GR Infraprojects Shares Surge 4% on Nagpur Project Win

Shares of GR Infraprojects rose over 4% on Tuesday, September 24, after the infrastructure company emerged as the lowest bidder for a project under the second phase of the Nagpur Metro Rail Project (NMRP).

GR Infraprojects’ shares were trading over 4% higher at ₹1,733.95 at 9:15 am IST on NSE. The stock has rallied 53% so far this year, outperforming Nifty's returns of 19%. The counter has risen 39% in the last 12 months.

Compared with Nifty, which rose 31% in that period, Nifty Realty rose 74%. The company's stock debuted on bourses in July 2021, when it came with a whopping 105 per cent premium. It has corrected, of course.

The company also bagged a ₹903.5-crore contract for designing and constructing a 17.624-km elevated metro viaduct, along with a double-decker section with a 1.14 km-long underpass for vehicles.

GR Infraprojects in an exchange filing said, "we are pleased to inform you that our Company has emerged as Lowest bidder in Financial Bid Opening dated 23rd September 2024 for the following tender invited by Maharashtra Metro Rail Corporation Limited, Nagpur (Maha Metro).

The work order to construct the Nagpur Metro Phase 2's reach-1A and railway spans of 79 meters and 100 meters has been received from Maharashtra Metro Rail Corporation Ltd (Maha Metro).

Under the terms of order, GR Infraprojects will be assigned the design and construction of an elevated metro viaduct of length 17.624 km between Ch. 21256.814 to Ch. 38881.7 including Railway spans of length 79m & 100m and a 6-lane Double decker portion with Vehicular Underpass (VUP) from Ch. 25755.211 to Ch. 26895.211 for a total length of 1.14 km in Reach-1A of NMRP Phase-2.

EPC mode shall be adopted for executing the project, and the completion period shall be 30 months. The financial bid opening was held on September 23, 2024. GR Infraprojects emerged successful to bag the contract with competitive Bid.

One of the recent exit strategies of GR Infraprojects is the sale of its wholly-owned subsidiary, GR Aligarh Kanpur Highway Private Limited (GAKHPL), to Bharat Highways InvIT. The transaction has been concluded on 17 September 2024 at a consideration of ₹98.6 crore.

GAKHPL accounts for 1.99% of the consolidated income of GR Infraprojects and 2.10% of its consolidated net worth as of March 31, 2024. The total market capitalisation of GR Infraprojects stands at ₹16,629.06 crores as per BSE. The stock has its 52-week high at ₹1,859.95 and its 52-week low is at ₹1,025 apiece.

Bharat Highways InvIT, the acquirer, was an infrastructure investment trust registered with SEBI in August 2022. The transaction was regarded as a related party transaction and also was undertaken at arm's length. Post transferring, GAKHPL is no more a subsidiary of GR Infraprojects Limited .

GR Infraprojects Ltd is a leading integrated Engineering, Procurement, and Construction (EPC) company with a specialisation in road infrastructure which was established in 1995. It has a sound track record of designing and constructing over 100 road projects spread over 16 states in India.

Its core business forms about 90% of its earnings and comprises EPC, BOT, and Hybrid Annuity Model works under road sector mainly besides undertaking railway, metro, airport runway, and OFC projects among others.

Diversification strategy has driven the company into the Power Transmission sector. G R Infraprojects currently operates a portfolio of 10 operational assets, which includes one NHAI annuity project, one state HAM project and eight other NHAI HAM projects.