New Delhi, September 29 (HS): FMCG company Ganesh Consumer Products Ltd made a sluggish debut in the stock markets today, disappointing IPO investors with a negative opening. Issued at ₹322 per share, the stock listed at a discount — ₹295 on the BSE, down 8.38 percent, and ₹296.05 on the NSE, a decline of 8 percent.
However, buying support after listing helped cushion the fall, and by 11 a.m., the stock was trading at ₹305.65. This reduced investor losses from 8 percent at listing to about 5.08 percent by mid-morning trade.Ganesh Consumer Products’ ₹408.80 crore IPO, which remained open for subscription from September 22 to 24, had received a moderate response.
The issue was subscribed 2.68 times overall, with the Qualified Institutional Buyers’ (QIB) quota subscribed 4.01 times and the Non-Institutional Investors’ (NII) portion 4.41 times. The retail portion saw a modest 1.17 times subscription, while employees’ quota was subscribed 2.14 times.
The IPO comprised a fresh issue of 40 lakh equity shares worth ₹130 crore and an Offer for Sale (OFS) of 87 lakh shares worth ₹278.80 crore. Funds raised from the fresh issue are earmarked for setting up a new manufacturing facility in Darjeeling, reducing existing debt, meeting working capital requirements, and other general corporate purposes.
According to the company’s prospectus, Ganesh Consumer Products has shown fluctuating financial performance. The firm reported a net profit of ₹27.10 crore in FY 2022–23, which declined slightly to ₹26.99 crore in FY 2023–24. However, profitability improved in FY 2024–25, with net profit rising to ₹35.43 crore. The company’s revenue has grown steadily, achieving a compound annual growth rate (CAGR) of over 12 percent to reach ₹855.16 crore.
Debt levels, however, have seen volatility. Borrowings fell from ₹86.13 crore at the end of FY 2022–23 to ₹38.29 crore in FY 2023–24, only to rise again to ₹50 crore in FY 2024–25. Meanwhile, reserves and surplus climbed consistently from ₹167.95 crore in FY 2022–23 to ₹184.98 crore in FY 2023–24, and further to ₹190.47 crore by FY 2024–25.
Hindusthan Samachar / Jun Sarkar
