BR Goyal Infrastructure Limited is an infrastructure and construction company with over 35 years of experience. It is in the business of constructing roads and highways, urban developments, bridges, buildings, and other heavy-duty construction projects.
The company offers a wide range of services within construction, including civil construction and engineering services. It is an expert in Engineering Procurement Construction (EPC) services and also has its teeth in the construction of Ready Mix Concrete (RMC) manufacturing. Other areas it is diversified into include Wind power generation, Toll Collection Contracts (TCC), and Residential Plotting Projects.
The company currently handles significant projects across India - with 26 ongoing projects -, in states like in the states of Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram, and Manipur. It also recently just entered into a Power Purchase Agreement with Ajmer Vidyut Vitran Nigam Limited, which would last for 20 years starting from March 2005.
- Price Band: ₹128 to ₹135
- Issue Type: Fresh
- Lot Size: 63,12,000 shares
- Allotment Date: January 14, 2025
- Listing Date: January 17, 2025
- Stock Exchange: NSE and BSE
Objectives of the BR Goyal Infrastructure Limited IPO
BR Goyal Infrastructure Limited's purpose for the IPO includes:
- The funding of the company’s capital expenditure requirement
- The financing of the Working Capital Requirement of the Company and
- Funding for expenditure for inorganic growth. This growth is to be achieved via acquisitions & other strategic initiatives.
Also Learn: What is an IPO?
Financial Performance of BR Goyal Infrastructure Limited
The table below summarises the financial performance of BR Goyal Infrastructure Limited
Amount is in ₹ Lakhs
End Period | 31 July 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
Assets | 26,999.85 | 23,948.52 | 19,725.84 | 20,338.54 |
Revenue | 15,686.45 | 59,619.20 | 35,329.74 | 22,863.32 |
Profit After Tax | 194.46 | 2,188.91 | 1,733.51 | 756.09 |
Net Worth | 12,863.48 | 12,666.79 | 10,479.04 | 8,746.91 |
Reserves and Surplus | 11,124.20 | 11,797.15 | 9,609.40 | 7,877.27 |
Total Borrowing | 6,411.09 | 4,947.28 | 4,163.54 | 5,340.28 |
Industry Outlook
The forecast for the construction sector in india is positive, with all indices showing it will be the third largest construction market in the world in 2025, bested only by China and the US, who are second and first largest markets, respectively. There are so many factors as to why, including the fact that there is a massive housing shortage in major cities around the country. Ths shortage creates a demand, one that the Government and the private sector are determined to fill.
Government programs like the PM Awas Yojana with the goal of facilitating the construction of millions of rural houses across India, and the Delhi-Mumbai Industrial Corridor and renewable energy initiatives are all indications of the growth of the Indian’s construction industry. The government allocated Rs 11.11 lakh crore (USD 134 billion) for infrastructure development in the 2024-2025 budget. Consequently, the country’s construction market is expected to reach $1.4 trillion by 2025.
Strengths and Risks of the BR Goyal Infrastructure Ltd. IPO
The company BR Goyal has strengths that should serve as an incentive for potential investors. Some of these include;
Weakness
The major weaknesses that might be attributed to BR Goyal Infrastructure Ltd include:
- Fluctuating Cost of raw materials: Cost of Cement, steel and other raw materials needed for construction aren’t stable. This might adversely affect projects.
- Competition: BR Goyal Infrastructure Ltd will be competing against top construction firms, with broader diversification and more rounded expertise in the Indian Stock Exchange.
- Thin Key-Client Dependency: The company relies on a thin client base. Although it is doing well, it opens the company to significant setbacks if any of its clients choose to discontinue the relationship.
Overview:
BR Goyal Infrastructure Ltd IPO may be a good opportunity for investors with a taste for long-term investment. It also has the potential to yield quick profit based on the company revenue increasing from ₹22,863.32 lakhs in FY2022 to ₹59,619.20 lakhs in FY2024 and a healthy net worth of ₹12,863.48 lakhs as of July 2024.
The company has shown consistency in growth despite the weakness of the Indian Construction sector. Priced at ₹128-₹135, the IPO looks good for investors.
Conclusion:
BR Goyal Infrastructure Ltd IPO is an attractive investment opportunity for investors who are looking to diver into the Construction Industry. The IPO is both promising as it is exciting, considering the largely positive prospect for the construction sector in India.
For more information; Visit to
1. https://www.ibef.org/industry/infrastructure-presentation