Ganesh Infraworld IPO: Investors Celebrate 99.46% Gains on Day One of Listing
Ganesh Infraworld Limited's IPO made a strong debut on the NSE SME Exchange, offering investors a 99.46% return on the first day.
The initial investment of Rs. 1,32,800 has earned a profit of Rs. 1,32,080.
Indian stock market indices continued to decline in Friday’s session. At 2:40 pm, the Bombay Stock Exchange index, Sensex, fell by 120 points to 81,640. The National Stock Exchange index, Nifty, dropped more than 40 points and was trading at the 24,660 level.
In this context, an IPO that entered the market today made a splash. Notably, it registered a 90 percent premium. It didn’t stop there—after hitting the upper circuit again, it increased by 99.46 percent above the issue price on the first day. As a result, investors saw good profits.
It is remarkable that such returns are coming on investment again. Let’s take a closer look at this.
This IPO is for Ganesh Infraworld Limited, which was listed on the NSE SME Exchange on Friday.
The issue price was Rs. 83, which reflects a 90 percent premium compared to Rs. 157.70. The stock finally hit a high of Rs. 165.55 after hitting the upper circuit of 4.5 percent again. Its market value reached Rs. 181 crore.
Regarding the IPO, the issue price was set between Rs. 78 and Rs. 83, but it was finalized at Rs. 83. Investors were required to purchase at least 1,600 shares per lot, with a minimum investment of Rs. 1,32,800. The IPO opened for subscription on November 29 and closed on December 3.
It was listed on the market on December 6. This IPO received a strong response, with a subscription rate of 369.56 times. A significant premium was also observed in the gray market. It is worth noting that the stock was listed in line with expectations.
Ganesh Infraworld is a construction firm that started in 2017.
In terms of profits, the total investment for a single lot of 1,600 shares is Rs. 83 × 1,600 = Rs. 1,32,800. At the listing price of Rs. 157.70, the total value would be Rs. 157.70 × 1,600 = Rs. 2,52,320. After reaching the upper circuit, the value is Rs. 165.55 × 1,600 = Rs. 2,64,880.
The initial investment of Rs. 1,32,800 has earned a profit of Rs. 1,32,080. Those who received this IPO lot have made excellent returns.
