Ashish Kacholia-supported Ganesh Consumer Products IPO subscribed 6% on day 1. Check GMP, Price Band and other details

Ganesh Consumer Products, a leading food company in East India, drew a 6% subscription on the opening day of his IPO on Monday, encouraged by demand from retail and non-institutional investors.

Around 12:00 the shopping area was offered 12%, while non-institutional investors (NIIS) were good for 2% of the subscriptions. Qualified institutional buyers (QIBS) were not yet subscribed.

Ganesh Consumer Products IPO GMP

The IPO, priced in a band of RS 306–322 per share, has a (GMP) of RS 11 from September 22. Based on this, the estimated list price is RS 333 per share, which implies a potential profit of 3.42% on the list.

Problem size

The RS 409 CRORE range consists of an RS 130 CRORE Fresh problem and an RS 278.8 Crore offer for sale (OFS). Prior to the opening, Ashish Kacholia-supported Bengal Finance participated as an anchor investor.

Company profile

Ganesh Consumer Products, headquarters in Kolkata, ranks on two largest packaged wheat flower brand per value in East India and Leads in wheat-based derivatives such as Maida, Sooji and Dalia. It is also one of the top two players in gram -based products, including Sattu and BESAN, with market shares of 43% and 5% respectively.

The flagship “Ganesh” brand comprises 42 products over 232 SKUs, about Atta, Maida, Sooji, Dalia, Sattu, Besan, Instant Mixes, Spices and Ethnic Snacks. B2C operations contribute almost 77% of the income, supported by 28 C&F agents, 9 Super Stockists and 972 distributors, who reach more than 70,000 stores in West Bengalen, Bihar, Odisha, Jharkhand and Assam.

Financial

In FY25, sales on an annual basis rose from 12% to RS 8,505 million, while the profit after tax increases to RS 35.4 Crore. EBITDA -MARME was 8.6% and pat -margin at 4.2%. EPS improved to RS 8.8 of RS 6.7 in the previous year. At the top of the price band, the IPO is rated at 36.7x FY25 income, which implies market capitalization after the edition of RS 1.301 Crore.

Use of yields

The proceeds from the new issue will be used to repay debts, to set up a roasted grammary and grammary facility in Darjeeling and for general business purposes. The OFS will enable promoters to mate their interests, reducing their company from 75.3% to 64.1%.

Brokerage -display

Anand Rathi Research has assessed the IPO as “Subscribe – in the long term” and notes that although the regional leadership of the company, the strong product presence, the extensive distribution network and the focus on B2C operations are positive.

The brokerage emphasized the diversification of the company in herbs and snacks, supported by solid brand recognition. Although the modest GMP suggests limited profits on the list of listing day, the established track record, brand strength and expansion plans of Ganesh Consumer make it attractive for patient investors looking for exposure to consumer administrators.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)