Ganga Bath Fittings Makes Strong Debut on NSE SME with 20.4% Listing Gain

Ganga Bath Fittings Limited made a notable debut on the NSE SME platform on June 11, 2025, with its shares listing at ₹59 apiece—registering a 20.4% premium over the issue price of ₹49. Despite minimal activity in the grey market and a flat GMP (Grey Market Premium) of ₹0, the company's performance on listing day has sparked interest among retail and SME investors.

The IPO was subscribed 1.64 times overall, with strong demand from retail investors at 2.55 times. The offer size consisted of a fresh issue of 66.63 lakh equity shares, aggregating up to ₹32.64 crore. The price band for the IPO was set at ₹46–₹49 per equity share. The minimum lot size for retail investors was 3,000 shares, amounting to an investment of ₹1,47,000.

Business Overview of Ganga Bath Fittings Limited

Ganga Bath Fittings is engaged in the manufacturing and supply of bathroom accessories and sanitary products, including CP taps, showers, ABS health faucets, PTMT taps, SS channel drainers, bathroom vanities, and more. The company caters to a wide audience through a diversified business structure that includes:

• Own Brand Sales (under brands like Ganga, Glimpse, Stepian, Tora)

• OEM Contract Manufacturing for third-party companies

• Traded Sanitaryware under the Ganga label

Founded as Ganga Plast Industries in 2018, it transitioned into an LLP in 2020, and then into a public limited company in May 2024. Following a shareholder resolution in June 2024, it was renamed Ganga Bath Fittings Limited.

IPO Objectives and Utilization of Funds

The IPO proceeds are planned to be deployed across key business areas:

• ₹20.13 crore towards capital expenditure for new machinery and equipment

• ₹5.33 crore to repay/prepay loans

• ₹2.70 crore for working capital needs

• Remaining funds will be used for general corporate purposes

Company Strengths

1. Experienced Leadership: The promoters, including Mr. Jimmy Tusharkumar Tilva, bring over three decades of industry experience.

2. Wide Product Range: Over 400 SKUs across various product categories make the company competitive in addressing diverse consumer needs.

3. Strong Distributor Network: More than 2,500 distributors support deep market penetration.

4. Quality Assurance: The company is ISO 9001:2015 certified, reinforcing its commitment to maintaining global standards.

5. Legacy and Reputation: Operational since 2011, the company has earned goodwill through consistent innovation and product development.

6. Research & Development: A dedicated R&D team helps develop customized, innovative, and high-quality solutions.

Business Strategy Going Forward

The company has set forth an aggressive expansion and diversification roadmap:

• Geographic Expansion: Plans to tap into pan-India and international markets through exhibitions and strategic distribution alliances.

• Product Innovation: Introduction of tech-integrated and design-focused bath fittings to meet modern consumer preferences.

• Working Capital Enhancement: Improved liquidity to offer extended credit and reduce debt dependency.

• Relationship Building: Focused efforts on retaining and expanding the existing customer base.

Industry Landscape

The Indian bath fittings and sanitary ware industry is valued at USD 318.8 million (2023) and is growing at a CAGR of 7.9%, with significant demand stemming from urbanization, real estate growth, and government sanitation programs like Swachh Bharat Abhiyan.

Market drivers include:

• Urban housing boom

• Growing preference for premium and water-efficient products

• Large-scale infrastructure projects in hospitality, healthcare, and education

However, the industry is also grappling with:

• Price sensitivity

• Stiff competition

• Operational risks due to supply chain bottlenecks and regional dependencies

Risks and Challenges

Ganga Bath Fittings, while positioned for growth, operates in a challenging environment that presents notable risks:

1. Raw Material Volatility: Input costs—especially brass, steel, and plastic—can be unpredictable and have previously constituted over 141% of income.

2. Supplier Concentration: 87% of raw materials are sourced from Gujarat, exposing the company to regional risks.

3. Geographic Dependence: All operations are concentrated in Rajkot, Gujarat, increasing vulnerability to local economic or policy shifts.

4. Workforce Reporting Issues: Inconsistencies between factory license records and PF filings could raise compliance red flags.

5. Operational Hazards: Use of high-risk materials and manufacturing processes (e.g., brass melting) exposes the company to safety and disruption risks.

Final Thoughts on Listing and Outlook

The 20.4% listing premium reflects market confidence, especially given that the IPO didn't command any grey market buzz. The company has presented a compelling growth story supported by strong promoter experience, a wide product range, and expansion plans.

However, potential investors must consider the geographic and raw material concentration risks, along with the price-sensitive nature of the Indian sanitaryware market. Going forward, the success of Ganga Bath Fittings will hinge on its ability to scale operations, manage costs, and innovate its product line in line with consumer expectations.

As of December 2025, the company employs 123 staff members and is supported by Axis Bank as its banker and Jawa Capital Services as the lead manager. The IPO marks a new chapter in its journey from a regional manufacturer to a national brand in the making.

Disclaimer

This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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The Current active IPO are Jainik Power Cables, Sacheerome Limited.

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