Ganesh Green Bharat SME IPO: 10 Key You Need to Know
The SME IPO of Ganesh Green Bharat is set to open for subscription today, offering investors a new opportunity in the renewable energy sector. The company aims to raise approximately Rs 125 crore through this IPO, with plans to list the shares on the NSE SME platform. Here’s everything you need to know before subscribing to the issue.
1. About Ganesh Green Bharat
Ganesh Green Bharat has diversified its business across multiple verticals, positioning itself as a significant player in the renewable energy and electrical contracting services sectors.
Solar System and Allied Services
The company provides a range of services related to solar energy systems, including installation, maintenance, and allied services.
Electrical Contracting Services
Ganesh Green Bharat also engages in electrical contracting services, catering to various infrastructure projects.
Water Supply Scheme Projects
Additionally, the company undertakes water supply scheme projects, contributing to essential infrastructure development.
Manufacturer of Solar Photo-Voltaic Modules
As a manufacturer of solar photovoltaic modules, Ganesh Green Bharat enhances its portfolio with in-house engineering and design capabilities.
2. Industry Overview
India’s renewable energy sector has immense potential, driven by abundant sunlight and significant investments.
Solar Energy Potential
India enjoys sunshine for most of the year, making solar energy a viable and lucrative option for energy production.
Hydropower Sector
The hydropower sector also holds vast potential, particularly in the northeastern states, contributing to the country’s renewable energy mix.
Investment in Renewable Energy
Since 2014, over Rs 5.2 lakh crore ($70 billion) has been invested in India’s renewable energy sector, underscoring its growing importance.
3. Ganesh Green Bharat IPO Size
The IPO comprises a fresh equity issue of 65.91 lakh shares, aiming to raise around Rs 125 crore. This infusion of capital is expected to bolster the company’s growth and expansion plans.
4. Ganesh Green Bharat IPO Price Band
The company has set the IPO price band at Rs 181-190 per share. Investors can bid for shares in lots of 600.
5. Ganesh Green Bharat Financial Performance
For the period ending March 2024, Ganesh Green Bharat reported total revenues of Rs 172 crore and a net profit of Rs 19.88 crore, reflecting its solid financial standing and growth potential.
6. Objects of the Offer
The net proceeds from the IPO will be utilized for several key purposes:
Repayment of Debt
A portion of the funds will be allocated to repaying the company’s existing debt, improving its financial health.
Funding Capital Expenditure
The company plans to invest in capital expenditure to enhance its operational capabilities and expand its service offerings.
Working Capital Requirements
Additional funds will be used to meet the company’s working capital needs, ensuring smooth operational flow.
General Corporate Purposes
The remaining proceeds will be directed towards general corporate purposes, supporting overall business growth and sustainability.
7. Lead Managers and Registrar
Hem Securities is acting as the lead manager for the IPO, while Kfin Technologies serves as the registrar, ensuring a smooth and efficient process for investors.
8. Issue Structure
The IPO is structured to attract a diverse range of investors:
QIB Investors
About 50% of the offer is reserved for Qualified Institutional Buyers (QIBs).
Retail Investors
35% of the offer is allocated to retail investors, providing ample opportunity for individual participation.
Non-Institutional Investors
The remaining 15% is set aside for non-institutional investors, ensuring a well-rounded investor base.
9. Important Dates
Key dates for the Ganesh Green Bharat IPO are as follows:
IPO Opening and Closing Dates
- Opening Date: July 5
- Closing Date: July 9
Final Allotment and Listing
- Final Allotment: July 10
- Listing Date: July 12
10. Ganesh Green Bharat GMP
Ahead of the issue opening, Ganesh Green Bharat’s shares were trading with a Grey Market Premium (GMP) of Rs 290 in the unlisted market, indicating strong investor interest and potential upside.
Conclusion
The Ganesh Green Bharat SME IPO presents a promising investment opportunity in India’s burgeoning renewable energy sector. With a diversified business model, solid financial performance, and strategic growth plans, the company is well-positioned for future success. Investors should consider the key aspects outlined above to make an informed decision.
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