Ganesh Green Bharat made a remarkable debut in the stock market today, with its shares opening at ₹361 on the NSE SME platform, which is 90% higher than the issue price of ₹190 per share. This impressive opening aligns with the high expectations set by the grey market premium (GMP), which indicated a premium of ₹235 per share over the issue price.

Also Read | GANESH GREEN BHARAT IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

IPO Details:

The IPO for Ganesh Green Bharat opened for subscription on Friday, July 5, and closed on Tuesday, July 9. The price band for the IPO was set between ₹181 and ₹190 per equity share, with a face value of ₹10. The lot size was 600 shares. The IPO was a purely offer-for-sale, consisting of up to 6,591,000 equity shares, aiming to raise ₹125.23 crore. Hem Securities Ltd acted as the book running lead manager, while Kfin Technologies Ltd served as the issue registrar.

The IPO saw overwhelming demand from investors, being subscribed 229.92 times by the final day. This included subscriptions from various segments: retail, Qualified Institutional Buyers (QIB), and Non-Institutional Investors (NII). This strong subscription rate underscored the market's confidence in Ganesh Green Bharat's business model and future prospects.

Business Operations:

Ganesh Green Bharat Ltd is engaged in several crucial sectors, including water supply projects, electrical contracting, and the manufacturing of solar photovoltaic (PV) modules. The company operates solar PV projects with a total installed capacity of 236.73 MW, and it has plans to develop an additional 163.27 MW. Its associate, Souraj Energy Private Ltd., contributes significantly with an installed capacity of 192.72 MW for producing solar PV modules. The technologies used in their solar PV modules include monocrystalline, polycrystalline, and Topcon solar cells.

Financial Performance:

In its financial performance, Ganesh Green Bharat reported consolidated revenues of ₹170.17 crore, a PAT of ₹19.88 crore, and an EBITDA of ₹34.62 crore. The company boasts an impressive Return on Equity (ROE) of 46.42% and a Return on Capital Employed (ROCE) of 29.98%. These strong financial metrics reflect the company's efficient operations and profitable growth trajectory.

Market Debut:

On the first day of trading, Ganesh Green Bharat shares opened at ₹361 per share, marking a 90% premium over the IPO price. This debut was in line with market expectations, given the significant grey market premium. The strong start in the stock market highlights investor confidence and sets a positive tone for the company's future as a publicly listed entity.

Also Read | Effwa Infra and Research Shares Debut with a 90% Premium at ₹155.80 on NSE SME

Future Prospects:

The proceeds from the IPO will be utilized for general business purposes, working capital requirements, and the repayment of some existing borrowings. Additionally, the funds will support capital expenditures for the installation of new machinery and equipment at the plant. This strategic allocation of funds will help Ganesh Green Bharat enhance its operational capabilities and expand its market presence.

The company's robust involvement in renewable energy projects, particularly solar energy, positions it well to capitalize on the growing demand for sustainable energy solutions. The firm's strong financial performance and ambitious expansion plans make it an attractive investment opportunity.

Industry Landscape:

Ganesh Green Bharat operates in a competitive landscape with notable peers such as Solex Energy Ltd, Waaree Renewable Technologies, and Zodiac Energy Ltd. These companies have P/E ratios of 133.86, 131.91, and 94.15, respectively. Ganesh Green Bharat's entry into the stock market adds a promising player to this growing sector, with a focus on innovative and sustainable solutions.

Conclusion:

Ganesh Green Bharat's impressive market debut and strong investor response underscore the company's potential and robust business model. As it embarks on its journey as a publicly listed entity, the company is well-positioned to leverage its strengths in water supply projects and solar energy services to drive growth and create value for its shareholders. Investors will closely watch the company's performance in the coming months, anticipating continued success and expansion in the renewable energy and infrastructure sectors.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.