Ganesh Consumer Products IPO is one of the key IPOs opening this week. The issue opening on September 22 represents eastern India’s third-largest brand of packaged whole wheat flour and the largest brand in wheat-based derivatives. The Rs 408.80 crore IPO aims to fund the company’s capex requirement to fuel future growth.
Here is a quick look at the top 5 key details about the Ganesh Consumer Products IPO that you cannot miss before you decide whether it is a ‘Subscribe’ or ‘Avoid’.
Ganesh Consumer Products IPO: Issue size, IPO date and offer details
The Ganesh Consumer Products IPO is open between September 22-24 and the issue is priced at Rs 306-322 per share. This Rs 408.80 crore issue is a combination of afresh share issue worth Rs 130 crore of 0.40 crore shares and an ‘offer for share’ of 0.87 crore shares. The offer for sale is expected to aggregate Rs 278.80 crore. The book running lead manager of the issue is Dam Capital Advisors and MUFG Intime is the issue registrar.
Ganesh Consumer Products IPO: GMP muted
The GMP for the Ganesh Consumer Products IPO has seen a mild 3% uptick. As per the latest updated GMP of Rs 10 and the upper end of the price band at Rs 322.00, the expected listing price for Ganesh Consumer Products IPO is Rs 332. The current trend is mildly upwards with a 3% uptick. This is lower than the trend seen last week.
Ganesh Consumer Products IPO: Issue objective
The company is one of the largest brands of wheat-based & gram-based derivatives in East India by value. One of the key objectives of the Ganesh Consumer Products IPO is prepayment/repayment of certain outstanding borrowings availed by the company. This is likely to account for Rs 60 crore from the total proceeds raised by fresh share issuance. That apart, Rs 45 crore is expected to be used for funding capex requirements for setting up a roasted gram flour and gram flour manufacturing unit in Darjeeling, West Bengal.
Ganesh Consumer Products IPO: Lot size, allotment and listing details
The Ganesh Consumer Products IPO allotment is expected to be finalised on September 25 and the issue is likely to be listed on September 29. Ganesh Consumer Products IPO price band is set at Rs 306-322.00 per share . The lot size for the IPO is fixed at 46 shares per lot. Retail investors need to invest in at least 1 lot entailing a minimum investment of Rs 14,812. The lot size for sNIs is 14 lots (644 shares) and for bNIIs, it is 68 lots (3,128 shares).
Ganesh Consumer Products IPO: Analyst views
Most experts recommend a ‘Subscibe for the long-term’ for the Ganesh Consumer Products IPO. SBI Securities highlighted that the company has a market-leading share in East India “led by its strong brand and extensive distribution network, which is expected to drive consistent financial performance going ahead.”
According to their estimates, the company has delivered annualised revenue growth of 18%, 16.5% EBITDA growth and clocked a 14.3% profit jump between FY23-FY25. They added that the “company rides on value-added products (whole wheat & gram-based) and is also building its portfolio on value-added spices (whole & blended), ethnic snacks and ethnic flour.”
At the upper end of the price band of Rs 322, “the company is valued at post-issue capital FY25 PE of 36.7x. We recommend investors to SUBSCRIBE to the issue at the cut-off price for the long-term,” they added.