Ganesh Consumer Products IPO sails through on Day 3, NII portion booked 4.3x: Check latest GMP

Ganesh Consumer Products IPO Day 3

The initial public offering of Ganesh Consumer Products has been subscribed 267 percent on its third day of public bidding, September 24. The Rs 409-crore IPO received bids for 2.38 crore shares, as against the offer size of 89 lakh shares, according to data on NSE.

Retail investors have subscribed to 115 percent of their reserved portion, while Non Institutional Investors (NII) have booked 4.34 times of their reserved portion. Qualified Institutional Buyers (QIB) have booked 418 percent of their reserved portion.

Ganesh Consumer Products IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with around 1.5 percent grey markets 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, and 3 percent quoted yesterday.

According to IPO Watch, the unlisted shares of the company were trading with nearly 3 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 IPO will remain open for public bidding till September 24. 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.

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.

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?

The Indian packaged food market is expected to grow at a steady pace in the coming years, driven by changing lifestyles, urbanization and more, said Master Capital Services. "Ganesh Consumer Products Limited is well-positioned to capture this growth by expanding its distribution network and strengthening its business-to-consumer (B2C) operations to deepen and widen its geographical presence. The company is also diversifying and enhancing its product portfolio. Investors may consider the IPO as a long-term investment opportunity," it added.

Ganesh Consumer Products financials:

Ganesh Consumer Products has recorded profit at Rs 35.4 crore for the fiscal 2025, growing 31.3 percent compared to Rs 27 crore in the previous year. Revenue during the same period increased by 12 percent to Rs 850.5 crore, up from Rs 759 crore.

Follow all IPO news here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.