Ganesh Infraworld IPO Subscribed More Than 350 Times; GMP Climbs 94% Ahead Of Allotment On Dec. 4

The initial public offer (IPO) of Ganesh Infraworld Ltd. which opened on Friday was booked 369.56 times on its final day of bidding. The SME issue was subscribed 23.87 times on Monday and was fully subscribed on Day 1 led by demand from retail investors. The Ganesh Infraworld IPO consists entirely of a fresh issue of nearly 1.19 lakh shares. The company aims to raise Rs 98.58 crore via its public offer.

The IPO was subscribed 369.56 times on Tuesday

• Qualified Institutions: 163.52 times

• Non-Institutional Buyers: 865.82 times

• Retail Investors: 274.48 times

The latest grey market premium (GMP) for the Ganesh Infraworld IPO stood at Rs 78, as of 4:53 p.m. on December 3. Considering the upper end of the IPO price band of Rs 83, this suggests an estimated listing price of Rs 161 per share, as per Investorgain. The latest GMP indicates a potential listing gain of 93.98%.

The GMP trend for the Ganesh Infraworld IPO indicates a strong listing with the grey market premium at Rs.14 before the issue opened for bidding. The GMP stood at Rs 35 when the issue opened for subscription and has shown a sharp spike ahead of its listing on December 6.

Note: GMP is not an official price quote for the stock and is based on speculation.

The IPO allotment for Ganesh Infraworld IPO is expected to be finalised by Wednesday, December 4. The company will initiate refunds on December 5, while the successful bidders will also receive shares in their Demat accounts the same day.

Shares of Ganesh Infraworld IPO will be listed on the NSE Emerge, with the tentative listing date fixed as December 6.

Ganesh Infraworld IPO price band has been set between Rs 78 and Rs 83 per share. The retail investors participating in the Ganesh Infraworld IPO can place bids for at least a single lot size, or 1,600 shares. The minimum investment amount for the retail investors is Rs 1,32,800.

On the other hand, High Net Worth Individuals (HNIs) are required to apply for a minimum of two lots, or 3,200 shares, aggregating to an investment of Rs 2,65,600.

As per the company's red herring prospectus, of the 1,18,76,800 shares offered -- 18% is reserved for Qualified Institutions, 13.51% for Non-institutional buyers, 31.52% is reserved for Retail investors and 26.97% is reserved for Anchor investors.

Link Intime India Pvt. is the registrar for the Ganesh Infraworld IPO. On the other hand, Vivro Financial Services Pvt. is the book-running lead manager of the issue and Rikhav Securities is its market maker.

The IPO was subscribed 23.87 times on Monday

• Qualified Institutions: 3.51 times

• Non-Institutional Buyers: 20.84 times

• Retail Investors: 36.80 times

Day 3 subscription status will be added soon and will be updated at regular intervals.

The IPO was subscribed 1.50 times on Friday

• Qualified Institutions: NIL

• Non-Institutional Buyers: 1.25 times

• Retail Investors: 2.47 times

Ganesh Infraworld IPO Use Of Proceeds

Ganesh Infraworld Ltd. proposes to use the proceeds from the IPO to meet long-term working capital requirements. The funds will also be used for general corporate purposes.

Ganesh Infraworld Ltd. Business And Financials

Founded in 2017, Ganesh Infraworld Ltd. is a construction company. The company specialises in the development of industrial, civil, residential, and commercial buildings, along with road, railway, power and water distribution projects across India.

As of August 31, 2024, the company had 41 active projects with a combined value of around Rs 57,485.53 lakh, spread across 13 states.  

For the five-month period ended August 31, 2024, in the current financial year, the company’s revenue from operations stood at Rs 212.33 crore, while the net profit was Rs 15.37 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.