India: Motilal Oswal PE-backed GR Infra seeks $2b valuation in IPO, to file DRHP

Photographer: Prashanth Vishwanathan/Bloomberg

GR Infraprojects Ltd, an infrastructure developer backed by Motilal Oswal Private Equity, is seeking a valuation of close to $2 billion as it looks to file IPO documents with the markets regulator, three people aware of the development said.

The Delhi-based infrastructure firm is involved in engineering, procurement and construction (EPC) services for highways, flyovers, bridges, buildings and air-field development.

“GR Infraprojects is looking to file its draft red herring prospectus (DRHP) in the month of April. The proposed IPO is expected to be at least Rs1,000 crore in size, with a mix of primary capital raise and a secondary share sale including sale of shares by Motilal Oswal Private Equity (MOPE). The PE fund owns a 10% stake in the company,” said one of the people cited above, requesting anonymity as he is not authorized to speak to reporters.

MOPE, through its India Business Excellence Fund, had invested in GR Infraprojects in 2011.

According to a second person cited above, who too spoke on the condition of anonymity, the company is looking to go public at a valuation of around Rs12,000 crore.

“There has been a significant change in the valuation that the company is now looking at, as compared to the valuation that there were looking for when they had previously filed their DRHP in 2016. They have sold a couple of road assets in the time since and they have successfully won several major orders that has significantly grown its order book and thus this valuation,” he said.

In April 2017, GR Infraprojects announced that it was selling a majority stake in two of its build, operate and transfer road assets to IDFC Alternatives’ India Infrastructure Fund II.

GR Infraprojects had earlier filed a DRHP in September 2016. Subsequently, the company had received markets regulator Securities and Exchange Board of India’s (Sebi’s) approval for its IPO.

“At this stage we would be able to only let you know that we are under the process of filing of DRHP. Any further information will be shared at a later stage only,” Vinod Aggarwal, managing director of GR Infraprojects, said response to Mint’s queries.

MOPE declined to comment on the development.

GR Infraprojects Ltd reported a revenue of Rs3,205 crore in the financial year 2016-17, as compared to a revenue of Rs1,895.9 crore in the previous fiscal, according to the company’s website. GR Infraproject’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to Rs699.5 crore in 2016-17, as against an Ebitda of Rs235.4 crore in the previous year.

As of 31 March, the company’s order book stood at Rs7,982 crore, data from its website shows. GR Infraprojects is involved in infrastructure projects across 12 states and has an employee strength of over 4,700. The company has completed over 85 EPC projects since 2006.

For MOPE this will be yet another exit from a portfolio company through the IPO route.

Since the IPO markets opened up in 2015, MOPE has seen several of its portfolio companies such as Power Mech Projects Ltd, Dixon Technologies (India) Ltd, Parag Milk Foods Ltd, Indian Energy Exchange Ltd and MAS Financial Ltd have gone public.

This story was first published on livemint.com

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.