Ganesh Infraworld shares hit 5% upper circuit after listing at 90% premium to IPO price

Shares of small and medium enterprise (SME) Ganesh Infraworld Ltd made an impactful trading debut on Friday, December 6, with the stock listing at a 90% premium on the NSE SME platform, Emerge.

Ganesh Infraworld stock opened at ₹157.7 apiece compared to the initial public offering (IPO) price of ₹83 per share. Within minutes of the opening of the session, the stock price rallied further up to 5% to hit the session’s high of ₹165.55 apiece, nearly doubling the investors’ money.

As the minimum quantity to apply for the Ganesh Infraworld IPO was 1,600 shares, successful bidders who were allotted shares in the primary issue managed listing gains of at least ₹1.19 lakh (₹74.70 x 1,600) as soon as the stock started trading on the exchange.

Experts were expecting a solid listing from Ganesh Infraworld as the ₹98.58-crore IPO had seen huge demand from investors when it was open for bidding during November 29 to December 3.

The Ganesh Infraworld IPO was subscribed almost 370 times during the three-day bidding period, with bids received for 276.67 crore shares compared with 74.86 lakh shares on offer.

The public issue was oversubscribed more than 274 times in the retail investors’ category. Non-institutional investors’ (NII) category was the most subscribed at around 866 times, while qualified institutional buyers’ (QIB) portion was overbid by almost 164 times.

The Ganesh Infraworld IPO was a 100% book-built issue, made up entirely of a fresh issuance of 118.77 lakh shares. The IPO price band was fixed at ₹78 to ₹83 per share. Shares were offered in a lot size of 1,600 units.

Ahead of the launch of the IPO, Ganesh Infraworld had also raised ₹26.59 crore in its anchor investor round. At a meeting held on November 28, the IPO committee of the company had finalised allocation of a total of 32.03 lakh shares to as many as 14 anchor investors at an average price of ₹83 apiece. Some prominent investors in the company include names like Invicta Continuum Fund I, Finavenue Growth Fund, Next Orbit Growth Fund, Persistent Growth Fund, among others.

The company had earlier said that it intended to utilise the gross proceeds raised through the IPO to meet long-term working capital requirements and for general corporate purposes.

Ganesh Infraworld had appointed Vivro Financial Services Pvt. Ltd as the book-running lead manager of the IPO, while Link Intime India Pvt. Ltd was the registrar for the issue. The market maker for the IPO was Rikhav Securities.

About Ganesh Infraworld

Incorporated in 2017, Ganesh Infraworld Ltd is an engineering, procurement and construction (EPC) company that specializes in the construction of industrial, civil, residential, and commercial buildings, as well as road, railway, power, and water distribution projects across India.