B.R. Goyal Infrastructure Ltd is preparing to launch its initial public offering (IPO) from January 7 to January 9, 2025, aiming to raise approximately ₹85.21 crores. The IPO will consist of up to 63,12,000 equity shares with a face value of ₹10 each, priced within a band of ₹128 to ₹135 per share. As a key player in the infrastructure sector, B.R. Goyal specializes in the construction and development of various infrastructure projects, positioning itself to benefit from the growing demand for such services in India.
₹10
₹135
₹135.75
Expert Opinions
Market sentiment for the B.R. Goyal IPO is cautiously optimistic, driven by the company’s established presence in the infrastructure sector and its comprehensive EPC services. Company strengths include a diversified portfolio that encompasses road construction, commercial complexes, and industrial parks, primarily catering to government contracts, which provide a stable revenue stream.
However, risks and challenges involve potential fluctuations in raw material prices and competition from other players in the infrastructure space, which could impact margins. Valuation analysis shows an EPS of ₹12.58 for FY2024, with a P/E ratio of 10.17–10.73 based on the IPO price, indicating an attractive valuation relative to industry peers. From a long-term investment perspective, B.R. Goyal Infrastructure is well-positioned to benefit from ongoing government initiatives aimed at infrastructure development.
Investor Considerations
Company performance and fundamentals are reflected in B.R. Goyal Infrastructure’s net asset value (NAV) of ₹145.66 per share, highlighting its strong growth potential in the competitive infrastructure sector. The sector outlook remains robust, driven by increasing government investments in infrastructure development, which bodes well for companies like B.R. Goyal that focus on construction and project management.
IPO valuation is supported by a projected return on net worth (RoNW) of 18.91%, indicating strong profitability, and an estimated NAV of ₹145.66 per share, offering a reasonable entry point with a margin of safety for investors. Growth prospects are promising as the company plans to expand its project portfolio and enhance operational efficiencies. However, potential risk factors include fluctuations in raw material costs and competition from other infrastructure players. A long-term investment horizon is advisable as B.R. Goyal aims to leverage the expanding infrastructure market while navigating inherent industry challenges effectively.
| Date | GMP | Trend |
|---|---|---|
| 13 Jan 2025 16.18 | ₹10 | Down |
| 12 Jan 2025 16.34 | ₹20 | Down |
| 11 Jan 2025 12.37 | ₹30 | Down |
| 10 Jan 2025 11.05 | ₹50 | --- |
| 09 Jan 2025 19.11 | ₹50 | Up |
| 08 Jan 2025 10.57 | ₹45 | --- |
| 07 Jan 2025 10.44 | ₹45 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting B.R. Goyal’s listing performance. While the GMP of ₹10 predicted a premium of 7.41% over the issue price, the stock delivered only a minimal gain of 0.56%. With a prediction error of 6.38%, the GMP substantially overestimated the magnitude of gains, though it correctly predicted the positive listing direction, demonstrating its limitations as a reliable price predictor in this case.
B.R. Goyal IPO Current GMP is ₹10.
B.R. Goyal IPO Expected Returns is 7.41%.
B.R. Goyal IPO estimated listing price is ₹145.