B.R. Goyal IPO : GMP, Date, Price & Details

B.R. Goyal IPO-Complete Overview

B.R. Goyal IPO under the SME IPO category is a book-built issue of Rs.85.21 Cr (63.12 lac Shares) by B.R. Goyal Infrastructure Limited established in 2005. It is involved in the construction of infrastructure projects such as roads, highways, bridges, and buildings. 

The company has integrated EPC and construction services with a strong design and engineering team and RMC unit. The RMC unit at Indore possesses an annual installed capacity of 1.80 lac cubic meters. Although as of September 30, 2024, the company operates with over 199 construction equipment and vehicles.

It stepped into renewable energy by commissioning its 1.25 MW wind power turbine at Jaisalmer, Rajasthan, in 2005. 

Currently executing projects in Maharashtra, Gujarat, Mizoram, Manipur, and Uttar Pradesh after extending operations in Madhya Pradesh with projects executed by the company in Madhya Pradesh.

Five Divisions of the Business:

Engineering Procurement Construction (EPC): Highways, Buildings, Roads, and other Civil Construction work. 

Ready Mix Concrete (RMC) Manufacturing: RMC is made by using advanced technology under computer-controlled operation and is very friendly with the environment at the site-sensitive areas. 

Wind Power Generation: The company has its own 1.25 MW windmill in Jaisalmer that generates revenue and units such as July 2024 (13.35 Rs., 3.97 lac KWh) March 2024 (49.38 Rs., 14.70 lac KWh) March 2023 (33.57 Rs., 10.64 lac KWh) March 2022 (45.49 Rs., 13.85 lac KWh). 

Toll Collection Contract (TCC): TCC Projects are spread across Maharashtra, Gujarat, Punjab, Mizoram, Haryana, Manipur, Madhya Pradesh, and Uttar Pradesh. 

Residential Plotting Projects: Recently launched 2 projects by the company referred to as BRG Hill View - II and BRG Hill View - II Extension, located at village Sanawadiya, Indore.

B.R. Goyal IPO Overview

This B.R. Goyal Infrastructure IPO date is 07 January, and its ‘initial public offering’ will end on 09 January 2025. 

The Rs.85.21 crore new SME IPO comprises a wholly fresh issue of 63.12 lac Shares.

This upcoming IPO date is on 07 January 2025. The B.R. Goyal IPO Price is Rs.128 to Rs.135 for each Share. 

The expected IPO listing date is Tuesday, 14 January 2025, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Lac)

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

Business-wise Revenue Breakdown  

(Amount in lac)

(Source: RHP)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the company's capital expenditure needs.

• Funding the company's working capital needs.

• Financing expenditures for general corporate purposes, acquisitions, and other strategic efforts that promote inorganic growth. 

Peers of B.R. Goyal Infrastructure Ltd.

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The B.R. IPO share price is Rs.128 to Rs.135 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.25.16 from the last year, the resulting P/E ratio is 5.36x.

Considering the weighted EPS of Rs.20.65 for the last three years, the P/E ratio is 6.53x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 20.75.

IPO's Strengths

• Construction development in general pertains to the sectors of roads and highways.

• Efficient business model.

• Future Project Portfolio increases a strong order book.

• Enabling technology for project management.

• Project management.

• Equipment ownership.

• Workforce Strong.

• Management team with experience. 

IPO’s Weaknesses

• Limited Financial Resource: The company runs with limited financial means which could hinder their expansion or market competition.

• Negative cash flows: Negative cash flows from the operational and investment activities have been experienced by the company over the last few financial years, which may adversely affect the future growth and financial stability of the company.

• Limited Experience in the Sales of Silver Ornaments: The company has some experience, but not much, in dealing with silver ornaments. This may severely limit its potential in the jewels market.

• Competition impacting pricing power: As more and more new competitors come up in the market, the price could reduce due to less pricing power for the company, thereby affecting profits.

• Focus on a Single Industry: Most of the company's future business operations rely heavily on the textile industry with negligible dealings in silver ornaments. This lack of diversification could be dangerous considering the market conditions for textiles worsen.

B.R. Goyal IPO GMP Today

B.R. Goyal IPO GMP is Rs.21 as of 04 January 2025. With the price of Rs.135, the estimated B.R. Goyal Ltd. IPO listing price is Rs.156 while writing this information.

IPO Timetable (Tentative)

The IPO opening date is January 07, with allotment on January 10, refund initiation on January 13, and listing on January 14, 2025.

B.R. Goyal IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 63,12,000 Shares (Rs.85.21 Cr).

B.R. Goyal Infrastructure Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.135000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.270000.

IPO Reservation (% of Net Issue)

Promoters And Management of B.R. Goyal Ltd.

• Mr. Brij Kishore Goyal

• Mr. Balkrishna Goyal

• Mr. Gopal Goyal

• Mr. Rajendra Kumar Goyal

• Mr. Yash Goyal

• Mr. Uppal Goyal 

• M/S. B.R. Goyal Holdings Private Limited.
  
  

IPO Lead Managers

Beeline Capital Advisors Pvt Ltd.

Dividend Policy

No dividends have been paid by the company in the last three FYs.

Conclusion

This B.R. Goyal IPO makes way for investing in an infrastructure company, with diverse operations and strong construction, RMC, and wind power generation presence. The IPO price seems undervalued by the industry standards, thus making it attractive for investment; however, such investment must be done while keeping in mind the risks involved such as negative cash flow and financial constraints.