Ganesh Green Bharat Ltd IPO: Review, Valuation, Date & GMP

Ganesh Green Bharat Limited IPO - Complete Overview

Ganesh Green Bharat Limited is an electrical contracting services firm that was incorporated in April 2016. The company provides a variety of services, such as solar and electrical goods and services supply, installation, testing, and commissioning (SITC) to different government agencies.

The organization has finished projects funded by several government initiatives, including the Saubhagya, KUSUM, and Saur Sujla Yojna programs. In addition, we have designed, constructed, installed, run, and managed water supply projects such as Har Ghar Jal (Jal Jeevan Mission) and Mukhya Mantri Nishchay Quality Affected Yojna.The company's Order Book as of March 31, 2024, consists of:

• Ten Solar System & Allied Services job orders

• 7 job orders for services related to electrical contracting

• Water Supply Scheme Projects: 1 Work Order

To guarantee conformity with industry and regulatory regulations, the company has a staff of ten engineers who are assisted by outside consultants and industry specialists. Government agencies from eight states, including Rajasthan Renewable Energy Corporation Limited (RRECL), Ahmedabad Municipal Corporation (AMC), and Gujarat Industrial Development Corporation (GIDC), are among the company's clients. It also offers solar PV modules for sale to businesses in the private sector.

The company employed about 39 people as of March 31, 2024, in addition to contract laborers working on project sites.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 5, 2024.

Let's take a closer look at the IPO's offerings below.

Ganesh Green Bharat Limited IPO Overview

Ganesh Green Bharat Limited IPO is an SME book-built issue of Rs.125.23 crore, wholly a Fresh Issue of 65.91 lac Shares (amounting to Rs.125.23 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 05, 2024, and conclude on July 09, 2024. The anticipated listing date for the IPO is Friday, July 12, 2024, and it will be held on the NSE and SME. The price band of the share is Rs.181 to Rs.190.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

Ganesh Green Bharat Limited's revenue climbed by 89.82%, while profit after tax (PAT) increased by 167.67% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company’s total revenue is Rs.1-100 crore.

• The net worth of the company has climbed by 1.30 cr %.

• The company's EBITDA is increased by 1.60 cr %.

• The total assets of the company rose by 98.02 lac %

• The Liabilities of the company climbed by 73.43 lac %.
  
  

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	15,029.82	8,786.05	8,835.50
Total Revenue	17,196.48	9,059.53	10,612.10
PAT	2,183.02	815.57	520.75
Net worth	5,727.64	2,707.34	2,707.34
Reserve & Surplus	3,906.64	3,402.91	2,587.34
Total Borrowings	5,370.17	2,738.89	2,247.06

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash flow in multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	17.08	236.98	845.65
Net Cash Flow Investing Activities	965.55	33.30	167.66
Net Cash Flow Financing Activities	960.65	262.72	1037.48

 

 

State-Wise Break-down of Revenue Generation

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Repayment of an outstanding debt, either in full or in part.

• Financing capital expenditures for the factory's installation of new equipment and machinery.

• Financing to satisfy the need for working capital.

• Corporate Goals in General.
  
  

 

Peers of Ganesh Green Bharat Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Solex Energy Limited	10	10.92	133.86
Waaree Renewable Technologies Limited	10	14.22	131.91
Zodiac Energy Limited	10	7.50	94.15

 

Evaluation

The price of this IPO is Rs.181 to Rs.190 for each share.

Evaluation of P/E Ratio

Considering the FY23 (concluded on 31 March 2024), EPS of Rs.11.99 from the last year, the resulting P/E ratio is 15.85x.

Considering the weighted EPS of Rs.8.15 for the last three years, the P/E ratio is 23.33x.

In simple words, the P/E ratio of the Ganesh Green Bharat Limited-IPO (15.85x and 23.33x) is much lesser than the industry’s average P/E ratio i.e. 219.35x. Hence the company currently has a low valuation as compared with its industry average. Investors might have to pay a lesser amount as compared with its peers to buy Shares in this IPO.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 219.35.

Particulars	P/E Ratio
Highest	289.53
Lowest	106.41
Average	219.35

 

IPO's Strengths

• It provides a wide variety of solutions.

• Utilizes its skills to take advantage of the robust industry tailwinds and solar energy growth potential.

• Internal design and implementation team with a proven track record.

• Senior management team and knowledgeable promoters.

• Consistent financial results.
  
  

IPO’s Weaknesses

• They submit bids for federally and state-funded projects, and they get paid by the work orders that are given to them. Any decrease in the amount of funding allotted to their industry sector could have an impact on how many projects the government agencies/bodies want to create in a certain time frame. Projects have a direct and substantial impact on their business granted by them.

• Government agencies/bodies select their projects through a competitive bidding process. Future project opportunities may not be available to them, which could have a negative impact on their operations and business.

• For project implementation, they depend on their internal team of engineers and designers. The loss of an individual or employees could negatively impact how well their tasks are carried out.

• The company uses a lot of operating cash. The outcomes of its operations could suffer if it doesn't have enough cash flow to cover its working capital requirements.

• Its actual income could be much lower than the projections shown in its order book, which would harm its operational results. It is also possible that its order book is not indicative of its future performance.

• Future and ongoing project delays could result in the termination of engineering, procurement, and construction ("EPC") agreements or excess costs, that might adversely affect its cash flows, operations, company, and financial standing.

• Payments for projects that are subcontracted or carried out through collaboration might get postponed due to the competence of the main, joint venture partner, or subcontractor.
  
  

IPO GMP Today

Ganesh Green Bharat Limited IPO’s latest GMP is Rs.190.

 

Ganesh Green Bharat Limited IPO timetable (Tentative)

The IPO is scheduled from July 5 to July 9, 2024, with allotment on July 10, refund initiation on July 11, and listing on July 12, 2024.

Events	Date
IPO Opening Date	July 5, 2024
IPO Closing Date	July 9, 2024
IPO Allotment Date	July 10, 2024
Refund initiation	July 11, 2024
IPO Listing Date	July 12, 2024

 

Ganesh Green Bharat Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 5, close on 9 July, and offer a total issue size of 6,591,000 Shares (amounting up to Rs.125.23 crore) comprising a wholly fresh issue size of 6,591,000 Shares of Rs.125.23 crore.

IPO Opening & Closing Date	July 5, 2024 to July 9, 2024
Face Value	Rs.10 per Share
Issue Size	6,591,000 Shares of Rs.125.23 crore
Offer for Sale	-
Fresh Issue	6,591,000 Shares of Rs.125.23 crore
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

Ganesh Green Bharat Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (600 Shares) amounting to Rs.114000, while for HNI investors, the minimum lot is 2 (1200 Shares) amounting to Rs.228000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
HNI (Min)	2 lots

 

Ganesh Green Bharat Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

 

Promoters and Management of Ganesh Green Bharat Limited IPO

• Ketanbhai Narsinhbhai Patel

• Rajendrakumar Narsinhbhai Patel

• Niravkumar Sureshbhai Patel 

• Shilpaben Ketanbhai Patel

Pre-issue Promoter shareholding	100%
Post-issue Promoter shareholding	73.42%

 

Ganesh Green Bharat Limited IPO Lead Managers

• Hem Securities Limited
  
  

Dividend Policy

The company has no formal dividend policy and has not paid any dividends in the last three years.

Conclusion

The company’s net worth, total assets, and liabilities have increased and EBITDA also rose in the last few financial years. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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