Ganesh Infraworld Limited, formerly known as Ganesh International, has emerged as one of the fastest-growing startups in Eastern India, particularly focusing on servicing the major EPC (Engineering, Procurement, and Construction) giants. The company specializes in providing comprehensive, end-to-end solutions for erection services in complex projects, ensuring a seamless service offering for all civil, electrical, and infrastructure needs. Their commitment to offering 24/7, year-round accessibility makes them a standout choice for clients seeking reliability and innovation in infrastructure services.

Ganesh Infraworld IPO Overview

Ganesh Infraworld's upcoming IPO is a Book Built Issue with an amount of ₹98.57 crores, entirely consisting of a fresh issue of 118.76 lakh shares. The IPO opens on November 29, 2024, and closes on December 3, 2024. The shares are set to be listed on the NSE & SME on or about December 6, 2024. This highly anticipated public offering allows both retail investors and high-net-worth individuals (HNIs) to apply, with a lot size of 1,600 shares.

The price band for the IPO is set between ₹78 and ₹83 per equity share. Based on the upper price band of ₹83, the market capitalization of Ganesh Infraworld is estimated to be ₹354.58 crores. Retail investors will need to invest a minimum of ₹1,32,800 for 1 lot (1,600 shares), while HNIs must apply for at least 2 lots, amounting to ₹2,65,600. The Grey Market Premium (GMP) for Ganesh Infraworld's IPO is expected to be ₹25, indicating potential listing gains of up to 30% upon listing, based on the current market conditions.

Financial Performance and IPO Metrics

Ganesh Infraworld has demonstrated strong revenue growth in the past few years. The company's revenues from operations for FY 2024 were ₹21,232.86 lakhs, showing substantial growth from ₹13,504.85 lakhs in FY 2023 and ₹8,115.46 lakhs in FY 2022. Additionally, the EBITDA figures for the first five months of FY 2024 are ₹2,163.62 lakhs, further reflecting robust financial health. The profit after tax (PAT) for FY 2024 stood at ₹1,537.20 lakhs, demonstrating consistent profitability.

For investors considering the Ganesh Infraworld IPO, the company is offering a pre-issue EPS of ₹7.11, which translates to a post-issue EPS of ₹3.64. This gives a pre-issue P/E ratio of 11.67x and a post-issue P/E ratio of 22.81x, compared to the industry P/E ratio of 21x. These metrics suggest that the IPO is fairly priced, offering potential for growth, but with moderate valuation risk.

Grey Market Premium (GMP) and Subscription Details

As of December 3, 2024, the IPO has been oversubscribed by an impressive 326.16 times on its final day of subscription. The Grey Market Premium is ₹25, indicating strong demand for the shares, with a projected listing gain of 30%. However, investors should be cautious as the Grey Market Premium (GMP) is unregulated and does not represent the official market price.

Ganesh Infraworld's IPO raised ₹26.58 crores from anchor investors at the upper price band of ₹83 per share. These investors were allocated 32,03,200 shares as part of the anchor investor portion, ensuring a stable foundation for the IPO.

IPO Allotment Process

The IPO allotment for Ganesh Infraworld will be finalized on December 4, 2024, with results expected to be available on the registrar's website. To check the allotment status, investors can visit the allotment status page, select Ganesh Infraworld Limited IPO, and enter the application number, PAN, or DP Client ID. This will provide the real-time status of the allotment and guide investors in their next steps.

The Upcoming IPOs in this week and coming weeks are Dhanlaxmi Corp, Jungle Camps, Toss The Coin, Purple United, Rosmerta Digital and Avanse Financial.

The Current active IPO is Nisus Finance and Emerald Tyre Manufacturers.

Use of IPO Proceeds

The proceeds from the IPO will be used for long-term working capital requirements and for general corporate purposes. Specifically, the company plans to invest ₹7,000 lakhs in working capital, helping to expand and scale operations across the civil, electrical, road, rail, and water infrastructure sectors.

Conclusion and Investment Recommendation

Ganesh Infraworld's IPO represents a promising opportunity for investors looking to capitalize on the growing infrastructure and EPC sectors in Eastern India. The company’s solid financial track record, along with its innovative services and expanding market presence, make it an attractive option for listing gains or long-term investment. Given the strong demand and potential valuation growth, risky investors may want to apply for this IPO.

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