The Ganga Bath Fittings IPO, valued at ₹32.65 crore, has seen a solid response, reaching 82% subscription on its second day of bidding, June 5, 2025. This SME IPO, listed on the NSE Emerge platform, is drawing attention for its focus on expanding manufacturing capabilities in the booming Indian sanitary ware market. By 3:20 PM IST, the issue had received applications for 54,33,000 equity shares against the 66,63,000 shares offered, as per NSE data. Here’s a detailed look at the IPO’s price band, lot size, financials, and what investors need to know before subscribing.
Ganga Bath Fittings IPO: At a Glance
Ganga Bath Fittings Limited, based in Rajkot, Gujarat, specializes in manufacturing high-quality bathroom accessories, including CP taps, sanitary ware, showers, bathroom vanities, and sinks. The company markets products under its own brands—Ganga, Glimpse, Stepian, and Tora—while also serving as a contract manufacturer for OEMs. With a distribution network spanning 2,500+ dealers across India, the company is well-positioned to meet the growing demand for premium bathroom fittings.
The IPO, which opened on June 4, 2025, and closes on June 6, 2025, is a fresh issue of 66.63 lakh equity shares, with no offer-for-sale component. The funds raised will support capital expenditure, debt repayment, working capital needs, and general corporate purposes, paving the way for operational growth and financial stability.
Subscription Status: Day 2 Insights
As of 3:20 PM IST on June 5, 2025, the IPO has been subscribed 0.82 times, with the following category-wise breakdown:
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Retail Investors: Subscribed 0.79 times, indicating steady retail participation.
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Non-Institutional Investors (NIIs): Subscribed 0.26 times, reflecting cautious interest.
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Qualified Institutional Buyers (QIBs): Subscribed 2.22 times, showcasing strong institutional demand.
The subscription momentum is expected to pick up on the final day, driven by institutional and retail interest in the SME sector.
IPO Price Band and Lot Size
The IPO’s price band is set at ₹46 to ₹49 per share, making it an affordable option for retail investors. The minimum lot size is 3,000 shares, requiring a minimum investment of ₹1,38,000 at the lower price band and ₹1,47,000 at the upper end. Investors can bid in multiples of 3,000 shares, with HNIs required to apply for at least two lots (6,000 shares), equating to ₹2,94,000 at the upper price band.
Applications can be made via the ASBA process through banks or brokers, or via UPI through platforms like Zerodha, Upstox, or Groww.
Key IPO Dates
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Subscription Window: June 4–6, 2025
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Allotment Finalization: June 9, 2025
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Shares Credited to Demat: June 10, 2025
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Listing Date: June 11, 2025 (NSE Emerge)
Investors can check allotment status on Kfin Technologies Limited’s website or through NSE/BSE platforms.
Fund Utilization
The ₹32.65-crore net proceeds will be allocated as follows:
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₹20.13 crore: Investment in modern machinery to boost manufacturing capacity.
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₹5.32 crore: Repayment of existing borrowings to reduce debt.
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₹2.70 crore: Meeting working capital requirements.
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Balance: General corporate purposes to support innovation and market expansion.
Jimmy Tusharkumar Tilva, Managing Director, emphasized, “This IPO will fuel our vision for the future, enabling us to invest in modern machinery, improve our manufacturing scale, and strengthen our financial foundation.”
Financial Snapshot
Ganga Bath Fittings has shown promising financial performance:
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FY24: Revenue of ₹31.89 crore and a net profit of ₹2.48 crore.
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Nine Months Ended December 2024: Revenue of ₹32.29 crore and a net profit of ₹4.53 crore, reflecting strong growth.
The company’s revenue grew by 4.3% from FY23 to FY24, while net profit surged significantly, driven by operational efficiency and rising demand for its products. Its diversified revenue streams—branded products, OEM manufacturing, and traded goods—provide stability in a competitive market.
Grey Market Premium (GMP)
As of June 5, 2025, the GMP for the IPO is ₹3.5, implying a 7% premium over the upper price band of ₹49. This suggests a potential listing price of around ₹52.5 per share, offering modest listing gains. However, GMP is speculative and should not be the sole basis for investment decisions.
Why Consider Ganga Bath Fittings IPO?
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Industry Growth: The Indian sanitary ware market is projected to grow at a 7.9% CAGR through 2029, driven by urbanization and demand for premium fittings.
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Strong Fundamentals: Consistent revenue and profit growth make it a solid long-term investment.
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Wide Reach: A network of over 2,500 dealers ensures robust market penetration.
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Strategic Fund Use: Investments in machinery and debt reduction will enhance efficiency and profitability.
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Experienced Leadership: Promoters with over 30 years of industry experience provide strategic direction.
Potential Risks
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High Competition: The sanitary ware market includes dominant players like Hindware and Cera Limited.
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Cash Flow Concerns: Posts on X highlight a weak cash conversion cycle, with ₹1.5 crore in operating cash flow against ₹4.5 crore in profit for 9MFY25.
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Long Working Capital Cycle: A 293-day cycle, including 287 days for inventory, may pose liquidity challenges.
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Modest GMP: The low GMP of ₹3.5 indicates limited short-term listing gains.
How to Apply
To subscribe to the Ganga Bath Fittings IPO:
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Demat Account: Ensure you have an active Demat account with a broker like Zerodha or Upstox.
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Navigate to IPO Section: Access the IPO section on your broker’s platform and select Ganga Bath Fittings IPO.
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Enter Details: Input the lot size (minimum 3,000 shares) and bid price (preferably ₹49 for cutoff).
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Submit via ASBA/UPI: Complete the application using ASBA or UPI through your bank or broker.
For more details, visit the company’s RHP on SEBI’s website or NSE Emerge.
Conclusion
The Ganga Bath Fittings IPO offers a compelling opportunity for investors seeking exposure to the growing sanitary ware market. With a strong subscription rate of 82% on Day 2, robust financials, and a clear growth strategy, the IPO is well-positioned for long-term investors. However, the modest GMP and competitive industry dynamics warrant caution for short-term traders. Investors should evaluate the company’s fundamentals and market potential before applying by June 6, 2025.
Disclaimer: IPO investments carry market risks. Consult a financial advisor and review the RHP before investing.
