Institutional buyers aid Ganesh Consumer IPO sail through; GMP sees a dip

Ganesh Consumer Products IPO Day 3 update: Check latest subscription status, GMP, allotment date, listing date, and other key details of the public offering here

Ganesh Consumer Products Subscription Status:  The initial share sale of fast-moving consumer goods (FMCG) player Ganesh Consumer Products managed to get fully subscribed on the final day of subscription, fueled by demand among institutional buyers. The NSE data suggests that the issue has been oversubscribed by 1.09 times till 2 PM on Wednesday, September 24.

 

Among the individual categories, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) have oversubscribed their categories by 1.69 times and 1.25 times, respectively. Retail investors, however, have shown minimal interest in the initial public offering (IPO) of Ganesh Consumer Products, subscribing to only 71 percent of their allotted quota.

 

The lackluster sentiment extended to the grey market as well. According to sources tracking unofficial market activities, Ganesh Consumer Products shares were trading at a premium of ₹5 per share, or 1.55 per cent over the upper end of the issue price. The grey market premium (GMP) has declined from ₹10 reported on September 22, when the issue opened for subscription.

 

That said, analysts at Anand Rathi's research team have recommended subscribing to the issue for the long term, citing that the public issue appears fully priced. "At the upper price band, the company is valued at 36.7x FY25 P/E, translating to a post-issue market capitalisation of ₹1,301 crore."

Ganesh Consumer Products IPO details

Ganesh Consumer Products IPO is a book-built issue comprising a fresh issue of 4 million shares worth ₹130 crore, and an Offer for Sale (OFS) of 8.7 crore shares worth ₹278.80 crore. The issue is available at a price band of ₹306–322 per share. The company has set the lot size at 46 shares. Investors can bid for a minimum of 46 shares and in multiples thereof.

 

A retail investor would require a minimum of ₹14,812 to bid for one lot of the Ganesh Consumer Products IPO, and a maximum of 13 lots (598 shares) with an investment amount of ₹1,92,556.

 

As the issue closes for subscription today, the basis of allotment for Ganesh Consumer Products IPO shares is slated to be finalized on Thursday, September 25. The successful allottees will receive the company’s shares in their demat accounts on Friday, September 26.

 

Shares of Ganesh Consumer Products are scheduled to list on BSE and NSE on Monday, September 29.

 

Ganesh Consumer Products will not receive any proceeds from the OFS, as it will be given to selling shareholders. However, the company will use the proceeds from the fresh issue for repayment/prepayment, in full or in part, of certain outstanding borrowings availed. The company will further use the fresh proceeds for funding capital expenditure for setting up a roasted gram flour and gram flour manufacturing unit in Darjeeling, as well as for general corporate purposes.

About Ganesh Consumer Products

Ganesh Consumer Products Limited is a Fast-Moving Consumer Goods (FMCG) company headquartered in Kolkata, West Bengal. Originally incorporated as "Ganesh Wheat Products Private Limited" in March 2000, the company has undergone several name changes to reflect its evolving business, most recently changing from "Ganesh Grains Limited" to its current name in August 2024. The company’s journey began in 1936 with a retail outlet in Burrabazar, Kolkata.  In East India, in terms of value for Fiscal 2025, they are also one of the top two players for packaged sattu and besan (which are gram-based flour products), with a share of 43.4 per cent (sattu) and 4.9 per cent (besan) in the East India market for respective products, with a growing presence in various consumer staple categories such as spices and ethnic snacks.