The initial public offering (IPO) of Ganesh Infraworld Ltd continued to get strong response from investors from the second day (Day 2) of bidding process. As per NSE data available on Monday, retailers, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) submitted 62,358, 3,442 and 2 applications, respectively.
The SME issue received 12,94,57,600 bids on Day 2 against 86,73,600 shares on offer with an overall subscription of 14.93 times. The initial share sale, which opened on November 29, will conclude on December 3 (Tuesday). The company aims to raise Rs 98.58 crore via its public offer.
The price band has been fixed between Rs 78 and Rs 83 per share. The minimum lot size for an application is 1,600 shares. And, the minimum amount of investment required by 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.
Vivro Financial Services Private Limited is the book-running lead manager of the issue, while Link Intime India Pvt Ltd is the registrar.
Latest grey market premium (GMP)
In the grey market, unlisted shares of Ganesh Infraworld were last seen trading at a premium of 60.24 per cent (at Rs 133) against an issue price of Rs 83 (upper price band). Today's GMP was higher than last Friday's expected listing pop of 42.17 per cent. The stock will be listed on the NSE's SME platform, Emerge and the tentative listing day will be December 6.
Brokerage view
"The company has 41 projects in its order book as of August 24, covering road, rail, water, electricity, and civil infrastructure. This ensures sustainable growth and solid income visibility. Its strategic emphasis on effective working capital management and the focused allocation of IPO proceeds for long-term requirements allow the business to expand operations, land bigger contracts, and fortify its position as a leader in the infrastructure industry. At the upper band of Rs 83, the issue is valued at a P/E ratio of 22.81x based on an FY24 EPS of Rs 3.64. And, based on annualised FY25 earnings the issue is valued at a P/E ratio of 9.61. We are recommending a 'Subscribe' for this issue," said Arihant Capital Markets.
Ganesh Infraworld is a construction company offering a wide range of construction-related services.