GR Infraprojects Share Price Surges 5% after Securing ₹1,886 Crore Order from MSRDC

GR Infraprojects share price saw a rise of up to 4.74% on Wednesday, October 14, 2024, reaching an intraday high of ₹1,699 per share. This surge followed the company’s announcement of securing a ₹1,885.63 crore contract from the Maharashtra State Road Development Corporation Limited.

By 10:18 AM IST, the stock had pared some gains, trading 1.56% higher at ₹1,647.40 per share, while the Sensex remained relatively flat at 81,836.21. GR Infraprojects' total market capitalization stood at ₹15,956.62 crore, with its 52-week high and low at ₹1,859.95 and ₹1,025, respectively.

In an official statement, the company expressed its receipt of a Letter of Acceptance dated October 14, 2024, for the construction of a section of the Pune Ring Road under an EPC contract, covering 9.34 kilometers in Pune district.

Under the terms of order, GR Infraprojects will be responsible Construction of Access Controlled Pune Ring Road in Pune District Package PRR W5 from village Kalyan/Rathwade Km. 55+500 to village Shivare/Kusgaon Phase Km. 64+841 (Length – 9.341 Km.) Tq. Haveli / Bhor in the State of Maharashtra on EPC Mode. The project, meanwhile, is expected to be completed in 36 months, the company said.

Just last week, GR Infraprojects secured another contract worth ₹903.5 crore from Maharashtra Metro Rail Corporation Ltd for the design and construction of a 17.6-kilometer elevated metro viaduct in Nagpur, which includes a six-lane double-decker section and special railway spans.

The project spans 17.6 kilometres and includes special railway spans of 79 and 100 metres each. The contract also covers a 1.14-kilometre, six-lane double-decker portion featuring a vehicular underpass (VUP) as part of Reach-1A of the Nagpur Metro Rail Project’s Phase-2.

Mutual funds hold a 15.56% stake in the company, with notable investors including SBI Large & Midcap Fund (6.79%) and UTI Large & Midcap Fund (1.25%). Check Mutual Fund SIP Return Calculator

Established in 1995, GR Infraprojects is a prominent EPC firm with a strong focus on road infrastructure. The company's core operations, contributing around 90% of its revenue, include EPC, BOT, and HAM projects. GR Infraprojects has diversified into sectors such as railways, metros, airport runways, and power transmission.

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The company's core business, which constitutes approximately 90% of its revenue, encompasses EPC, Build-Operate-Transfer (BOT), and Hybrid Annuity Model (HAM) projects primarily in the road sector. In addition to road construction, GR Infraprojects is also involved in railway, metro, airport runway, and Optical Fibre Cable (OFC) projects.

The company's diversification strategy has led it into the Power Transmission sector. GR Infraprojects currently manages a portfolio of 10 operational assets, including one National Highways Authority of India (NHAI) annuity project, one state HAM project, and eight additional NHAI HAM projects.

As of March 31, 2024, the company’s order book stood at ₹16,780.61 crore, having secured projects across various sectors during FY24. With India’s infrastructure sector projected to grow significantly, driven by the government's National Infrastructure Pipeline (NIP) initiative, GR Infraprojects is well-positioned for future opportunities.