Ganga Bath Fittings IPO listing on June 11: Here's what GMP Indicates

Synopsis

Ganga Bath Fittings is set to list on the NSE SME platform after its IPO aimed to raise Rs 32.65 crore. However, the grey market premium indicates a discounted debut, with expectations of opening below the IPO price. The company, a manufacturer of bathroom accessories, plans to use IPO proceeds for capital expenditure and working capital.

Ganga Bath Fittings, a leading manufacturer and supplier of bathroom accessories, is set to debut on the NSE SME platform. The IPO aimed to raise Rs 32.65 crore through a fresh issue of 66.63 lakh shares at a fixed price of Rs 49 per share.

Ahead of the listing, the grey market premium (GMP) for Ganga Bath Fittings IPO indicates a discounted debut. According to market sources, the GMP is currently negative, with the stock expected to open around Rs 47 per share, a Rs 2 below the IPO price.

A negative GMP suggests that the demand for the stock in the informal market has been lukewarm, raising caution among investors. However, it will be interesting to see if the stock might recover in the long term once it starts trading officially on the exchange.

Ganga Bath Fittings, incorporated in 2018, manufactures a wide range of products, including CP taps, showers, PTMT taps, sanitary wares, and stainless steel showers.

With over 2,500 distributors and more than 400 SKUs across different product segments, the company has a strong presence in the domestic market.

Financially, the company has reported steady growth in recent years. For the nine months ending December 2024, it reported a revenue of Rs 32.31 crore and a net profit of Rs 4.53 crore, marking a significant improvement compared to previous periods.

The IPO proceeds are earmarked for capital expenditure towards equipment purchase, repayment of certain borrowings, funding working capital requirements, and general corporate purposes.

Ganga Bath Fittings IPO was managed by Jawa Capital Services, with Kfin Technologies serving as the registrar.

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