BR Goyal Infrastructure shares to debut BSE SME platform. Here's what GMP indicates

BR Goyal Infrastructure shares will debut on the BSE SME platform on Tuesday and if GMP trends are anything to go by, the stock is expected to see a marginal premium listing.

The GMP of BR Goyal Infrastructure is on the decline for the past few days and is currently at Rs 9, which is a 7% premium over the issue price.

However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

BR Goyal Infrastructure raised around Rs 85 crore through its IPO, which was subscribed by a decent 118 times. The non-institutional investors led the bidding as the category subscription stood at 257 times.

The proceeds from the IPO will be used for capital expenditure purposes, working capital requirements, inorganic growth through acquisitions, and other corporate uses.

BR Goyal Infrastructure constructs and develops various infrastructure projects mainly roads, highways, bridges and buildings. The company also undertakes EPC services for third parties.

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Under the EPC services, the company executes road construction projects as EPC contractors and construction services providers. The scope of its services in this segment includes design and engineering of the project, procurement of raw materials, project execution at site with overall project management up to the commissioning of these projects.

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In addition, the company also undertakes repair and maintenance of projects in accordance with its contractual arrangements.

BR Goyal has also forayed into the business of wind energy and power Generation by installing a 1.25 mw wind power turbine in Rajasthan, which was commissioned in 2005. The company has entered into a power purchase agreement with Ajmer Vidyut Vitran Nigam for a period of 20 years starting from March 2005 at a predetermined tariff.

The company seeks growth by investing in a variety of systematically identified businesses, making it a well-diversified conglomerate with interest in a range of projects such as asphalt road construction, concrete road construction, buildings, bridges and culverts and all other civil works related to development of infrastructure.