Ashish Kacholia-backed Ganesh Consumer Products IPO booked 41% so far. Check GMP, subscription status. Apply or not?

The initial public offering for Ganesh Consumer Products Ltd, a prominent entity in the packaged food sector in eastern India, is set to take place from September 22 to 24. Ganesh Consumer IPO price band has been established at ₹306 to ₹322 per share.

Prior to the public subscription launch, Ganesh Consumer Products IPO has secured over ₹122 crore from anchor investors. Notable institutions that joined the anchor round include Subhkam Ventures, Bengal Finance and Investment, Saint Capital Fund, BNP Paribas Financial Markets, Citigroup Global Markets Mauritius, and Rajasthan Global Securities, as stated in a circular posted on the BSE's website. Prominent investor Ashish Kacholia, participated in the anchor round.

Founded in 1936, the company provides 42 different products, encompassing staples, spices, ethnic snacks, and new food categories.

As of September 30, 2024, it boasts a distribution network that spans over 70,000 retail stores, modern trade establishments, and e-commerce platforms. It has seven manufacturing plants located in West Bengal, Uttar Pradesh, and Telangana.

Ganesh Consumer Products IPO GMP today

Ganesh Consumer IPO GMP today is ₹10. This indicates Ganesh Consumer share price were trading at a premium of ₹10 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ganesh Consumer share price was indicated at ₹332 apiece, which is 3.11% higher than the IPO price of ₹322.

According to the grey market activities observed over the last nine sessions, the current GMP ( ₹10) indicates a downward trend. The lowest reported GMP is ₹0.00, whereas the highest is ₹25, as per expert analysis.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Ganesh Consumer IPO review

As per the Anand Rathi Research Team, at the upper price band, the company is priced at 36.7 times FY25 price-to-earnings ratio, resulting in a post-issue market capitalization of ₹13,012 million. Their strategy focuses on bolstering B2C operations, broadening presence in current markets, and fostering growth in new territories, primarily concentrating on West Bengal, Jharkhand, Bihar, Odisha, and Assam.

Additionally, the company intends to improve brand visibility throughout urban, semi-urban, and rural areas of East India through enhanced marketing and advertising efforts. Considering these elements, the IPO seems fully valued and is recommended as a “SUBSCRIBE – LONG TERM.”

Ganesh Consumer IPO subscription status

Ganesh Consumer IPO subscription status was 41% on day 2. The retail portion was subscribed 43%, and NII portion has been booked 23%, Qualified Institutional Buyers (QIBs) portion received 51% bids. The employee portion has been booked 1.06 times.

The company has received bids for 36,76,780 shares against 89,12,228 shares on offer, at 17:00 IST, according to data on BSE.

Ganesh Consumer IPO details

Ganesh Consumer Products IPO includes a fresh equity issue valued at up to ₹130 crore and an offer-for-sale (OFS) of 86.58 lakh shares, priced at ₹279 crore at the highest range, being sold by promoter and investor shareholders.

From the proceeds of the fresh equity issue, ₹60 crore will be allocated for debt repayment; ₹45 crore will be used to establish a roasted gram flour and gram flour manufacturing facility in Darjeeling, along with funds for general corporate needs.

Dam Capital Advisors Ltd. serves as the book-running lead manager, and MUFG Intime India Pvt. Ltd. acts as the registrar for this offering.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.