Ganesh Infraworld IPO: Price, Valuation, and GMP

Ganesh Infraworld IPO-Complete Overview

Ganesh Infraworld IPO under the SME IPO category is a book-built issue of Rs.98.58 crore by Ganesh Infraworld Limited, incorporated Ganesh Infraworld Limited established itself in 2017 and is a multidisciplinary construction firm providing a vast array of services linked with construction. It specializes in the construction of industrial, residential, civil, and commercial buildings, as well as roads, railway, power, and water distribution projects across India.

Major Business Segments:

1. Civil and Electrical Infrastructure Projects

This segment provides for residential and commercial buildings such as offices, hospitals, medical colleges, and towers.

The company also has special competence in high-voltage transformers, installation of heavy machinery in power stations, electrification of substations, and power distribution lines.

2. Road and Rail Infrastructure Development Projects

Road projects excavation, backfilling, and construction of concrete and bituminous roads, including finishing with seal and tack coats.

Rail projects concern the design, erection, testing, and commissioning of overhead equipment for railway operations.

3. Water Infrastructure Development Projects

Includes pipe laying and pumping-system setup, water treatment plants, and reservoirs. A significant project was participation in the ‘Har Ghar Jal Mission’, Uttar Pradesh, 2022-23.

A fully integrated EPC (Engineering, Procurement, and Construction) approach to management is offered, ranging from end-to-end planning, designs, execution, and supply of materials for civil, electrical, mechanical, and industrial sectors projects.

Nirmala Developers, Celica Motocorp Private Ltd., JD Cables Private Ltd, Magnum Ventures Limited, Raikela Iron Ore Mines, Jain International Power Ltd, and others are the company’s client base.

Ganesh Infraworld Limited has operational states like Rajasthan, Uttar Pradesh, Maharashtra, Odisha, Haryana, Jharkhand, Bihar, Jammu & Kashmir etc.

 

Ganesh Infraworld IPO Overview

This Ganesh Infraworld Limited IPO date is 29 November 2024, and its ‘initial public offering’ will end on 03 December 2024. 

The Rs.98.58 crore new SME IPO  comprises a wholly fresh issue of 118.77 lac Shares. 

This upcoming IPO date is from November 29 to December 03, 2024. Ganesh Infraworld IPO Price is Rs.78 to Rs.83 for each Share. 

The expected IPO listing date is Friday, 06 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here

Company Financial

The company’s revenue grew by 116% and PAT increased by 198% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

(Amount in lac)

 

Segment-wise Revenue Breakdown  

(Amount in lac)

 

Contract-wise Revenue Breakdown  

(Amount in lac)

 

Client-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To meet long-term working capital requirements.

• General corporate purposes.

 

Peers of Ganesh Infraworld Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

PE is calculated by dividing CMP as of 14 November 2024.

Evaluation

The Ganesh IPO price is Rs.78 to Rs.83 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.5.66 from the last year, the resulting P/E ratio is 14.66x.

Considering the weighted EPS of Rs.3.44 for the last three years, the P/E ratio is 24.12x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 20.53x.

 

In simple words, the P/E ratio of this IPO (14.66x), compared with the industry’s average P/E of 20.53x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry. 

 

IPO's Strengths 

• A healthy order book replete with continuous orders from large engineering and construction firms.

• Well-equipped to offer end-to-end project management and execution capacities.

• Able to manage a diverse segment of infrastructure construction projects.

• A well-experienced management team.

 

IPO’s Weaknesses

• Revenues Volatilities: The revenue decreased by 62% from FY23 through FY24, which would certainly be alarming for the company's investors, considering its capability of exhibiting consistent growth.

• Dependency on a handful of Clients: There are high portions of revenues coming from fewer clients, and if those are disrupted due to certain reasons, it could pose a risk to the business.

• Very Competitive Industry: Infrastructure is also a highly competitive industry where continuous innovation and efficient cost management are necessary to maintain a leading position.

• Seasonal and Economic Factors: Construction is itself a result of monsoons and cycles of the economy which would determine the timelines of the projects and cash flow. 

 

 

Ganesh Infraworld IPO GMP 

Ganesh Infraworld Ltd IPO GMP today is Rs.11 as of 27 November 2024. With a price of Rs.83 per Share, the expected Ganesh Infraworld IPO listing price is Rs.94 when writing this information.

Ganesh Infraworld IPO Timetable (Tentative)

The IPO opening date is from November 29 to December 03, 2024, with allotment on December 04, refund initiation on December 05, and listing on December 06, 2024.

 

Ganesh Infraworld IPO Details 

The IPO with a Face Value of Rs.5 per share offers a total issue size of 11,876,800 Shares (Rs.98.58 Cr).

Ganesh Infraworld IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,32,800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,65,600.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Ganesh Infraworld Ltd.

• Vibhoar Agrawal

• Rachita Agrawal
  
  

 

IPO Lead Managers

• Vivro Financial Services Private Limited.
  
  

Dividend Policy

The company has not paid any dividends in the last three FYs.

Conclusion

Ganesh Infraworld IPO would be an entry investment in the growing nature of the infrastructure company with its huge order book and running projects. Along with that the company offers fairly priced valuations across its industry peer group; however, investors should look at typical issues of customer concentration and revenue variability. This would probably be best for long-term investors with a considerable risk appetite. Deep research into the options is recommended before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

DISCLAIMER: NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing. 

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