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Gremach Infrastructure Ltd IPO (Gremach IPO) Detail

Mar 8, 2007 - Mar 19, 2007

Gremach Infrastructure Equipments & Projects Limited is in the business of providing rental of construction /earthmoving machineries to medium / large construction companies who are engaged in the business of constructing/building of roads, airports, power projects, institutional & industrial complexes, multiplexes and residential buildings and other related infrastructural activities chiefly catering to Public Sector undertakings, private sector, CPWD and various national & international government aided projects.

In addition to renting Gremach owned equipments, Gremach also hire equipments owned by other parties and rent to our own clients. In the past over 65% of Gremach total rental incomes are derived from equipments, which are exclusively owned by third parties.

Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges and to raise capital to
Acquire Ports, Mining and other Road Construction Equipments.

Gremach IPO Details

IPO Opening Date Mar 8, 2007
IPO Closing Date Mar 19, 2007
Issue Type Book Built Issue IPO
Face Value ₹10 per equity share
IPO Price ₹72 to ₹86 per equity share
Market Lot 70 Shares
Min Order Quantity 70 Shares
Listing At BSE, NSE
Issue Size6,860,466 Eq Shares of ₹10
(aggregating up to ₹59.00 Cr)

Gremach IPO Lot Size

The Gremach IPO market lot size is 70 shares. A retail-individual investor can apply for up to 33 lots (2310 shares or ₹198,660).

Application Lots Shares Amount (Cut-off)
Minimum 1 70 ₹6,020
Maximum 33 2310 ₹198,660
Company name has been changed to 'Sancia Global Infraprojects Ltd'

IPO Notices

External Link

Revision in Gremach Infrastructure Equipments & Projects Ltd. Book Building Issue:

Book Running Lead Manager to the issue has informed the Exchange that the issue will close on March 19, 2007 instead of the earlier closing day of March 14, 2007. Further price band has been revised from Rs.75/- to Rs.90/- per share to Rs.72/- to Rs.86/- per share.

Gremach IPO Subscription Status (Bidding Detail)

The Gremach IPO is subscribed 1.13 times on 3/19/2007 5:00:00 PM. The public issue subscribed 0.38 times in the retail category, 0.34 times in the QIB category, and 6.31 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Gremach IPO Prospectus

Gremach IPO Rating

73
3.1
Rating:Rated 3.1 stars
Vote Here ...

Gremach IPO Listing Date

Listing Date Wednesday, April 11, 2007
BSE Script Code 532836
NSE Symbol GREMACH
Listing In B1 Group of Securities
ISIN INE391H01010
IPO Price ₹86 per equity share
Face Value ₹10 per equity share

Listing Day Trading Information

.
IPO Price
Open
Low
High
Last Trade
BSE
₹86.00
₹92.00
₹80.70
₹100.00
₹83.95

Company Contact Information

Gremach Infrastructure Ltd
Gremach Infrastructure Equipments & Projects Ltd,
P-50, Princep Street, Deo Bhawan, 3 rd Floor,
Kolkata-700 017
Phone: +91-33- 2236 1246
Email: ipo@gremach.com
Website: http://www.gremach.com

Gremach IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: gremachinfra@intimespectrum.com
Website: https://linkintime.co.in/

Gremach IPO Reviews / Ratings

  • Business Line - Avoid

Gremach IPO FAQs

Gremach IPO is a main-board IPO of 6,860,466 equity shares of the face value of ₹10 aggregating up to ₹59.00 Crores. The issue is priced at ₹72 to ₹86 per equity share. The minimum order quantity is 70 Shares.

The IPO opens on Mar 8, 2007, and closes on Mar 19, 2007.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Gremach IPO opens on Mar 8, 2007 and closes on Mar 19, 2007.

Gremach IPO lot size is 70 Shares and the minimum order quantity is 70 Shares.

You can apply in Gremach IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Gremach IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Gremach IPO allotment status.

The Gremach IPO listing date is on Wednesday, April 11, 2007.

Gremach IPO Message Board

Ranked Members  Ranked Members

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27 Comments

27. Gaurav |Apr 11, 2007 3:58:47 PM
its listed @92 and currently 87
26. himanshoo |Apr 10, 2007 2:42:48 PM
this IPO will surely fetch a premium of about 5-10 % but after few days of listing it might go down due to market sentiments. it is a good company for long term and can be entered after listing gains are factored in.
25. tanushree |Apr 8, 2007 2:27:54 AM
yes in know this stock cannot list above 50 40 rs is good price to eneter this stock.
24. Madhavan |Apr 5, 2007 5:53:44 PM
Anybody knows when is this ipo listed?
23. Gaurav |Apr 4, 2007 1:06:58 PM
I also got 100% :)
22. RajeshKumar |Apr 4, 2007 11:18:05 AM
Allotment is Done. I have got 100% allotment.
21. Vikram R |Mar 30, 2007 10:14:31 PM
Hi Madhu,
I don't think allotment is done yet.
20. madhu |Mar 30, 2007 8:57:32 PM
Anybody knows..........allotment status url
19. Amjad |Mar 29, 2007 4:35:59 PM
Anybody knows..........when is this IPO getting listed?
18. rituvarma |Mar 18, 2007 7:20:58 PM
earned good amount in idea, indian bank and mindtree. i will not apply for this ipo instead i will apply the profits from the above issue to ICRA
17. Er.Vijay |Mar 13, 2007 6:47:40 PM
Leave it & vimal oil & apply for ICRA ,its an excellent issue
16. Vikram R |Mar 12, 2007 1:12:05 AM
The Keynote Capitals report on Gremach Infrastructure IPO:

Recommendation - Subscribe with a medium term view

^ Gremach Infrastructure Equipments & Projects (GIEPL) is into renting of construction equipment and machineries to companies engaged in construction of roads, power projects, multiplexes and industrial complexes etc.

^ Present market size of the equipment rental industry is estimated at Rs12.5bn, (CAGR of 13.0% during 2001-06) expected to grow to Rs15bn by 2011. The industry is dominated by several small local players in the unorganized sector, with an estimated 85% market share. The organized sector is represented by players like Quipo Infrastructure Equipment Ltd., NAC Infrastructure Equipment Ltd. (both promoted by Srei Infrastructure Finance Ltd.) and GIEPL.

^ GIEPL has a strong client base including L & T, Gammon India, HCC, Shapoorji Pallonji & Co. and Punj Lloyd, most of which give repetitive orders.

^ Share of owned equipment will move up from 17% currently to 36% in FY08 and to 45% in FY09. Since renting of own equipment offers better margins, the proposed purchase of Rs61Cr worth of new construction equipment will enable it to improve EBITDA margins.

^ While Quipo may have a much better brand equity, a larger network and bigger size, we believe the rapidly-growing equipment rental market in India can not only afford adequate growth opportunities to smaller players like GIEPL, but easily accommodate a couple of more players.

^ In addition to the growing pie, another major positive for this business segment is the growing share of organized sector players like Quipo and GIEPL. We believe with their national presence, depth of management and brand equity, players like Quipo and GIEPL will be able to take away a significant market share from the unorganized sector, going forward.

^ The unconfirmed placement by Quipo to some investors would translate into a valuation of $200mn, or Rs 890 crore approximately. This translates into a price-to-sales ratio of around 5.8x, assuming a topline growth of 70% in FY07 for
Quipo, making it substantially more expensive that GIEPL, at 1.2x.

^ However, in our view, the unlisted Quipo which is undoubtedly the market leader, with its high EBITDA margins clearly deserves this richer valuation. We expect Quipo's growth trajectory to be much higher than that of GIEPL's. However, till such time as Quipo goes public (for which no timelines have been announced), we believe GIEPL can be a good play on the booming equipment rental market in India.

^ In view of the valuation of 11.6x FY08E and 7.1x FY09E, we believe investors can consider this IPO with a medium term view.

Investment Concerns
* In FY06, 83% of total rental income was attributable to re-hiring of equipment, which offers lower margins.
Some companies belonging to the promoter group are in the same line of business, which may lead to a conflict of interest with GIEPL.

* GIEPL does not have any long-term contract with clients and the work orders depend upon the client's requirement of construction equipments.
15. Suvimitra |Mar 10, 2007 10:37:21 PM
The current market trend is very volatile. Despite a good fundamentals such as in case of Power Finance Corporation,if the listing gains are around 15-20% are there. The same thing happened in case of IDEA. If the Gremach issue is good, can it sustain the volatile market changes as of now that is the question to be asked. Otherwise, the issue seems to be very good & one can exit at the listing time & long term player could stay for more returns.
14. Vikram R |Mar 10, 2007 4:54:33 PM
Financials

The company’s total income for the financial year ended March 31, 2006 was Rs 83.45 crore against Rs 75.97 crore for the corresponding period the previous year. Profit after tax has increased from Rs 4 crore in FY05 to Rs 5.94 crore in FY06. RoNW stood at 6.12%, 15.03% and 15.30% during FY04, FY05 and FY06 respectively. On an annualized basis, the RoNW works out to 24.78% in FY07.

Valuations

At the price band of Rs 75-90, the stock trades at a P/E multiple of 7.90x and 9.48x of FY07 annualised earnings, which is at a discount to peers like Sanghvi Movers (P/E: 14.8x). We expect the company to show consistency in earning growth on the back of strong infrastructure spending. The stock looks attractive and we recommend that investors apply to the issue with a long-term perspective. (from ICICI)
13. Abhishek |Mar 8, 2007 10:10:13 PM
I should apply in this IPO or not can u suggest, if yes then what should be listing gain approx.
12. Pritam |Mar 8, 2007 4:14:24 AM
Do not apply for this ipo, Better invest in sanghvi movers which is already Established & is available in the market at a discount price
11. Vijay Vatyani |Mar 7, 2007 5:00:04 AM
This a very good company
10. Arun |Mar 5, 2007 4:06:32 PM
Fundamentally very strong company having stong order book.Invest for listing gains and for long term investment.
9. paramvir |Mar 4, 2007 9:13:48 PM
can anybody tell, whether to apply or not, as this company is not into construction directly, but are catering to construction companies.
8. atul |Mar 4, 2007 10:08:28 AM
if anybody know about this ipo plz tell me,i want to invest in it