Ganesh Infraworld Limited, formerly known as Ganesh International, is one of the fastest-growing startups in Eastern India, specializing in providing end-to-end services for EPC Giants. The company primarily focuses on offering erection services for complex infrastructure projects. Their dedication to round-the-clock service accessibility sets them apart, striving to meet the needs of clients in sectors like Civil & Electrical Infrastructure, Road & Rail Infrastructure, and Water Infrastructure.

The Ganesh Infraworld IPO is a Book Built Issue amounting to ₹98.57 Crores, which consists entirely of a Fresh Issue of 118.76 Lakh Shares. The IPO is currently open for subscription from November 29, 2024, and will close on December 03, 2024. The allotment is expected to be finalized on December 04, 2024, with the tentative listing date set for December 06, 2024, on the NSE & SME.

IPO Price Band and Market Capitalization

• Price Band: ₹78 to ₹83 per equity share.
• Market Capitalization (at ₹83 per share): ₹354.58 Crores.
• Lot Size: 1,600 shares.
• Retail Investor Minimum Investment: ₹1,32,800 (1 lot).
• HNIs Minimum Investment: ₹2,65,600 (2 lots).

Grey Market Premium (GMP) and Market Trends

As of now, the Grey Market Premium (GMP) for Ganesh Infraworld IPO is ₹25, which suggests a potential listing gain of around 30%. However, GMP trading is not a reliable indicator of price discovery, as it operates in an unregulated environment, and the real market value will be known only after the IPO is listed on the stock exchange.

Subscription Status

As of 11:00 AM on December 2, 2024, the IPO has been subscribed 5.12 times on its second day of subscription. The live subscription status can be checked on the NSE.

Anchor Investors

Ganesh Infraworld raised ₹26.58 Crores from anchor investors at ₹83 per share, with a total of 32,03,200 equity shares allotted to them. The company consulted Vivro Financial Services Private Limited as the Book Running Lead Manager, while Link Intime India Private Limited serves as the Registrar for the IPO.

Ganesh Infraworld IPO Allotment Process

• Allotment Date: December 04, 2024
• Investors can check the allotment status by visiting the Registrar's website and providing details like the application number, PAN, or DP Client ID.

Objectives of Ganesh Infraworld IPO

The proceeds from the fresh issue will be utilized for:

1. ₹7,000 Lakhs towards meeting long-term working capital requirements.
2. General Corporate Purposes.

Financial Performance and Valuation

• Revenues: ₹21,232.86 Lakhs (FY 2024, 5 months ending August), with a strong year-on-year increase.

• EBITDA: ₹2,163.62 Lakhs (FY 2024, 5 months ending August).

• Profit After Tax: ₹1,537.20 Lakhs (FY 2024, 5 months ending August).

• The pre-issue EPS stands at ₹7.11, and the post-issue EPS will be ₹3.64.

• The P/E ratio of the IPO is 11.67x pre-issue and 22.81x post-issue, compared to the industry P/E ratio of 21x.

These financial metrics suggest that the IPO is fairly priced.

Risk and Recommendation

Based on the Grey Market Premium, financial performance, and IPO valuation, Ganesh Infraworld Limited IPO presents a potentially lucrative opportunity, particularly for risky investors who are looking for listing gains or long-term investment potential.

About Ganesh Infraworld

Ganesh Infraworld specializes in EPC services and is led by Vibhoar Agrawal, the company’s Chairman, Managing Director, and Chief Executive Officer. Agrawal has over 8 years of experience in the construction business and has been a pivotal figure in the company’s growth.

Disclaimer

The information provided in this article is based on publicly available data. The Grey Market Premium (GMP) mentioned is an informal, unregulated indicator and does not guarantee any listing gains. Always conduct your own research or consult with a financial advisor before making investment decisions.