Ganesh Consumer Products IPO opens for subscription today: Should you bid?

The initial public offering (IPO) of Ganesh Consumer Products, a key player in packaged food products in eastern India, has opened for subscription on Monday, September 22. The ₹409-crore IPO has been subscribed 7% so far on Day 1.

The company is selling its shares in a fixed price band of ₹306-322, with investors able to bid for a minimum lot of 46 shares. The IPO will conclude on September 24.

In the unlisted market, shares of Ganesh Consumer Products are trading with a grey market premium (GMP) of about 4% over the IPO price.

The IPO is a mix of fresh issue worth ₹130 crore and an offer-for-sale (OFS) of ₹278.8 crore.

The company has raised over ₹122 crore from anchor investors, ahead of its initial share-sale opening for public subscription.

Some of the institutions that participated in the anchor round included Subhkam Ventures, Bengal Finance and Investment, Saint Capital Fund, BNP Paribas Financial Markets, Citigroup Global Markets Mauritius, and Rajasthan Global Securities.

Ganesh Consumer Products, which produces consumer staples like wheat flour, maida, sooji and dalia, along with packaged instant food mixes, spices, and ethnic snacks, plans to spend ₹60 crore of the fresh issue proceeds for repayment of certain borrowings.

Further, ₹45 crore will be used for setting up of a roasted gram flour and gram flour manufacturing unit in West Bengal’s Darjeeling, and the remaining amount will be set aside for general corporate purposes.

Ganesh Consumer Products is the third largest brand in packaged whole wheat flour (atta) by value in fiscal year 2025, according to brokerage firm HDFC Securities.

"It holds the largest market share in wheat-based derivatives such as maida, sooji, and dalia across East India. GCPL is also a top two player in packaged gram-based flour products, with market shares of approximately 43.4% in sattu and 4.9% in besan within East India. In West Bengal specifically, the Company commands about 40.5% value share for wheat-based products, including wheat flour, maida, sooji, and dalia," it said.

However, the brokerage has highlighted that the key concerns include indebtedness, any slowdown or interruption to manufacturing operations or under-utilisation of existing or future manufacturing facilities, and more.

Anand Rathi Research has recommended a Subscribe – Long Term rating on the IPO. "The issue is fully valued but the company’s strong regional presence, leadership in key product categories, extensive distribution reach, and strategic focus on B2C operations are positives," it said.

The brokerage also said the company's efforts to diversify into new categories like spices and snacks, supported by strong brand recall in its core markets.

DAM Capital Advisors, IIFL Capital Services, and Motilal Oswal Investment Advisors are merchant bankers managing the Ganesh Consumer Products IPO.

The allotments will likely be finalised by September 25, and the shares are scheduled to be listed on stock exchanges on September 29.