BR Goyal IPO: SME Public Issue Subscribed 5x On Day 2, GMP Hints Strong Listing; Check Key Dates & More

The initial public offering (IPO) of BR Goyal, an infrastructure and construction company, opened for subscription on January 7, 2025, and will close on January 9. With a total issue size of Rs 85 crore, this Rs 128 to Rs 135 price band SME IPO has garnered strong attention from investors. The IPO, which is entirely a fresh issue of over 63 lakh shares, has already been fully subscribed, with the grey market indicating the stock could be listed at a premium of over 30%.

Subscription Status

As of the second day of subscription, January 8, the BR Goyal IPO had already been subscribed 5.14 times, as of 1:45 pm. The retail investor category has seen overwhelming demand, with the retail portion booked 8.95 times. However, the Non-Institutional Investors (NII) category has been subscribed 3.32 times, while the Qualified Institutional Buyers (QIB) segment saw a mild subscription of 47%.

Grey Market Premium (GMP)

According to market insiders, BR Goyal shares are commanding a healthy grey market premium (GMP) of Rs 45. This indicates that the stock could be listed at a 33% premium above the upper price band of Rs 135, making it an attractive proposition for investors looking for short-term gains upon listing.

A 30%+ GMP is a strong indicator that investors expect the company's shares to debut on the BSE SME platform with substantial gains. This premium shows positive market sentiment and suggests a favourable listing for the company.

BR Goyal IPO Details

IPO Size and Price Band: The BR Goyal IPO aims to raise Rs 85.21 crore, with a price band of Rs 128 to Rs 135 per share.
Lot Size: One lot of the IPO consists of 1,000 shares, and the minimum investment for retail investors stands at Rs 1,28,000 (for one lot).
Reservation: The issue includes 19% reserved for QIBs, 33% for retail investors, and 14% for NIIs.
Allotment and Listing Dates: The allotment of shares will be finalized on January 10, and successful applicants will see the shares credited to their demat accounts on January 13. The listing is scheduled for January 14 on the BSE SME platform.
Lead Manager and Registrar: Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the IPO, and Link Intime India Private Ltd is the registrar for the issue.

Company Overview

BR Goyal is a well-established player in the infrastructure and construction sector. The company has been involved in the development of critical infrastructure projects such as roads, highways, bridges, and buildings across various states in India, including Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram, and Manipur.

The company offers a range of services, including Engineering, Procurement, and Construction (EPC) services, primarily for government departments. BR Goyal focuses on infrastructure projects in sectors like roads, highways, commercial complexes, industrial parks, and housing projects, especially under the Hybrid Annuity Mode (HAM) model. Apart from its core infrastructure business, the company is also involved in wind power generation, ready-mix concrete manufacturing, and toll collection contracts.

The company reported a profit after tax (PAT) of Rs 7.56 crore for FY22, which grew to Rs 17.34 crore in FY23, and Rs 21.90 crore in FY24. This financial track record, coupled with its strong order book from government contracts, positions BR Goyal as a promising candidate.

Use of IPO Proceeds

The funds raised from the IPO will be primarily used to meet the company's working capital requirements and to fund capital expenditures. As BR Goyal continues to expand its operations and take on more infrastructure projects, the infusion of fresh capital will help support its growth initiatives, ensuring that it can continue to execute large-scale infrastructure projects.