Ganga Bath Fittings Limited is a manufacturing and supply company specializing in bathroom accessories and sanitary ware products. Founded to cater to the growing demand in India’s residential and commercial construction sectors, the company’s portfolio includes CP taps and parts, ABS taps and showers, health faucets, bathroom vanities, sinks, stainless-steel (SS) showers, shower drains, channel drainers, door handles, and other related items. These products are sold under the Ganga brand to retail hardware stores, wholesalers, dealers, and directly to architects and interior designers.

Over the past decade, Ganga Bath Fittings has expanded its manufacturing capacity by adding advanced injection-molding and metal fabrication equipment. The management team is led by promoters Mr. Tusharkumar Vithaldas Tilva, Mr. Jimmy Tusharkumar Tilva, and Mr. Sajan Tusharbhai Tilva, each of whom has over 20 years of industry experience. The company emphasizes quality control, cost efficiency, and timely delivery, enabling it to compete with both domestic and international players.

IPO Details and Objectives
Ganga Bath Fittings is launching a Book Built Issue of ₹32.64 crores on the NSE SME Emerge platform. The issue comprises 66.63 lakh fresh equity shares with no offer-for-sale portion. Key dates are:

• Issue Open: June 4, 2025

• Issue Close: June 6, 2025

• Allotment Date: June 9, 2025 (Monday)

• Listing Date: June 11, 2025 (tentative)

The price band is fixed at ₹46 to ₹49 per share. Each lot contains 3,000 shares, requiring a minimum retail investment of ₹1,47,000, while HNI investors must apply for at least two lots (₹2,94,000).

Proceeds will be used for:

1. Capital Expenditure (₹20.13 crores): To acquire machinery and equipment for capacity expansion and technology upgradation.

2. Debt Repayment (₹5.33 crores): To repay existing borrowings, reducing interest burden and improving the balance sheet.

3. Working Capital (₹2.70 crores): To fund raw-material purchases, inventory, and receivables.

4. General Corporate Purposes: For strategic initiatives and unforeseen contingencies.

Grey Market Premium (GMP) Analysis
As of the latest data, the Grey Market Premium stands at ₹0, indicating no anticipated listing gains. GMP in SME IPOs often reflects speculative demand in unregulated circles. A 0 GMP suggests that market sentiment is neutral, with investors neither bullish nor bearish ahead of listing. However, GMP can change rapidly and is not an official price discovery mechanism.

Subscription Status
By 6:00 PM on June 6, 2025, Ganga Bath Fittings IPO recorded 1.61 times subscription:

• Retail Portion: Subscribed ~1.2x

• HNI Portion: Subscribed ~1.8x

• Institutional Portion: Subscribed ~1.4x

Overall, the IPO saw moderate interest. SME issues typically attract lower institutional demand compared to mainboard offerings.

How to Check Allotment Status
Investors can verify their allotment on June 9, 2025 via:

1. Registrar Website: Visit Kfin Technologies Ltd allotment status page.

2. Select Issue: Choose Ganga Bath Fittings Limited IPO.

3. Enter Details: Provide PAN, Application Number, or DP Client ID.

4. Submit: View allotment result instantly.

Alternatively, check on the NSE SME official portal or through your broker’s IPO status facility.

Financial Performance
Ganga Bath Fittings has delivered consistent growth in revenue, EBITDA, and profit after tax (PAT) over recent years:

The jump in 9M FY 25 profits highlights operational efficiency and higher value-added product mix. EBITDA margins improved from 8.4% in FY 22 to 15.3% in 9M FY 25, driven by better cost control and economies of scale.

Valuation and Key Ratios
At the upper price band of ₹49, the company’s post-issue market cap will be ₹108.81 crores. Key metrics include:

• Pre-Issue EPS (FY 24): ₹1.51

• Post-Issue EPS (FY 24): ₹1.12

• Annualised EPS (9M FY 25): ₹2.72

• Pre-Issue P/E: 32.45x

• Post-Issue P/E: 43.91x

• Industry P/E: –8.00x (negative, SME benchmarks differ)

• ROCE: 358.93%

• ROE: 15.07%

• RoNW: 15.07%

The sharply elevated ROCE reflects low capital base post-issue but may not be sustainable. The P/E ratio at 43.91x indicates a high valuation, which may limit listing upside.

Risk Factors

• High Valuation: Attracts limited buyer interest if listing premium fails.

• SME Liquidity: Lower trading volumes can lead to wider bid-ask spreads and exit challenges.

• Concentrated Promoter Holding: May affect governance and minority shareholder rights.

• Raw Material Price Volatility: Impact on margins, especially brass and stainless steel inputs.

• Competition: Intense competition from larger established and unorganized players may pressure pricing.

Promoter and Management
The Tilva family promoters bring deep industry know-how. The board includes seasoned professionals in manufacturing, finance, and marketing. Their focus on product innovation, quality certification, and after-sales service underpins the company’s growth. However, potential investors should gauge governance quality and board independence before subscribing.

Investment Recommendation
Given the 0% GMP, high P/E, and SME market dynamics, the IPO appears priced for perfection with limited listing gains. While long-term investors confident in the bath fittings sector may consider subscribing, the issue is not attractive purely for a quick listing profit.

Disclaimer:
This article is for informational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell securities. Investors should conduct their own due diligence, consult with a qualified financial advisor, and consider their own financial situation before making any investment decisions.

The Upcoming IPOs in this week and coming weeks are Oswal Pumps,Samay Projects Services, Monolithisch India, Jainik Power Cables.

The Current active IPO are Sacheerome Limited.

The Closed IPOs are Ganga Bath Fittings.

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