Ganesh Infraworld IPO Lists at 90% Premium, Extends Gains on NSE SME

Ganesh Infraworld Limited, established in 2017 and specializing in construction and allied services, made its debut on the NSE SME platform on Friday, 6th December 2024. The company excels in providing integrated EPC solutions across diverse infrastructure sectors, including industrial, residential, and commercial projects. Ganesh Infraworld serves clients across 13 states in India, showcasing its robust project execution and management capabilities.

Ganesh Infraworld Listing Details

• Listing Time & Price: At the market opening, Ganesh Infraworld shares were listed at ₹157.7 on NSE SME, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price.  Ganesh Infraworld had set its IPO price band from ₹78 to ₹83 per share.
• Percentage Change: By 11:37:59 AM IST, the stock was trading at ₹165.55, extending its gains to 4.98% over the issue price.

Ganesh Infraworld First-Day Trading Performance

• Price Range: Within a few minutes of listing, the stock price reached ₹165.55, a 4.98% gain with VWAP at ₹162.59.
• Market Capitalisation: As of 11:54 AM IST, the company's market capitalization stood at ₹707.25 crore.
• Trading Volume: The traded volume was 28.32 lakh shares with a traded value of ₹46.0 crore, with 100% deliverable quantity.

Ganesh Infraworld Market Sentiment and Analysis 

Market Reaction: Strong buying interest with the stock hit a high of ₹165.55.
Subscription Rate: The Ganesh Infraworld IPO was heavily oversubscribed by around 369.56 times, with NIIs leading at 865.82 times subscription, followed by retail investors at 274.48 times, and QIB at 163.52 times.
Pre-listing Signals: Grey market premium had indicated a 93.98% premium before listing.

Ganesh Infraworld Growth Drivers and Challenges

Expected drivers of future performance:

• Robust infrastructure demand across India's growing economy.
• Expansion into green energy and sustainable projects.
• Strong order book highlighting business continuity.
• Strategic presence across 13 states in India.
• Proven expertise in diverse infrastructure segments.

Potential challenges:

• Intense competition in the infrastructure EPC sector.
• Economic slowdown potentially impacting project funding.
• Rising costs affecting profit margins sustainability.
• Dependence on timely project approvals and payments.
• Sectoral cyclicality influencing long-term growth stability.

Ganesh Infraworld Utilization of IPO Proceeds 

Ganesh Infraworld plans to use the funds for:

• To meet long-term working capital requirements; and
• General Corporate Purposes.

Ganesh Infraworld Financial Performance

The company has shown strong growth:
 

• Revenue increased by 116% to ₹291.81 crore in FY2024 from ₹135.05 crore in FY2023
• Profit After Tax rose by 198% to ₹15.54 crore in FY2024 from ₹5.21 crore in FY2023
• For the period ending August 31, 2024, the company reported revenue of ₹212.33 crore and profit after tax (PAT) of ₹15.37 crore.
• As Ganesh Infraworld begins its journey as a listed entity, market participants will closely monitor its ability to deliver in the EPC space and its overall performance. The strong listing and continued momentum suggest positive investor sentiment towards the company's prospects in the construction sector.

As Ganesh Infraworld begins its journey as a listed entity, market participants will closely monitor its ability to deliver in the EPC space and its overall performance. The strong listing and continued momentum suggest positive investor sentiment towards the company's prospects in the construction sector.