The initial public offering of Ganesh Consumer Products opened for public bidding on September 22. The Rs 409-crore IPO has been subscribed 12 percent on Day 1.
The maiden public issue of the Kolkata-based FMCG company received bids for 10.36 lakh shares, as against the offer size of more than 89 lakh shares, according to data on NSE at 10.50 am. Retail investors have booked 20 percent of their reserved [portion, while Non Institutional Investors (NII) subscribed 6 percent of the portion kept for them. Qualified Institutional Buyers (QIB) are yet to make any substantial bid for the IPO.
Ganesh Consumer Products IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with around 3 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The GMP quoted by the site has fallen from the 8 percent cited last week.
According to IPO Watch, the unlisted shares of the company were trading with nearly 6 percent GMP.
Key things to know about Ganesh Consumer Products IPO:
The Kolkata-based FMCG company moved to the capital markets to raise Rs 408.80 crore through a fresh issue of shares worth Rs 130 crore, and an offer for sale (OFS) of shares worth Rs 278.8 crore by the existing promoters at a price band of Rs 306-322 per share.
Investors can bid for a minimum of 46 shares, requiring an investment of Rs 14,812 at the upper price band, and in multiples thereafter. The allotments will likely be finalized by September 25, and the shares are scheduled to be listed on stock exchanges on September 29.
DAM Capital Advisors, IIFL Capital Services, and Motilal Oswal Investment Advisors are merchant bankers managing the Ganesh Consumer Products IPO.
How will IPO proceeds be used?
The company that produces consumer staples like wheat flour, maida, sooji and dalia, along with packaged instant food mixes, spices, and ethnic snacks, plans to spend Rs 60 crore of the fresh issue proceeds for repayment of certain borrowings.
Further, Rs 45 crore will be used for setting up of a roasted gram flour and gram flour manufacturing unit in West Bengal’s Darjeeling, and the remaining amount will be set aside for general corporate purposes.
Should you apply?
Ganesh Consumer Products Limited (GCPL) is the third largest brand in packaged whole wheat flour (atta) by value in fiscal year 2025, noted HDFC Securities. “It holds the largest market share in wheat-based derivatives such as maida, sooji, and dalia across East India. GCPL is also a top two player in packaged gram-based flour products, with market shares of approximately 43.4% in sattu and 4.9% in besan within East India. In West Bengal specifically, the Company commands about 40.5% value share for wheat-based products, including wheat flour, maida, sooji, and dalia,” the brokerage added.
It however highlighted that the key concerns include indebtedness, any slowdown or interruption to manufacturing operations or under-utilization of existing or future manufacturing facilities, and more.
Ganesh Consumer Products IPO Anchor Book:
Before the IPO opened for public bidding, Ganesh Consumer Products said that it has offloaded shares worth Rs 122.3 crore through its anchor book on September 19. In its exchange filing, the company said that it has finalized the allocation of nearly 38 lakh shares to 13 anchor investors including PGIM India, LC Pharos Multi Strategy Fund, Saint Capital Fund, Citigroup Global Markets, BNP Paribas Financial Markets, Subhkam Ventures and Bengal Finance at the upper price band.
Subhkam Ventures, Bengal Finance, and Samsung India were the largest investors in the anchor book, each investing Rs 18.98 crore each for 5.89 lakh shares each, while ace investor Madhusudan Kela-backed Singularity Equity Fund, along with Sanshi Fund, PGIM India, LC Pharos Multi Strategy Fund acquired 2.74 lakh shares each for Rs 8.84 crore.
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