CONTENTS:

Ganesh Infraworld IPO Overwhelming Demand

The Ganesh Infraworld IPO, an SME public offering from a construction services company, is set to close for subscriptions today, December 3, 2024. The Grey Market Premium (GMP) has shown significant growth, suggesting a potential for strong listing gains.

As of Day 3, the subscription details are as follows:

• Qualified Institutional Buyers (QIBs): 2,13,61,600 shares bid
• Non-Institutional Investors (NIIs): 23,26,56,000 shares bid
• Retail Individual Investors (RIIs): 39,92,48,000 shares bid

Total Bids: 65,32,65,600 shares

The surge in GMP reflects robust investor interest and optimism regarding the IPO’s market debut.

The IPO of Ganesh Infraworld Ltd, a construction services company, continued to receive a strong response on Day 2, with bids totaling 12,94,57,600 against the 86,73,600 shares on offer, achieving an overall subscription of 14.93 times. The IPO, which opened on November 29, will close on December 3, aiming to raise ₹98.58 crore.

Key Details:

• Price Band: ₹78 to ₹83 per share
• Minimum Lot Size: 1,600 shares
• Minimum Retail Investment: ₹1,32,800
• HNIs Minimum Investment: ₹2,65,600 (two lots)
• Lead Manager: Vivro Financial Services Pvt. Ltd.
• Registrar: Link Intime India Pvt. Ltd.

Grey Market Premium (GMP):

Ganesh Infraworld’s shares are trading at a 60.24% premium in the grey market, with an estimated price of ₹133 per share, compared to the issue’s upper band price of ₹83. This marks a notable increase from last Friday’s anticipated premium of 42.17%. The tentative listing date is December 6 on NSE’s SME platform, Emerge.

Brokerage Perspective:

Arihant Capital Markets recommends subscribing to the IPO, citing the company’s solid order book of 41 projects across infrastructure sectors like roads, rail, and water. The company’s focus on efficient capital management and strategic allocation of IPO proceeds positions it for long-term growth. At the upper price band, the IPO is valued at a P/E ratio of 22.81x based on FY24 EPS and 9.61x on FY25 earnings projections.

Ganesh Infraworld’s IPO, aiming to raise ₹98.58 crore, opened for subscription on November 29, 2024, and was fully booked on the first day. The SME issue received bids for over 1.09 crore shares against the 74.86 lakh shares available, achieving an overall subscription of 1.46 times.

Subscription Breakdown on Day 1:

• Retail Investors: Subscribed 2.39 times, bidding for 89.68 lakh shares (against 37.44 lakh allotted).
• Non-Institutional Investors (NIIs): Subscribed 1.24 times, bidding for 19.92 lakh shares (against 16.04 lakh allotted).
• Qualified Institutional Buyers (QIBs): Submitted bids for 3,200 shares, with 21.37 lakh shares reserved for this category.

IPO Details:

• Price Band: ₹78 to ₹83 per share
• Offer Size: ₹98.58 crore (comprising 118.77 lakh fresh shares)
• Minimum Retail Investment: ₹1,32,800 (1,600 shares per lot)
• HNIs Minimum Investment: ₹2,65,600 (3,200 shares or two lots)
• Registrar: Link Intime India Pvt. Ltd.
• Lead Manager: Vivro Financial Services Pvt. Ltd.
• Market Maker: Rikhav Securities

Important Dates:

• Subscription Period: November 29 to December 3
• Allotment Date: December 4
• Refunds Initiation: December 5
• Listing Date: December 6 (NSE SME platform, Emerge)

Promoters and Financials:

Promoted by Vibhoar Agrawal and Rachita Agrawal, who held an 81.84% stake pre-IPO, the company has shown strong financial performance:

• Revenue (FY24): ₹291.81 crore, up 116% from ₹135.04 crore in FY23
• Net Profit (FY24): ₹15.54 crore, a 198% increase from ₹5.2 crore in FY23
• Net Worth (FY24): ₹37.2 crore, up 145% from ₹15.15 crore in FY23

IPO Objectives:

The funds will be utilized to meet long-term working capital needs and for general corporate purposes.

About Ganesh Infraworld Ltd.:

Established in 2017, Ganesh Infraworld offers construction services across industrial, residential, commercial, road, railway, power, and water distribution sectors.