The IPO market is abuzz with activity today as two highly anticipated offerings—one from the mainboard and another from the SME segment—reach their final day of bidding. Ganesh Infraworld IPO, representing the SME sector, has generated significant investor attention with an oversubscription of 21 times in just two days.
Suraksha Diagnostic IPO has also performed steadily on the mainboard, reflecting growing interest across market segments. As investors evaluate their options, let’s dive into the performance metrics of these two IPOs, including the latest subscription status and grey market premium (GMP) trends, to understand how they’re shaping up in the closing hours.
Ganesh Infraworld IPO
Ganesh Infraworld IPO is a book-built issue aimed at raising ₹98.58 crores. This is a fresh issue consisting of 118.77 lakh shares. The IPO opened for subscription on November 29, 2024, and will close on December 3, 2024. The allotment is expected to be finalized on December 4, 2024, with the listing scheduled on NSE SME for December 6, 2024.
The IPO requires a minimum lot size of 1,600 shares. Retail investors must invest at least ₹132,800, while HNIs must invest a minimum of ₹265,600 for 2 lots (3,200 shares).
| Offer Price | ₹78 to ₹83 per share |
| Face Value | ₹5 per share |
| Opening Date | 29 November 2024 |
| Closing Date | 3 December 2024 |
| Total Issue Size (in Shares) | 11,876,800 |
| Total Issue Size (in ₹) | ₹98.58 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1600 Shares |
| Listing at | NSE, SME |
Subscription Status
As of the end of Day 2, the Ganesh Infraworld IPO has been subscribed 21.53 times overall. The retail investor portion saw the highest enthusiasm, with subscriptions reaching 33.02 times. Non-institutional investors (NII) followed closely, subscribing 18.72 times their allocated quota.
The qualified institutional buyers (QIB) segment, typically slower in early bidding, has also shown strong interest with a 3.51x subscription. As of 16:28 IST, the IPO had received bids for 16,11,47,200 shares against the 74,86,400 shares on offer, reflecting robust demand across all investor categories. Source:Mint
GMP (Grey Market Premium)
As of December 3, 2024, the grey market premium (GMP) for Ganesh Infraworld IPO is ₹68. Based on this, the estimated listing price is ₹151 per share, implying a substantial premium over the cap price of ₹83.
Source: MoneyControl
Objectives of the IPO
The proceeds from the IPO will be utilized as follows:
- To meet long-term working capital requirements.
- For general corporate purposes.
Company Overview
Incorporated in 2017, Ganesh Infraworld Limited is a construction company with expertise across diverse sectors, including civil, industrial, residential, and commercial infrastructure. Its key business segments include:
- Civil and Electrical Infrastructure Projects:
- Construction of offices, hospitals, medical colleges, and commercial complexes.
- Electrification of substations, power distribution lines, and installation of heavy machinery in power plants.
- Road and Rail Infrastructure Development:
- Road construction projects involving excavation, concrete layering, and finishes like seal coats.
- Rail projects involving overhead equipment (OHE) design, testing, and commissioning.
- Water Infrastructure Development:
- Installation of water pipelines, reservoirs, and pumping systems.
- Key projects include participation in the “Har Ghar Jal Mission” in Uttar Pradesh during 2022-23.
The company provides end-to-end EPC services, including planning, design, material supply, and project execution. Operating across multiple states like Rajasthan, Maharashtra, and Uttar Pradesh, Ganesh Infraworld boasts a clientele that includes prominent firms such as Magnum Ventures Limited and Jain International Power Limited.
Financials
Ganesh Infraworld has demonstrated impressive financial growth. Between FY23 and FY24:
- Revenue increased by 116%.
- Profit After Tax (PAT) surged by 198%.
This substantial growth reflects the company’s operational efficiency and expanding project portfolio.
SWOT Analysis of Ganesh Infraworld
| STRENGTHS | WEAKNESSES |
| Diversified portfolio across civil, electrical, road, rail, and water projects. Established clientele and strong project execution capabilities. Robust financial performance with high revenue and profit growth. | Dependence on government contracts, which can be delayed due to regulatory or bureaucratic challenges. Limited operational history compared to older competitors. |
| OPPORTUNITIES | THREATS |
| Increased infrastructure spending by the government.Expansion into underserved markets with rising demand for EPC services. Growing focus on sustainable water and rail infrastructure projects. | Intense competition in the construction sector. Regulatory hurdles and delays in project approvals. Price volatility of construction materials impacting profit margins. |
Suraksha Diagnostic IPO
Suraksha Diagnostic’s IPO comprises an Offer for Sale (OFS) of 19,189,330 equity shares, valued at ₹846.25 crore at the upper price band of ₹441 per share. This OFS will see the promoters and investor shareholders divest their stakes with no fresh issue of shares. The price band for the IPO is set at ₹420-₹441.
Ahead of the IPO, the company raised ₹254 crore from anchor investors, further solidifying its appeal among institutional participants. The IPO closes on December 3, 2024.
| Offer Price | ₹420 to ₹441 per share |
| Face Value | ₹2 per share |
| Opening Date | 29 November 2024 |
| Closing Date | 3 December 2024 |
| Total Issue Size (in Shares) | 19,189,330 |
| Total Issue Size (in ₹) | ₹846.25 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 34 Shares |
| Listing at | NSE, SME |
Subscription Status
The IPO witnessed moderate investor interest during the first two days.
- Day 1 (November 29, 2024): The IPO was subscribed 11% overall. The Retail Individual Investor (RII) segment saw a subscription rate of 20%, while the Non-Institutional Investors (NII) quota was subscribed 4%. The Qualified Institutional Buyers (QIB) segment remained unsubscribed.
- Day 2 (December 2, 2024): Subscription levels increased to 25%. Retail investors led the charge with a 45% subscription in their reserved quota, while the NII segment followed with 13%. The QIB portion remained unsubscribed by the end of the second day.
According to BSE data, the IPO received bids for 34 lakh shares against the 1.34 crore shares available for subscription. Source: Mint
Grey Market Premium (GMP)
Suraksha Diagnostic’s IPO currently shows a grey market premium (GMP) of ₹0, indicating no premium over its issue price. This reflects subdued interest from grey market participants, which may influence listing expectations.
Objectives of the IPO
The proceeds from this IPO will not benefit the company directly. Instead, as it is an Offer for Sale (OFS), the funds raised will go entirely to the selling shareholders.
Company Overview
Established as a comprehensive diagnostic service provider, Suraksha Diagnostic operates through an expansive network:
- A central reference laboratory and 8 satellite laboratories.
- 194 customer touchpoints, which include 48 diagnostic centers and 146 franchise-operated sample collection centers.
Its footprint spans states like West Bengal, Bihar, Assam, and Meghalaya. The company offers services in pathology, radiology, and medical consultations.
Financial Strength
Suraksha Diagnostic’s financial trajectory has been volatile:
- Revenue Trends: Revenues have fluctuated from FY22 to FY24 but showed a notable recovery in FY24.
- Recent Growth: In Q1 FY25, revenues reached ₹60.73 crore, indicating improved performance and service demand.
SWOT Analysis of Suraksha Clinic and Diagnostic
| STRENGTHS | WEAKNESSES |
| Extensive operational network across multiple states. Comprehensive service portfolio, including pathology and radiology. Strong market presence in underserved regions like Northeast India. | Volatile revenue performance in recent financial years. Dependence on a limited geographical region for a major portion of its revenues. |
| OPPORTUNITIES | THREATS |
| Rising demand for diagnostic services across Tier 2 and Tier 3 cities. Potential to expand into other regions and introduce more advanced diagnostic services. | Intensified competition from established national diagnostic chains. Regulatory challenges and price caps in the healthcare sector. Limited investor confidence, as reflected in the zero GMP and moderate subscription levels. |
Conclusion:
Both Ganesh Infraworld and Suraksha Diagnostic IPOs have garnered attention for different reasons. While Ganesh Infraworld’s IPO has shown robust investor interest and significant oversubscription, Suraksha Diagnostic’s IPO has seen moderate traction, reflecting mixed sentiment.
The grey market premiums for both IPOs highlight contrasting expectations, with Ganesh Infraworld indicating positive listing potential and Suraksha Diagnostic suggesting subdued demand. Before deciding, it is crucial to evaluate the fundamentals and align them with long-term investment goals.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
