IPO Jitters: Ganesh Consumer Products Sees 60 Percent GMP Drop As Subscription Window Opens

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Ganesh Consumer Products Ltd has opened its initial public offering (IPO for subscription today, September 22, 2025, amid a sharp decline in its grey market premium (GMP). Once touted as a promising FMCG entrant, the company’s GMP has plunged by nearly 60 percent over the past week, raising concerns about investor sentiment and valuation expectations.

The IPO, priced between Rs 306 and Rs 322 per equity share, aims to raise Rs 540 crore through a fresh issue and offer for sale. While the company has a strong presence in packaged foods and personal care segments, the sudden GMP correction has cast a shadow over its listing prospects.

Key Highlights From The IPO Launch

- Ganesh Consumer Products IPO opens for subscription from September 22 to September 25
- Price band set at Rs 306 to Rs 322 per share
- Lot size fixed at 46 shares, minimum investment Rs 14,076
- Grey market premium drops from Rs 120 to Rs 48 in five days
- Listing date scheduled for October 1, 2025, on NSE and BSE

GMP Slide And Market Sentiment

The grey market premium, which reflects unofficial trading of IPO shares before listing, is often seen as a barometer of investor enthusiasm. Ganesh Consumer’s GMP fell from Rs 120 to Rs 48, indicating a significant cooling of demand. Market watchers attribute the decline to broader volatility in mid-cap stocks, cautious retail sentiment, and concerns over aggressive pricing.

Analysts also point to the company’s valuation multiples, which appear stretched compared to peers like Marico and Emami. While Ganesh Consumer has posted steady revenue growth, its net margins remain modest, and return on equity has hovered below 12 percent over the past two fiscal years.

Company Profile And Financials

Ganesh Consumer Products is a diversified FMCG player with operations in edible oils, instant mixes, herbal cosmetics, and ready-to-eat snacks. The company operates five manufacturing units across West Bengal, Odisha, and Jharkhand, and has a distribution network spanning 18 states.

Financial highlights for FY25 include:

- Revenue of Rs 1,120 crore, up 14 percent year-on-year
- EBITDA margin of 11.2 percent
- Net profit of Rs 78 crore
- Debt-to-equity ratio of 0.42, indicating moderate leverage

Use Of Proceeds And Strategic Goals

The IPO proceeds will be used for:

- Expanding manufacturing capacity in Siliguri and Bhubaneswar
- Strengthening supply chain and cold storage infrastructure
- Repayment of Rs 120 crore in outstanding debt
- Brand promotion and digital marketing initiatives

The company aims to increase its market share in Tier II and Tier III cities, with a focus on health-conscious product lines and regional flavors. It also plans to launch a direct-to-consumer platform by Q4 FY26.

Subscription Details And Investor Outlook

Retail investors can apply for a minimum of one lot (46 shares), with HNIs and institutional investors allotted higher quotas. The IPO is being managed by Axis Capital and ICICI Securities, with Link Intime as the registrar.

Despite the GMP drop, some analysts believe the IPO could still see decent subscription levels due to brand familiarity in eastern India and the festive season demand cycle. However, they caution against expecting strong listing gains unless broader market sentiment improves.

Looking Ahead

Ganesh Consumer Products faces a critical test in the coming days as subscription data rolls in. The GMP correction has tempered expectations, but the company’s long-term growth potential in the FMCG space remains intact. Investors will be watching for updates on anchor investor participation and QIB interest before making final bids.

Sources: Moneycontrol, Business Standard, Economic Times, IPO Watch India.