while profit for the year surged at a CAGR of 15.3% to Rs 953 crore in FY21 from Rs 716 crore in FY19. As of March 31, the firm's total borrowings were Rs 4,495 crore. Last month, the firm acquired NHAI projects of Rs 927 crore in Punjab for the six-lane Amritsar-Bathinda greenfield section development of NH-7S4A. Its recent EPC projects include Delhi-Meerut Expressway construction from Dasna to Meerut in Uttar Pradesh, four-laning of Parwanoo-Solan section of NH-22 in Himachal Pradesh, and advancement of Raisinghnagar-Poogal section in Rajasthan. The Gurugram-based GRIL has been working to monetise its assets for the past three years In 2019, it was in talks with Canadian pension fund Caisse de depot et placement du Quebec (CDPQ) and Edelweiss Infrastructure-backed Sekura Roads to market seven HAM projects at Rs 4,000 crore enterprise value. It had hired HDFC Bank to manage the sale process. Image Source Also read: Shrem group plans to raise Rs 600 cr by diluting 15% stake in InVIT

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