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B.R.Goyal Infrastructure Ltd IPO
Status: Closed
Overview
IPO date
07 Jan 2025 to 09 Jan 2025
Face value
₹ 10 per share
Price
₹ 128 to ₹135 per share
Issue Size
6,312,000 shares
(aggregating up to ₹ 85.21 Cr)
(aggregating up to ₹ 85.21 Cr)
Allotment Date
10 Jan 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Infrastructure Developers & Operators
Objectives of B.R.Goyal Infrastructure Ltd IPO
Public issue of 63,12,000 equity shares of face value of Rs. 10/- each of B.R.Goyal Infrastructure Limited ("BRGIL" or "the Company") for cash at a price of Rs. 135/- per equity share (Including a Share Premium of Rs. 125/- per Equity Share) ("Issue price") aggregating to Rs. 85.21 crores, of which 3,16,000 equity shares of face value of Rs. 10/- each at a price of
Rs. 135/- aggregating to Rs. 4.26 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion") and 38,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 135/- per equity share aggregating to Rs. 0.51 crores will be reserved as employee reservation portion (the "Employee Reservation Portion"). The issue less market maker reservation portion and employee reservation portion i.e., issue of 59,58,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 135/- per equity share for cash, aggregating to Rs. 80.43 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.49 % and 25.01 % respectively of the post issue paid up equity share capital of the company.
The Issue Price is Rs. 135 per equity share of face value of Rs. 10 each.
The Issue price is 13.50 times the face value of the equity shares.
Bid can be made for a minimum of 1000 equity shares and in multiples of 1000 equity shares.
B.R.Goyal Infrastructure Ltd IPO Strategy
- Continue focusing on the roads and highways sector.
- Enhancing execution efficiency.
- Selectively expand our geographical footprint.
- Develop relationship with our clients and optimize our client mix.
- Promotion of our brand recognition.
- Diversification of projects beyond the roads and highways sector by leveraging existing capabilities.
About B.R.Goyal Infrastructure Ltd
B. R. Goyal Infrastructure Limited was originally formed as Partnership Firm in the name and style of 'M/s. Balkrishna Ramkaran Goyal' pursuant to a Deed of Partnership dated August 4, 1986. The business of the Partnership Firm was taken over by the Company pursuant to the conversion and ' M/s. Balkrishna Ramkaran Goyal' was thereafter converted from a Partnership Firm to a Private Limited Company in the name and Style of 'B. R. Goyal Infrastructure Private Limited' incorporated on April 1, 2005 issued by Registrar of Companies, Madhya Pradesh and Chhatisgarh. Subsequently, Company was converted into a Public Limited Company and the name was changed to 'B. R. Goyal Infrastructure Limited' vide fresh Certificate of Incorporation dated May 9, 2018 issued by the Registrar of Companies, Gwalior.
The Company engaged in construction and development of infrastructure projects such as roads, highways, bridges and buildings since inception in the State of Madhya Pradesh, Maharashtra, Gujarat, Punjab, Haryana, Uttar Pradesh, Mizoram and Manipur. It carry out EPC services for third parties- majorly for government departments, primarily in roads & highways, commercial complex, industrial parks, housing projects and HAM (Hybrid Annuity Mode) Projects. It is also engaged in wind power generation, manufacturing of Ready-Mix Concrete (RMC) and Toll Collection Contract (TCC).
The Company execute road construction projects as EPC contractors and construction services providers. Also, currently, it is undertaking one HAM Project. For projects that Company deliver on an EPC and construction services basis, their scope of services typically 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.
Over the years, the Company has developed an established EPC and construction business and gradually added facilities to support and
supplement EPC and construction business. It developed in house resources to deliver a project from conceptualization to completion that includes design and engineering team and RMC manufacturing unit with an installed capacity of 1.80 Lakhs cubic meters per annum at Indore in 2008. Besides, it ventured in the business of Wind Energy/Power Generation by installing a 1.25 MW Wind Power Turbine at Jaisalmer, in Rajasthan which commissioned in 2005. It entered into Power Purchase Agreement with Ajmer Vidyut Vitran Nigam Limited for a period of 20 years commencing from March 2005 at a pre-determined tariff.
In 2021-22, B. R Goyal Tollways LLP became a Subsidiary of the Company and BR-DSR Lateri Shamshabad Private Limited became subsidiary of the Company in 2022-23.
The Company is proposing an Initial Public Fresh Issue upto 64,32,000 Equity Shares.
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T&C*
Strengths vs Risks of B.R.Goyal Infrastructure Ltd
Know the pros & cons
Strengths
Established roads and highways sector focused construction developer.- Efficient business model.
- Strong Order Book with growing project portfolio.
- Technology enabled project management capabilities.
- Project management.
- Equipment ownership.
- Strong Workforce.
- Experienced management team.
- Strong Credit Rating.
Risks
- The projects the company operates have been awarded primarily through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations.
- Its EPC business is a major source of the company revenue and the company financial condition would be materially and adversely affected if its fail to obtain new contracts.
- Its business is substantially dependent on the company key customers from whom its derive a significant portion of the company revenues. The loss of any significant clients may have a material and adverse effect on its business and results of operations.
- Delays in the completion of construction of current and future projects could lead to termination of the EPC agreements or cost overruns, which could have an adverse effect on its cash flows, business, results of operations and financial condition.
- Its actual cost in executing an EPC contract may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have a material adverse effect on its results of operations, cash flows and financial condition.
- Due to the nature of its contracts, the company may be subjected to claim and counter-claims to and from the government authorities, any adverse outcome of any such claim or counter claim may have an adverse effect on its profitability.
- Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
- The company depends on forming joint ventures to qualify for the bidding process for and to implement large projects and its inability to enter into or successfully manage such joint ventures could impose additional financial and performance obligations resulting in reduced profits or in some cases, significant losses from the joint venture, which could have a material adverse effect on its business, financial condition and results of operation.
- The lack of formal educational qualifications among its directors presents a potential risk that could affect the business operations and strategic direction of the company.
- The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
- Its business is subject to seasonal and other fluctuations that may affect the company cash flows and business operations.
- Any increase in or occurrence of its contingent liabilities and commitments may adversely affect its financial condition.
- Accuracy in estimation, calculation while bidding the tender is of prime importance.
- Its business is spread across the state of Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram and Manipur and majority of its revenue may be affected by various factors associated with Madhya Pradesh & Maharashtra.
- The Company is required to provide its government clients a certain sum of money as retention money which is released only after the expiry of the defects liability period. Any delay in the release of the retention money may have a material adverse effect on its business, results of operations and financial condition.
- The Company has been made party to a matter filed against an insurance company and the details of the case are not known to it. Hence, the company is not in a position to identify the contingent liability in the matter.
- Shares of the company may face risks of non- listing or delays in the listing process, which could adversely impact investor confidence and future funding opportunities.
- Increases in the prices of construction materials, fuel, labour and equipment, their availability, quality and cost overruns could have an adverse effect on it.
- In the past, the company has incurred additional costs in order to complete some of its projects and have also completed certain projects beyond the stipulated completion dates. There can be no assurance that the company will be able to complete its projects under construction or development, or any of its future projects, according to schedule or without incurring cost overruns.
- There have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and the company business, financial condition and reputation may be adversely affected.
- Its projects are exposed to various implementation and other risks and uncertainties which may adversely affect its business, results of operations and financial condition.
- The Company is yet to place orders for 100% of the vehicles for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.
- Its may be seriously affected by delays in the collection of receivables from the company clients and may not be able to recover adequately on its claims.
- The Company operates in a highly competitive market. If its unable to bid for and win construction projects, both large and small, or compete with larger competitors, its could fails to increase, or maintain, its volume of order intake and the company results of operations may be materially adversely affected.
- The company own a large fleet of construction equipment and plant & machinery, resulting in increased fixed costs to the Company. In the event the company is not able to generate adequate cash flows it may have a material adverse impact on its operations.
- The company cannot assure you that its will be able to successfully execute its growth strategies, which could affect the company business prospects and results of operations.
- Obsolescence, destruction, theft, breakdowns of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
- A downgrade in its credit rating could adversely affect the company ability to raise capital in the future.
- An inability to adapt to the changing needs of the industry and specific requirements of its clients in the infrastructure sector and in the other industries the company intend to diversify into, may adversely affect its business prospects, results of operations and financial condition.
- Conflicts of interest may arise out of common business objects between the Company, Group Companies and certain entities forming part of its Promoter Group.
- Its insurance may not be adequate to protect the company against all potential losses to which its may be subject.
- Any destruction or breakdown of its RMC manufacturing facility may have an effect on the company business, financial condition and results of operations.
- Underutilization of its installed capacity in RMC manufacturing may pose a significant risk to operational efficiency and financial performance.
- Its success is dependent on the company Promoter, management team and skilled manpower. Its inability to attract and retain key personnel or the loss of services of the company Promoter or Managing Director, Whole Time Directors and Executive Directors may have an adverse effect on its business prospects.
- There are outstanding legal proceedings involving the Company, Directors and Promoters. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The properties used by the Company for the purpose of its operations are not owned by it. Any termination of the relevant lease agreements or rent agreements in connection with such properties or its failure to renew the same could adversely affect the company operations.
- Debt facilities availed by the Company have been secured on personal guarantees of its Directors and certain members of the company Promoter Group. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees or securities of the collateral provided by its Directors and certain members of the company Promoter Group.
- Its lenders have a charge over the company movable and immoveable properties in respect of finance availed by it.
- Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
- The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain such registrations would adversely affect its operations, results of operations and financial condition.
- The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.
- Its may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill.
- Its inability to effectively manage the company growth or to successfully implement its business plan and growth strategy could have an effect on its business, results of operations and financial condition.
- The unsecured loan availed by the Company from Director may be recalled at any given point of time.
- The company has significant power requirements for continuous running of its factory. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
- Non-compliance with, and changes in, safety, health and environmental laws and regulations may adversely affect our business, financial condition and results of operations.
- Any failures to comply with financial and other restrictive covenants imposed on it under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
- The company has entered into and may enter into related party transactions in the future also.
- The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, its may not be able to respond to business opportunities, challenges or unforeseen circumstances.
- If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect its results of operations.
- Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- Its Promoters and Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The company is subject to the risk of failure of, or a material weakness in, our internal control systems and major fraud, lapses of internal control or system failures could adversely impact the company's business.
- Its business is substantially affected by prevailing economic, political and other prevailing conditions in India.
- The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The company is susceptible to risks relating to unionization of its workers employed by the company.
- Any Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.
- The company has not identified any alternate source of raising the fund for capital expenditure and working capital mentioned as its objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes and funding expenditure for inorganic growth which constitute [*] of the Issue Proceed. As on date the company has not identified the use of such funds.
- The company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.
- The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
- The company will continue to be controlled by its Promoters and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
- Its Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity
Shares at or above the Issue Price.
- A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company capital needs, which its may not be able to procure and any future equity offerings by the company.
B.R.Goyal Infrastructure Ltd Peer Comparison
Understand the company’s industry standing
B.R.Goyal Infrastructure Ltd
Teerth Gopicon Ltd
Udayshivakumar Infra Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
---
---
---
EPS-Basis
12.57
18.49
5.54
EPS-Diluted
---
---
---
NAV Per Share
144.27
24.1
31.6
P/E-Basic EPS
---
27.96
13.53
P/E-Diluted EPS
---
---
---
RONW(%)
19.09
59.96
17.22
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of B.R.Goyal Infrastructure Ltd IPO?
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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 07 Jan 2025 & closes on 09 Jan 2025.
B. R. Goyal Infrastructure Limited was originally formed as Partnership Firm in the name and style of 'M/s. Balkrishna Ramkaran Goyal' pursuant to a Deed of Partnership dated August 4, 1986. The business of the Partnership Firm was taken over by the Company pursuant to the conversion and ' M/s. Balkrishna Ramkaran Goyal' was thereafter converted from a Partnership Firm to a Private Limited Company in the name and Style of 'B. R. Goyal Infrastructure Private Limited' incorporated on April 1, 2005 issued by Registrar of Companies, Madhya Pradesh and Chhatisgarh. Subsequently, Company was converted into a Public Limited Company and the name was changed to 'B. R. Goyal Infrastructure Limited' vide fresh Certificate of Incorporation dated May 9, 2018 issued by the Registrar of Companies, Gwalior.
The Company engaged in construction and development of infrastructure projects such as roads, highways, bridges and buildings since inception in the State of Madhya Pradesh, Maharashtra, Gujarat, Punjab, Haryana, Uttar Pradesh, Mizoram and Manipur. It carry out EPC services for third parties- majorly for government departments, primarily in roads & highways, commercial complex, industrial parks, housing projects and HAM (Hybrid Annuity Mode) Projects. It is also engaged in wind power generation, manufacturing of Ready-Mix Concrete (RMC) and Toll Collection Contract (TCC).
The Company execute road construction projects as EPC contractors and construction services providers. Also, currently, it is undertaking one HAM Project. For projects that Company deliver on an EPC and construction services basis, their scope of services typically 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.
Over the years, the Company has developed an established EPC and construction business and gradually added facilities to support and
supplement EPC and construction business. It developed in house resources to deliver a project from conceptualization to completion that includes design and engineering team and RMC manufacturing unit with an installed capacity of 1.80 Lakhs cubic meters per annum at Indore in 2008. Besides, it ventured in the business of Wind Energy/Power Generation by installing a 1.25 MW Wind Power Turbine at Jaisalmer, in Rajasthan which commissioned in 2005. It entered into Power Purchase Agreement with Ajmer Vidyut Vitran Nigam Limited for a period of 20 years commencing from March 2005 at a pre-determined tariff.
In 2021-22, B. R Goyal Tollways LLP became a Subsidiary of the Company and BR-DSR Lateri Shamshabad Private Limited became subsidiary of the Company in 2022-23.
The Company is proposing an Initial Public Fresh Issue upto 64,32,000 Equity Shares.
B.R.Goyal Infrastructure Ltd IPO will close on 09 Jan 2025.
- Established roads and highways sector focused construction developer.
- Efficient business model.
- Strong Order Book with growing project portfolio.
- Technology enabled project management capabilities.
- Project management.
- Equipment ownership.
- Strong Workforce.
- Experienced management team.
- Strong Credit Rating.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Brij Kishore Goyal | 4912432 | 28.05 | 4912432 | 20.62 |
| 2 | Balkrishna Goyal | 896980 | 5.12 | 896980 | 3.76 |
| 3 | Gopal Goyal | 4912446 | 28.05 | 4912446 | 20.62 |
| 4 | Rajendra Kumar Goyal | 4912446 | 28.05 | 4912446 | 20.62 |
| 5 | Yash Goyal | --- | --- | --- | --- |
| 6 | Uppal Goyal | --- | --- | --- | --- |
| 7 | B.R.Goyal Holdings Pvt Ltd | 1750000 | 9.99 | 1750000 | 7.35 |
| 8 | Rajendra Kumar Goyal (HUF) | 1400 | 0.01 | 1400 | 0.01 |
| 9 | Gopal Goyal (HUF) | 1400 | 0.01 | 1400 | 0.01 |
| 10 | Brij Kishore Goyal (HUF) | 1400 | 0.01 | 1400 | 0.01 |
| 11 | Balkrishna Goyal (HUF) | 1400 | 0.01 | 1400 | 0.01 |
| 12 | Pramod Agarwal | 2800 | 0.02 | 2800 | 0.01 |
- The projects the company operates have been awarded primarily through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations.
- Its EPC business is a major source of the company revenue and the company financial condition would be materially and adversely affected if its fail to obtain new contracts.
- Its business is substantially dependent on the company key customers from whom its derive a significant portion of the company revenues. The loss of any significant clients may have a material and adverse effect on its business and results of operations.
- Delays in the completion of construction of current and future projects could lead to termination of the EPC agreements or cost overruns, which could have an adverse effect on its cash flows, business, results of operations and financial condition.
- Its actual cost in executing an EPC contract may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have a material adverse effect on its results of operations, cash flows and financial condition.
- Due to the nature of its contracts, the company may be subjected to claim and counter-claims to and from the government authorities, any adverse outcome of any such claim or counter claim may have an adverse effect on its profitability.
- Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
- The company depends on forming joint ventures to qualify for the bidding process for and to implement large projects and its inability to enter into or successfully manage such joint ventures could impose additional financial and performance obligations resulting in reduced profits or in some cases, significant losses from the joint venture, which could have a material adverse effect on its business, financial condition and results of operation.
- The lack of formal educational qualifications among its directors presents a potential risk that could affect the business operations and strategic direction of the company.
- The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
- Its business is subject to seasonal and other fluctuations that may affect the company cash flows and business operations.
- Any increase in or occurrence of its contingent liabilities and commitments may adversely affect its financial condition.
- Accuracy in estimation, calculation while bidding the tender is of prime importance.
- Its business is spread across the state of Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram and Manipur and majority of its revenue may be affected by various factors associated with Madhya Pradesh & Maharashtra.
- The Company is required to provide its government clients a certain sum of money as retention money which is released only after the expiry of the defects liability period. Any delay in the release of the retention money may have a material adverse effect on its business, results of operations and financial condition.
- The Company has been made party to a matter filed against an insurance company and the details of the case are not known to it. Hence, the company is not in a position to identify the contingent liability in the matter.
- Shares of the company may face risks of non- listing or delays in the listing process, which could adversely impact investor confidence and future funding opportunities.
- Increases in the prices of construction materials, fuel, labour and equipment, their availability, quality and cost overruns could have an adverse effect on it.
- In the past, the company has incurred additional costs in order to complete some of its projects and have also completed certain projects beyond the stipulated completion dates. There can be no assurance that the company will be able to complete its projects under construction or development, or any of its future projects, according to schedule or without incurring cost overruns.
- There have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and the company business, financial condition and reputation may be adversely affected.
- Its projects are exposed to various implementation and other risks and uncertainties which may adversely affect its business, results of operations and financial condition.
- The Company is yet to place orders for 100% of the vehicles for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.
- Its may be seriously affected by delays in the collection of receivables from the company clients and may not be able to recover adequately on its claims.
- The Company operates in a highly competitive market. If its unable to bid for and win construction projects, both large and small, or compete with larger competitors, its could fails to increase, or maintain, its volume of order intake and the company results of operations may be materially adversely affected.
- The company own a large fleet of construction equipment and plant & machinery, resulting in increased fixed costs to the Company. In the event the company is not able to generate adequate cash flows it may have a material adverse impact on its operations.
- The company cannot assure you that its will be able to successfully execute its growth strategies, which could affect the company business prospects and results of operations.
- Obsolescence, destruction, theft, breakdowns of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
- A downgrade in its credit rating could adversely affect the company ability to raise capital in the future.
- An inability to adapt to the changing needs of the industry and specific requirements of its clients in the infrastructure sector and in the other industries the company intend to diversify into, may adversely affect its business prospects, results of operations and financial condition.
- Conflicts of interest may arise out of common business objects between the Company, Group Companies and certain entities forming part of its Promoter Group.
- Its insurance may not be adequate to protect the company against all potential losses to which its may be subject.
- Any destruction or breakdown of its RMC manufacturing facility may have an effect on the company business, financial condition and results of operations.
- Underutilization of its installed capacity in RMC manufacturing may pose a significant risk to operational efficiency and financial performance.
- Its success is dependent on the company Promoter, management team and skilled manpower. Its inability to attract and retain key personnel or the loss of services of the company Promoter or Managing Director, Whole Time Directors and Executive Directors may have an adverse effect on its business prospects.
- There are outstanding legal proceedings involving the Company, Directors and Promoters. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The properties used by the Company for the purpose of its operations are not owned by it. Any termination of the relevant lease agreements or rent agreements in connection with such properties or its failure to renew the same could adversely affect the company operations.
- Debt facilities availed by the Company have been secured on personal guarantees of its Directors and certain members of the company Promoter Group. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees or securities of the collateral provided by its Directors and certain members of the company Promoter Group.
- Its lenders have a charge over the company movable and immoveable properties in respect of finance availed by it.
- Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
- The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain such registrations would adversely affect its operations, results of operations and financial condition.
- The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.
- Its may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill.
- Its inability to effectively manage the company growth or to successfully implement its business plan and growth strategy could have an effect on its business, results of operations and financial condition.
- The unsecured loan availed by the Company from Director may be recalled at any given point of time.
- The company has significant power requirements for continuous running of its factory. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
- Non-compliance with, and changes in, safety, health and environmental laws and regulations may adversely affect our business, financial condition and results of operations.
- Any failures to comply with financial and other restrictive covenants imposed on it under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
- The company has entered into and may enter into related party transactions in the future also.
- The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, its may not be able to respond to business opportunities, challenges or unforeseen circumstances.
- If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect its results of operations.
- Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- Its Promoters and Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The company is subject to the risk of failure of, or a material weakness in, our internal control systems and major fraud, lapses of internal control or system failures could adversely impact the company's business.
- Its business is substantially affected by prevailing economic, political and other prevailing conditions in India.
- The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The company is susceptible to risks relating to unionization of its workers employed by the company.
- Any Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.
- The company has not identified any alternate source of raising the fund for capital expenditure and working capital mentioned as its objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes and funding expenditure for inorganic growth which constitute [*] of the Issue Proceed. As on date the company has not identified the use of such funds.
- The company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.
- The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
- The company will continue to be controlled by its Promoters and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
- Its Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company capital needs, which its may not be able to procure and any future equity offerings by the company.
The Issue type of B.R.Goyal Infrastructure Ltd is Book Building - SME.
The minimum application for shares of B.R.Goyal Infrastructure Ltd is 1000.
The total shares issue of B.R.Goyal Infrastructure Ltd is 6312000.
Public issue of 63,12,000 equity shares of face value of Rs. 10/- each of B.R.Goyal Infrastructure Limited ("BRGIL" or "the Company") for cash at a price of Rs. 135/- per equity share (Including a Share Premium of Rs. 125/- per Equity Share) ("Issue price") aggregating to Rs. 85.21 crores, of which 3,16,000 equity shares of face value of Rs. 10/- each at a price of
Rs. 135/- aggregating to Rs. 4.26 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion") and 38,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 135/- per equity share aggregating to Rs. 0.51 crores will be reserved as employee reservation portion (the "Employee Reservation Portion"). The issue less market maker reservation portion and employee reservation portion i.e., issue of 59,58,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 135/- per equity share for cash, aggregating to Rs. 80.43 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.49 % and 25.01 % respectively of the post issue paid up equity share capital of the company.
The Issue Price is Rs. 135 per equity share of face value of Rs. 10 each.
The Issue price is 13.50 times the face value of the equity shares.
Bid can be made for a minimum of 1000 equity shares and in multiples of 1000 equity shares.
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