BR Goyal Infrastructure shares hit 5% upper circuit after flat listing on BSE SME

Shares of small and medium enterprise (SME) BR Goyal Infrastructure Ltd made a lacklustre trading debut on Tuesday, January 14, with the stock listing flat compared to its issue price.

BR Goyal Infrastructure shares opened the session at ₹135.75 apiece on the BSE SME platform, up 0.5% compared to the initial public offering (IPO) price of ₹135 per share. However, within minutes of opening of the trade, the share price advanced 5% to hit the upper circuit limit at ₹142.5 per piece on the BSE.

Within the initial 10 minutes of trade, as many as 18.13 lakh shares changed hands on the stock exchange. The total trading value stood at ₹24.92 crore. The company’s market capitalisation stood at ₹339.5 crore.

As the minimum bid quantity to apply for the BR Goyal Infrastructure IPO was 1,000 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of just ₹750 per lot (₹0.75 x 1,000) as soon as the stock started trading in the secondary market.

BR Goyal Infrastructure IPO details

The Indore-based construction company’s initial public offering was open for bidding from January 7 to January 9. The issue had received strong demand from investors across categories. It closed with an oversubscription of 118 times, with bids for 49.74 crore shares against the net issue size of 42.1 lakh shares.

The retail investors’ quota was subscribed 88 times, while the Non-Institutional Investors’ (NIIs) portion was booked 257 times. The qualified institutional buyers’ (QIBs) segment was overbid by nearly 70 times and the employees’ category was booked 1.11 times.

The ₹85.21-crore BR Goyal Infrastructure IPO was solely a fresh issuance of 63.12 lakh equity shares, with no offer-for-sale (OFS) component. Price band for the IPO was ₹128 to ₹135 per share and the lot size was 1,000 shares for the retail investors.

Ahead of the launch of the issue, BR Goyal Infrastructure had also raised ₹24.11 crore from anchor investors.

BR Goyal Infrastructure earlier said that it planned to use ₹8.02 crore from the total IPO proceeds to meet capital expenditure related to the acquisition of vehicles. It looks to continue investing in a fleet of vehicles to back its EPC (engineering, procurement and construction) services.

The company would also utilise ₹42 crore of the IPO proceeds to fund working capital requirements. It has proposed to utilise the additional working capital to expand business activities.

Using the funds, BR Goyal Infrastructure would also finance expenditure for inorganic growth through acquisitions and other strategic initiatives and to meet general corporate purposes.

BR Goyal Infrastructure is in the business of construction and development of infrastructure projects such as roads, highways, bridges and buildings. It has ongoing projects in Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Mizoram and Manipur.

The company offers EPC services for third parties – mainly for government departments, primarily in the roads and highways, commercial complex, industrial parks, housing projects and HAM (hybrid annuity model) projects. It is also engaged in wind power generation, manufacturing of ready-mix concrete and toll collection contracts.