iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

GR Infraprojcts now trading at all-time low, stock down 18% in 3 days

15 Jun 2022 , 12:10 PM

In Wednesday’s session, GR Infraprojects’ stock reached a fresh low of Rs1,111, down 4% on the BSE. After the Central Bureau of Investigation (CBI) conducted searches at numerous places on the company’s facilities, the stock has dropped 18% in the last three trading sessions.

On Monday, June 13, 2022, GR Infraprojects announced that a team of CBI agents searched Vinod Kumar Agarwal’s home and the company’s corporate office in Gurugram, Haryana, as well as other locations. The search at the Chairman’s home is currently complete, but the search at other locations is still ongoing.

The case involves a road contract in the northeastern region that was signed in 2018 and for which the National Highway Authority of India (NHAI) was supposed to give a discharge certificate after four years of necessary maintenance on March 31, 2022. The NHAI has been accused of favoring GR Infraprojects in the processing and clearance of final invoices, obtaining bank guarantees, and issuing discharge certificates. The bribe was worth Rs4 lakh.

In a separate regulatory filing on June 14, GR Infraprojects stated that all of the company’s operations, including its core operations at construction sites across India, are operating normally and smoothly, but that it is difficult for the company to assess the impact of the aforementioned matter at this time. The corporation also stated that it will follow all applicable laws and cooperate with law enforcement agencies.

On July 19, 2021, GR Infraprojects went public for the first time. The Rajasthan-based road and highways construction company raised Rs963 crore through an IPO (IPO). The company had issued shares at a price of Rs837 each. With today’s drop, the stock has down 46% from its all-time high of Rs2,277 set on October 25, 2021.

Over FY22-24E, the good order book position and execution pick-up should result in a 12.4% topline CAGR. With built-in raw material price volatility clauses, the current order mix provides margin sustainability of roughly 16%. According to the brokerage business, the lack of big negative revelation from the CBI raid will be a key trigger for future price performance.

Related Tags

  • Infrastructure CBI
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.