Ganesh Consumer Products' IPO was listed on the stock market on September 29 and proved disappointing for investors. The shares listed with a loss of 8.38 percent on BSE and 8 percent on NSE. The company's IPO was subscribed 2.68 times, despite an increase in revenue and profit in FY2025.
Ganesh Consumer Products IPO Listing: The FMCG company Ganesh Consumer Products Limited's IPO, worth Rs 408.80 crore, was listed on the stock market on September 29. The shares listed with a loss of 8.38 percent on BSE and 8 percent on NSE. The price band for the IPO was Rs 306-322 per share, and it was subscribed 2.68 times. In FY2025, the company's revenue increased by 12 percent to Rs 855.16 crore, and its net profit rose by 31 percent to Rs 35.43 crore. The funds raised from the IPO will be utilized for debt repayment and manufacturing unit expansion.
IPO Listing Disappoints Investors
Ganesh Consumer Products' IPO was listed on the stock market on September 29, but investors were met with disappointment. The shares listed at Rs 295 on BSE and Rs 296.05 on NSE, which is significantly below the price band. The company had aimed to raise a total of Rs 408.80 crore through the IPO, issuing both fresh shares and an offer for sale.
The decline in share price at the time of listing dashed investors' hopes. Despite the company's b financial position, investors found the initial performance of the shares to be weak. This event in the market has become a signal of caution for investors.
IPO Subscription Details
During the IPO, the total subscription stood at 2.68 times. The portion reserved for Qualified Institutional Buyers was subscribed 4 times. The portion reserved for Non-Institutional Investors was subscribed 4.41 times, and for Retail Investors, it was subscribed 1.17 times. The portion reserved for employees was subscribed 2.14 times. Thus, investors showed b initial interest in the IPO, but the decline in share price at the time of listing dampened their expectations.
This indicates that a stock's market debut always depends on investor sentiment. The IPO received good subscription, but the initial trading affected investors' positive sentiment.
Company Introduction
Ganesh Consumer Products is headquartered in Kolkata, West Bengal. It is known as a leading brand for Atta (whole wheat flour), Maida (refined flour), Sooji (semolina), and Daliya (broken wheat) in Eastern India. The company's products include Besan (gram flour), instant food mixes, Singhara Atta (water chestnut flour), Bajra Atta (pearl millet flour), spices, and traditional snacks. The company holds a distinct identity in the FMCG sector.
The promoters include Purushottam Das Mimani, Manish Mimani, Madhu Mimani, and Shreevaru Agro Private Limited. Before the IPO, the company raised Rs 122.34 crore from anchor investors. This investment is expected to aid the company's growth and expansion.
IPO Objectives and Fund Utilization
A total of 40 lakh fresh shares worth Rs 130 crore were issued in the IPO, along with an Offer for Sale of 87 lakh shares amounting to Rs 278.80 crore. The funds raised from the IPO will primarily be used for debt repayment, setting up a new manufacturing unit in Darjeeling, and for general corporate purposes.
This investment strategy is aimed at strengthening the company's financial health and increasing production capacity. This will enhance the company's growth prospects and expand product reach in the future.
Financial Performance
In FY2025, Ganesh Consumer Products' revenue increased by 12 percent to Rs 855.16 crore. Net profit rose by 31 percent to Rs 35.43 crore, compared to Rs 26.99 crore a year earlier. The company had a debt of Rs 50 crore in FY2025.
This growth reflects the company's stable financial performance and b market presence. For investors, this signals potential for long-term business growth.
