IPO Details
- IPO opening: September 22, 2025
- IPO closing: September 24, 2025
- IPO size: Rs 408.80 crore
- Fresh issue: Rs 130 crore
- Offer for sale: Rs 278.80 crore
- IPO price: Rs 306 to Rs 322 per share
- Lot size: 46 shares
- Investor allocation: QIB not more than 50%, NII not less than 15%, Retail not less than 35%
- Lead Managers: DAM Capital Advisors Ltd., IIFL Capital Services Ltd., Motilal Oswal Investment Advisors Ltd.
- Registrar: MUFG Intime India Pvt. Ltd.
About the Company
- Ganesh Consumer Products is a Kolkata-based FMCG company, established in 2000. It is the third largest brand of packaged whole wheat flour (atta) and the largest brand in wheat-based derivatives (maida, sooji, dalia) in East India in terms of value sold in Fiscal 2025. The company is also one of the top two players for packaged sattu and besan in East India.
- Main products: Whole wheat flour (atta), wheat and gram-based value-added flour products (maida, sooji, sattu, besan, dalia), packaged instant food mixes, spices, ethnic snacks, and ethnic flours.
- Sales & manufacturing units: Seven manufacturing facilities located in West Bengal, Uttar Pradesh, and Telangana.
- Employees: 750 total employees, including 552 contract workers as of March 31, 2025.
- Promoters: Purushottam Das Mimani, Manish Mimani, Madhu Mimani, Manish Mimani (HUF), and Srivaru Agro Private Limited.
- Network: Omni-channel presence through general trade, modern trade, and e-commerce. As of March 31, 2025, the general trade channel includes over 28 C&F agents, 9 super stockists, and 972 distributors.
Financials
| Particulars | FY25 (Rs. Cr) | FY24 (Rs. Cr) | FY23 (Rs. Cr) |
|---|---|---|---|
| Revenues from Operations | 850.46 | 759.07 | 610.75 |
| EBIDTA | 73.24 | 63.35 | 56.14 |
| EBIDTA Margin (%) | 8.61 | 8.35 | 9.19 |
| Net Profit (PAT) | 35.43 | 26.99 | 27.10 |
| Net Profit Margin (%) | 4.17 | 3.56 | 4.44 |
Post IPO Market cap: Rs. 1301.22 crore. P/E FY24: 48.20. P/E FY25: 36.72.
The company has shown steady growth in its top line over the last three fiscal years but bottom line was static for FY23 and FY24 but saw improvement in FY25.
Salient Points
- Use of funds: From the net proceeds of the fresh issue, the company will utilize Rs. 60.00 crore for repayment of certain borrowings, Rs. 45.00 crore for capital expenditure on setting up a roasted gram flour and gram flour manufacturing unit in Darjeeling, and the rest for general corporate purposes.
- Business Verticals: Business is primarily driven by B2C operations, which contributed 76.98% of revenues in FY25. Other operations include B2B supplies to FMCG companies and HoReCa businesses, and the sale of by-products like wheat bran.
- Growth Strategies: The company aims to strengthen its B2C operations, expand its reach in existing markets like West Bengal, Jharkhand, Bihar, Odisha, and Assam, and enhance brand visibility. It plans for geographical expansion within Eastern India before considering a PAN India presence. Category expansion, particularly in spices, is another key strategy.
- Risks: The business is dependent on the supply and price of raw materials like wheat and gram. A substantial portion of sales is concentrated in East India, particularly West Bengal.
- Litigations: The company, its directors, and promoters are involved in various legal proceedings, including criminal, tax, and statutory matters.
- Revenue split by region (FY25): Sales in West Bengal contributed 84.3% of the revenue from operations.
- Revenue split by product for B2C (FY25): Whole wheat flour (atta) contributed 31.63%, while wheat and gram-based value-added flour products contributed 60.20%.
- Expansion: A new manufacturing unit for roasted gram flour (sattu) and gram flour (besan) is planned in Darjeeling, West Bengal, using funds from the IPO.
- CAGR (FY23-25): Revenue CAGR was 18.0%, EBITDA CAGR was 16.5%, and PAT CAGR was 14.3%.
- EV/EBIDTA (FY25): 16.7x.
Anchors
- Total amount raised from anchor investors: ₹122.34 crore
- Number of anchor investors: 13
- The top anchor investors in the Ganesh Consumer Products IPO anchor round were Subhkam Ventures (15.51%), Bengal Finance and Investment Private Limited (15.51%), Samsung India Electronics Pvt. Ltd. (15.51%), Saint Capital Fund (7.22%), BNP Paribas Financial Markets (7.22%), Citigroup Global Markets Mauritius Private Limited (7.22%), Rajasthan Global Securities Private Limited (7.22%), Singularity India Master Fund (7.22%), LC Pharos Multi Strategy Fund (7.22%), and PGIM India Master Fund (3.61%).
- Remaining anchor investors include Sanshi Fund and Pharo Macro Fund, each allocated 3.61% of the anchor portion.
- Mutual funds received a total allocation of 10.83% in the anchor book.
Peers
| Particulars (Rs cr) | Ganesh Consumer Products Ltd | Patanjali Foods Ltd | AWL Agri Business Ltd |
|---|---|---|---|
| CMP (Rs) | 322 | 606 | 260 |
| Sales | 850 | 34,157 | 63,672 |
| EBITDA | 73 | 1,946 | 2,482 |
| Net Profit | 35 | 1,301 | 1,225 |
| Mkt Cap. | 1,301 | 65,944 | 33,694 |
| Enterprise Value | 1,220 | 66,429 | 33,081 |
| EBITDA Margin (%) | 8.6 | 5.7 | 3.9 |
| Net Profit Margin (%) | 4.2 | 3.8 | 1.9 |
| RoE (%) | 9.9 | 11.4 | 13.0 |
| P/E (x) | 36.7 | 50.7 | 27.5 |
| EV/EBITDA (x) | 16.7 | 34.1 | 13.3 |
| EV/Sales (x) | 1.4 | 1.9 | 0.5 |
Source : RHP & SBI Securities
Management commentary
- The market for packaged consumer staples and spices in Eastern India is around Rs 12,000 crore and is growing at 16%. The company has grown at an 18% CAGR over the last three years.
- The growth strategy involves consolidating its leadership position in Eastern India, which accounts for 33% of India’s population, before expanding to other metro cities and eventually PAN India.
- Expansion will be driven by deepening penetration in core markets, entering new Eastern states like Bihar and the Northeast, and growing the recently launched spices category.
- The company sources wheat domestically and believes its brand strength allows it to pass on inflationary pressures to consumers.
- Value-added products constitute 69% of total sales, highlighting a diversified portfolio beyond just whole wheat atta. PAT margins are above 4% and EBITDA margins are at 8.6%, which are considered among the best in the category and are expected to increase.
Opinion
- I will skip the IPO.
- The company operates in a high-volume, low-margin, and highly competitive segment.
- It is more of a regional play.
- Post IPO equity capital: Rs. 40.41 crore, P/E for FY 24: 48.20 times, P/E FY25: 36.72 times.
- From a long term view, company is a market leader in its core categories in East India, with a strong brand and an extensive distribution network.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.