GR Infra's InvIT likely next year, eyes $2 billion enterprise value

GR Infraprojects Ltd (GRIL), an integrated road engineering, procurement and construction (EPC) company, plans to float its Infrastructure Investment Trust (InvIT) by early next year, multiple people aware of the development said, in a bid to tap long-term institutional investors in Indian infrastructure assets.

With the addition of about 14 assets in its kitty, the InvIT may have an enterprise value of Rs 15,000 crore ($2 billion), the people said.

The company has hired Avendus Capital to help launch this private InvIT.

“GR Infra is in talks with several pension funds, sovereign funds to bring 1-2 partners for the InvIT. They are open to selling even a controlling stake in the InvIT,” one person said.

It hopes to fetch an equity value of about Rs 3,700 crore ($400-500 million) for the assets.

Initially, seven operational assets will be brought under the InvIT.

The remaining under-construction assets may be added as per investor interest later on, the person added.

A company spokesperson did not respond to ET’s email seeking comment till press time Sunday.

As of March 31, GRIL’s order book was at Rs 19,026 crore and comprised 16 EPC projects, 10 hybrid annuity mode (HAM) projects and three other projects.

Revenue from operations grew at a CAGR of 21.9% to Rs 7,844 crore in FY21 from Rs 5,282 crore in FY19 while profit for the year increased at a CAGR of 15.3% to Rs 953 crore in FY21 from Rs 716 crore in FY19.

As of March 31, the company’s total borrowings were Rs 4,495 crore.

Last month, the company received NHAI projects worth Rs 927 crore in Punjab for the development of the six-lane Amritsar-Bathinda greenfield section of NH-7S4A.

Its recently completed EPC projects include construction of the Delhi-Meerut Expressway from Dasna to Meerut in Uttar Pradesh, four-laning of Parwanoo-Solan section of NH-22 in Himachal Pradesh, and up-gradation of Raisinghnagar-Poogal section in Rajasthan.

The Gurugram-based GRIL has been trying to monetise its assets for the last three years.

In 2019, it was in discussions with Canadian pension fund Caisse de depot et placement du Quebec (CDPQ) and Edelweiss Infrastructure-backed Sekura Roads to sell seven HAM projects at an enterprise value of Rs 4,000 crore. It had hired HDFC Bank to run the sale process. However, the talks did not go through.


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