Ganesh Infraworld IPO – Complete Overview

Ganesh Infraworld Limited, established in 2017, is an Indian multidisciplinary construction firm offering services across industrial, residential, commercial, and civil sectors, including roads, railways, power, and water distribution projects. It operates in states like Rajasthan, Uttar Pradesh, Maharashtra, and more, serving clients such as Nirmala Developers and Magnum Ventures.

Business Segments:

1. Civil & Electrical Infrastructure: Specializes in residential and commercial buildings, high-voltage transformers, power stations, and distribution lines.

2. Road & Rail Infrastructure: Involves road construction and rail overhead equipment.

3. Water Infrastructure: Includes water treatment plants and pipe laying, with notable projects in Uttar Pradesh’s ‘Har Ghar Jal Mission.’

IPO Details:

• Opening Date: November 29, 2024

• Closing Date: December 03, 2024

• Price Range: Rs. 78 – Rs. 83 per share

• Issue Size: Rs. 98.58 crore (11,876,800 shares)

• Listing: December 06, 2024, on NSE SME

Financial Overview: Ganesh Infraworld has shown impressive growth, with revenue increasing by 116% and PAT rising by 198% for FY ending March 2024. However, the company faces challenges like revenue volatility and dependence on a few clients.

IPO Objective: The funds raised will meet long-term working capital requirements and general corporate purposes.

Peer Comparison: The company’s P/E ratio of 14.66x is lower than the industry average of 20.53x, suggesting an undervaluation.

Strengths:

• A strong order book and diverse project portfolio.

• Experienced management and end-to-end project execution capabilities.

Weaknesses:

• Revenue fluctuations and dependency on a few clients.

• Highly competitive industry.

Conclusion: Ganesh Infraworld IPO presents an attractive investment for long-term investors, with robust growth prospects but some risks. Potential investors should perform detailed research before investing.