The SME IPO of Ganesh Green Bharat opens for subscription today, offering investors a significant opportunity in the renewable energy sector. The subscription period will close on July 9, with the company targeting to raise approximately Rs 125 crore through this public issue. Below are ten crucial details prospective investors should be aware of before subscribing to the IPO:
1. About Ganesh Green Bharat
Ganesh Green Bharat is a diversified service provider with operations spanning multiple verticals:
- Solar System and Allied Services
- Electrical Contracting Services
- Water Supply Scheme Projects
- Manufacturing of Solar Photovoltaic Modules
The company’s robust in-house engineering and design capabilities allow it to offer a wide range of products and solutions tailored to the needs of its customers across these sectors.
2. Industry Overview
India possesses immense potential for solar energy utilization due to its year-round sunshine. The hydropower sector also holds significant promise, especially in the northeastern states. Since 2014, over Rs 5.2 lakh crore (approximately $70 billion) has been invested in India’s renewable energy sector, highlighting the country’s commitment to sustainable energy development.
3. IPO Size
Ganesh Green Bharat’s IPO consists entirely of a fresh equity issue of 65.91 lakh shares, with the company aiming to raise around Rs 125 crore.
4. Price Band
The shares are being offered within a price band of Rs 181-190 per share. Investors can place bids for a minimum of 600 shares, equivalent to one lot.
5. Financial Performance
For the fiscal year ending March 2024, Ganesh Green Bharat reported total revenues of Rs 172 crore and a net profit of Rs 19.88 crore, demonstrating a strong financial performance.
6. Objectives of the Offer
The net proceeds from the IPO will be allocated towards:
- Repayment of debt
- Funding capital expenditure
- Meeting working capital requirements
- General corporate purposes
7. Lead Managers and Registrar
Hem Securities is acting as the lead manager for the IPO, with Kfin Technologies appointed as the registrar.
8. Issue Structure
The IPO allocation is structured as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 35% for retail investors
- 15% for non-institutional investors
9. Important Dates
- IPO Opening Date: July 5
- IPO Closing Date: July 9
- Final Allotment Date: Expected on July 10
- Listing Date: Expected on July 12
10. Grey Market Premium (GMP)
Ahead of the IPO opening, Ganesh Green Bharat’s shares were trading at a Grey Market Premium (GMP) of Rs 290 in the unlisted market, indicating strong investor interest and positive market sentiment.
Conclusion
The Ganesh Green Bharat IPO presents an attractive investment opportunity in India’s burgeoning renewable energy sector. With a diversified business model and solid financial performance, the company is well-positioned for growth. Investors are encouraged to consider these key details carefully before making an investment decision.