Contact Us
Contact Us

October 20, 2022

Ganesh International

From Partnership Firm to Listed Powerhouse

Case Study

Client Overview: Ganesh International, originally a partnership firm based out of Kolkata, was a well-established player in the infrastructure and construction industry. Despite its success, the company faced limitations in scaling, accessing capital, and transforming into a more structured and robust business entity. With VD Business Labs’s (VDBL) support, Ganesh International has now evolved into Ganesh Infraworld Limited, a publicly listed company on the National Stock Exchange (NSE), achieving a remarkable transformation that is nothing short of extraordinary.

Challenge: Ganesh International’s main challenge was its inability to scale operations beyond a certain point due to the need for proper infrastructure, governance, and access to funding. While the company was performing well in the infrastructure sector, the partnership model limited growth potential, hindered investor confidence and restricted their ability to pursue more prominent, more ambitious projects.

Solution by VDBL: VDBL entered the picture at a pivotal moment, offering expertise in scaling the business through professional governance, access to capital, and strategic guidance. The key solutions implemented by VDBL included:

Key strategic actions taken by VDBL included:

· Corporate Transformation:

VDBL guided Ganesh International through a comprehensive rebranding and restructuring process, transitioning from a partnership firm to a corporate entity named Ganesh Infraworld Limited. This included setting up a group-owned office of 6000 sq. ft. in the prime business district of Kolkata, replacing the small rented office space of 1000 sq. ft.

· Office Transformation:

The company’s new headquarters symbolized its growth, now housing various departments and a fully professionalized workspace.

· Pre-IPO Valuation and Capital Raise:

  • The first step was a pre-IPO valuation at ₹36 Crore, followed by a second pre-IPO round at ₹100 Crore.
  • With VDBL’s expertise, Ganesh Infraworld Limited successfully launched its IPO at a ₹355 Crore valuation, which was a significant leap forward, eventually resulting in a listing at ₹700 Crore market cap, making Ganesh Infraworld one of the most talked-about companies in the SME sector.

· IPO Success:

VDBL’s strategy for a successful IPO included building confidence among investors, streamlining corporate governance, and providing the correct market positioning. The results were beyond expectations:

  • The IPO oversubscribed 866 times in the QIB category and 360 times across all categories combined.
  • The issue raised over ₹29,000 Crore, setting a record for the highest bid collection ever in an SME IPO.
  • Upon listing, the company saw listing gains of 90%, and the stock hit the upper circuit immediately after listing, closing nearly double the issue price.

· Strong Order Book and Client Expansion:

Thanks to the restructuring and the influx of capital, Ganesh Infraworld was able to add major clients such as Adani Group, Welspun Group, and Shapoorji Group to their growing ecosystem.

The company also secured banking support of ₹50 Crore from ICICI Bank, further strengthening its financial position.

· Operational Overhaul:

VDBL’s intervention included:

  • Establishing SOPs (Standard Operating Procedures) across all departments.
  • Internal audit systems were implemented to ensure compliance and accountability.
  • MIS reporting was introduced to enhance decision-making tracking performance across regions.
  • A CEO was appointed for each of the three regions in India, streamlining operations and ensuring that each region operated efficiently.

· Growth in Topline and Bottomline:

The results of these transformations were reflected in Ganesh Infraworld’s financials:

  • Topline Growth: The company’s revenue grew from ₹80 Crore in FY21 to ₹290 Crore in FY24, and the FY25 run rate is expected to hit ₹500 Crore.
  • Bottomline Growth: The PAT (Profit After Tax) surged from ₹4 Crore to ₹30 Crore year-on-year, showcasing operational efficiencies, reduced debt servicing, and improved profitability.

Key Achievements and Milestones:

· Revolutionizing Infrastructure:

With the support of VDBL, the company now boasts a strong order book valued at ₹700 Crore+, with projects under execution and new opportunities being secured regularly.

· Client and Project Expansion:

Major clients like Adani Group, Welspun Group, and Shapoorji Group added to the ecosystem, leading to more opportunities and an expanding project portfolio.

· Sustainability and Employee Welfare:

Ganesh Infraworld has upgraded its HR policies to match those of next-gen unicorns, with health insurance and project insurance for employees.

The company has also taken proactive steps towards sustainability, including a new initiative to lower electricity costs by installing a solar power plant with Tata Power.

· Strategic Bidding and Government Tenders:

The company has now entered the government tendering space, leveraging synergies created by VDBL and resources from the newly onboard investors.

Impact and Results:

With the strategic support of VDBL, Ganesh Infraworld Limited has undergone a total transformation. Key impacts include:

  • Growth in Market Capitalization:
  • From a ₹36 Crore valuation to a ₹700 Crore market cap post-listing.
  • Topline Growth of 3.5x:
    • From ₹80 Crore to ₹290 Crore in just 3 years, with a projected run rate of ₹500 Crore.
  • PAT Growth of 7.5x:
    • From ₹4 Crore to ₹30 Crore, showcasing improved profitability.
  • Strong Corporate Presence and Expansion:
    • A 6000 sq. ft. group-owned office and the implementation of robust operational systems like SOPs, internal audits, and MIS reporting have propelled the company into a more structured, scalable, and sustainable entity.
  • IPO Milestone:
    • A record-breaking SME IPO, with an oversubscription of 866 times in the QIB category and 360 times across all categories.

Looking Ahead:

Ganesh Infraworld Limited’s journey is just beginning. With Krishna (VDBL) at the helm, guiding them toward the next step in their transformation, the company is now fully equipped to continue expanding and positioning itself for even greater success. The future holds immense promise as they continue to build on this solid foundation to become a dominant player in the infrastructure and construction sector.

This case study highlights Ganesh Infraworld’s remarkable journey, driven by strategic guidance from VDBL. It demonstrates the power of vision, action, and impact in transforming a business into a publicly listed entity. Let me know if you need further adjustments!