Ganesh Consumer Products IPO: Patanjali Rival Files Draft Papers, Eyes Rs 130 Crore Via Fresh Issue

Ganesh Consumer Products Ltd. filed the preliminary documents with the Securities and Exchange Board of India on Tuesday for its initial public offering.

The IPO comprises a fresh issue of shares worth Rs 130 crore and an offer-for-sale component consisting of 1.24 crore shares of Rs 10 face value each. The OFS size in monetary terms, as well as the overall issue size, was not mentioned in the draft red herring prospectus.

Manish Mimani and Madhu Mimani will be among the promoters selling their shares through the OFS, according to the DRHP.

DAM Capital Advisors Ltd., IIFL Capital Services Ltd., and Motilal Oswal Investment Advisors Ltd. are the book running lead managers, and Link Intime India Private Ltd. is the registrar of the offer.

The equity shares are proposed to be listed on both the main bourses, the BSE and the National Stock Exchange.

Net proceeds from the fresh issue of shares will be utilised for repayment of borrowings, for funding capital expenditure for the setting up of a roasted gram flour and gram flour manufacturing unit in West Bengal's Darjeeling, and for general corporate purposes.

Ganesh Consumer's net profit in fiscal 2024 stood at Rs 26.9 crore, marginally lower as compared to Rs 27.1 crore in fiscal 2023. The company's bottomline stood at Rs 27.1 crore in fiscal 2022 as well, as per the DRHP.

The revenue from operations in fiscal 2024 stood at Rs 759 crore in fiscal 2024, higher as compared to Rs 611 crore in fiscal 2023 and Rs 455 crore in fiscal 2022.

In the quarter ended June 2024, the company's net profit stood at Rs 13.4 crore and the revenue from operations came in at Rs 189.4 crore, as per the financial data shared in the pre-IPO document.

Ganesh Consumer is a fast-moving consumer goods company headquartered in Kolkata. It is one of the largest brands of packaged whole wheat flour (atta) and wheat-based derivatives (maida, sooji, dalia) in East India, based on value of items sold in fiscal 2024, according to reports. Additionally, the company is also one of the top players in the packaged sattu and besan markets in East India.

As of Sept. 30, 2024, the company had a diverse product portfolio consisting of 42 products across various categories.

Ganesh Consumer offers a wide range of consumer staples, including packaged instant food mixes (e.g., khaman dhokla, bela kachori), spices , ethnic snacks (e.g., bhujia, chanachur), and ethnic flours (e.g., singhara flour, bajri flour).