Ganesh Infraworld Shares List At 90% Premium

Shares of Ganesh Infraworld Ltd. saw a stellar debut on the NSE SME platform, Emerge, on Friday. The stock opened at Rs 157.7 apiece on the NSE, with a premium of 90% over the issue price of Rs 83. 

Following the listing of the shares, bidders who were allotted at least a single lot of 1,600 shares in the IPO subscription would have made profits of Rs 1,19,520 with their investment of Rs 1,32,800 turning to Rs 2,52,320.

After listing at a premium, the stock further rallied 5% to hit the upper circuit limit at Rs 165.55 apiece. As many as 18.78 lakh shares changed hands on the stock exchange, while the total traded value stood at Rs 30.26 crore.

Ahead of the listing, Ganesh Infraworld IPO GMP was indicating a grey market premium of Rs 78, or 93.98%, as of 4:58 p.m. on Dec. 5. As per InvestorGain, the projected listing price of the initial public offering of Ganesh Infraworld at the latest GMP stood at Rs 161 per share.  

Notably, GMP or grey market price is not an official price quote for the stock and is based on speculation.

The initial share sale opened for subscription on Nov. 29 and closed on Dec. 3, following a three-day bidding period between the weekend.

The Ganesh Infraworld IPO saw a strong response from investors, with a mega demand from non-institutional investors. 

The issue saw massive subscription over the bidding period, with investors oversubscribing the offer by nearly 370 times. It was booked 865.82 times in the non-institutional investors’ category. Retail investors subscribed their portion by 274.48 times, while qualified institutional buyers subscribed their quota by 163.52 times.

The public offer was an entirely fresh issue of 118.77 lakh shares amounting to Rs 98.58 crore.

Ganesh Infraworld IPO price band was fixed between Rs 78 and Rs 83 per share. 

Share allotment for bidders was finalised on Dec. 4. Link Intime India Pvt. was the registrar for the Ganesh Infraworld IPO. On the other hand, Vivro Financial Services Pvt. was the book running lead manager of the issue and Rikhav Securities was its market maker.

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

Founded in 2017, Ganesh Infraworld is a construction company offering a wide range of services. The company specialises in the development of industrial, civil, residential, and commercial buildings, as well as road, railway, power and water distribution projects all over India.

As of Aug. 31, 2024, the company managed 41 active projects, with a total value of around Rs 574.85 crore. These projects span across 13 states and cover various sectors.

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.