Ganesh Consumer Products shares make a flop market debut; stock lists at 8% discount

Shares of Ganesh Consumer Products disappointed investors at its Dalal Street debut on Monday, September 29, as the Ashish Kacholia-backed FMCG player was listed at Rs 295 on NSE, a discount of 8.39 per cent over issue price of Rs 322 apiece. The stock kicked-off its maiden trading session at a discount of 8.06 per cent over the issue price at Rs 296.05 on BSE.

Listing of Ganesh Consumer Products has been worse than the expectations lines. Ahead of its listing, shares of the company were commanding a discount of Rs 9-10 in the grey market, suggesting a discounted debut for the investors. Investors of Ganesh Consumer Products saw a loss of Rs 1,242 on each lot of 46 equity shares worth Rs 14,812, as of listing price

The IPO of Ganesh Consumer Products ran for subscription between September 22 and September 24. It had offered its shares in the price band of Rs 306-322 per share with a lot size of 46 shares. The company raised a total of Rs 408.80 crore from its IPO, which included fresh share sale Rs 130 crore and an offer-for-sale (OFS) of up to 86,58,333 equity shares worth Rs 278.80 crore.

The issue was overall subscribed only 2.67 times, fetching nearly 80,000 applications. The portion for qualified-institutional bidders (QIBs) was subscribed 4.18 times. The allocation for non-institutional investors (NIIs) was booked 4.34 times. The portions for retail investors and employees were subscribed 1.45 times and 2.03 times, respectively.

Incorporated in 2000, Kolkata-based Ganesh Consumer Products is a FMCG company, a brand of wheat-based derivatives (maida, sooji, dalia) in East India. It offers a range of consumer staples, including whole wheat flour, value-added flour products (maida, sooji, besan), packaged instant food mixes, spices, ethnic snacks, and ethnic flours like singhara and bajri flour.

Brokerage firms has a mixed views on the IPO of Ganesh Consumer Products. DAM Capital Advisors, IIFL Capital Services and Motilal Oswal Investment Advisors were the book running lead managers for the IPO of Ganesh Consumer Products, while MUFG Intime India was appointed as the registrar of the issue.