 "Bumper debut: Ganesh Infraworld IPO lists at 90% premium, hits upper limit")
Ganesh Infraworld IPO listing: Shares of construction company Ganesh Infraworld made a solid debut on the NSE SME today, continuing their upward momentum to hit the upper circuit within less than 5 minutes of listing. The company's stock listed at Rs 157.70 apiece, a 90 per cent premium over the IPO allotment price of Rs 83.
After listing, the stock gained an additional 4.98 per cent, surging 99.45 per cent from the issue price to reach the upper circuit of Rs 165.55 apiece on the NSE SME. During the session, nearly 0.13 million shares, valued at Rs 21.84 crore, were traded before trading was halted.
Notably, the capital market regulator Securities and Exchange Board of India (Sebi) has capped listing gains for SME stocks at 90 per cent of the issue price.
The Ganesh Infraworld IPO listing aligns with grey market trends, as the company's shares were commanding a solid premium in unofficial markets. Ahead of the listing, Ganesh Infraworld shares were trading at Rs 161 apiece, resulting in a grey market premium (GMP) of Rs 78, or 93.98 per cent, over the issue price, according to sources tracking grey market activities.
Ganesh Infraworld IPO, which ended its subscription period on Tuesday, December 3, 2024, received massive demand from investors, with the issue being oversubscribed 369 times. Rs 98.58-crore offering comprises an entirely fresh issue of 11,876,800 shares, priced in a band of Rs 78-83 per share, with a lot size of 1,600 shares. The basis of allotment for the IPO was finalised on Wednesday, December 4, 2024.
Ganesh Infraworld also announced that it had raised Rs 26.59 crore from anchor investors through bidding concluded on November 28, 2024. Link Intime India is the registrar for the issue, while Vivro Financial Services is the book-running lead manager for the Ganesh Infraworld IPO.
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In its Red Herring Prospectus (RHP), the company stated that it intends to use the net proceeds from the fresh issue to meet long-term working capital requirements and for general corporate purposes.
Ganesh Infraworld is a construction company providing comprehensive EPC services nationwide. With expertise in industrial, civil, residential, and commercial construction, the company also undertakes infrastructure development projects, including roads, railways, power, and water distribution systems.