FMCG company Ganesh Consumer Products, earlier known as Ganesh Grains, has filed preliminary papers with the SEBI to raise funds via initial public offering and give exit to funds owned by Motilal Oswal Alternates.
The IPO is a combination of fresh issuance of equity shares worth Rs 130 crore, and an offer-for-sale of 1.24 crore shares by promoters and investors.
Promoter Manish Mimani, and his wife Madhu Mimani will be selling 30.91 lakh shares in the offer-for-sale. Further, India Business Excellence Fund II and IIA, owned by Motilal Oswal Alternates (Motilal Oswal Private Equity), will exit Ganesh Consumer by selling their entire holding of 93.5 lakh shares (representing 25.71 percent of pre-offer paid-up capital).
Promoters own 74.29 percent stake in the company.
The Kolkata-headquartered company may raise Rs 26 crore via pre-IPO placement before the filing of red herring prospectus with the Registrar of Companies.
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Ganesh Consumer Products claimed to be the third largest brand of packaged whole wheat flour (atta) and largest brand of wheat-based derivatives (maida, sooji, dalia) in East India, in terms of value sold in FY24. It has a 41% share in terms of value sold in West Bengal for wheat-based products.
The company that competes with listed peers like Patanjali Foods, Adani Wilmar, and Agro Tech Foods will utilise fresh issue proceeds for repaying debt, setting up of a roasted gram flour and gram flour manufacturing unit in Darjeeling, and general corporate purposes.
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On the financials front, it has seen a marginal decline in net profit at Rs 27 crore for the fiscal 2024, down from 27.1 crore in previous fiscal. However, revenue in the same period increased by 24.3 percent to Rs 759 crore from Rs 610.8 crore. In three months period ended June 2024, profit stood at Rs 13.4 crore on revenue of Rs 189.5 crore.
DAM Capital Advisors, IIFL Capital Services, and Motilal Oswal Investment Advisors are the merchant bankers for the public issue.
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