3rd largest brand of packaged whole wheat flour and the largest brand of wheat-based derivatives in East India.
MUMBAI, Dec 27 (The CONNECT) – Kolkata-based FMCG Player Ganesh Consumer Products Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).
Ganesh Consumer Products is the third largest brand of packaged whole wheat flour (atta) and largest brand of wheat-based derivatives (maida, sooji, dalia) in East India, in terms of value sold in Fiscal 2024,
The IPO, with a face value of Rs 10, is a mix of fresh issue of shares up to Rs 130 crore and an offer-for-sale up to 12.44 million equity shares by Promoter and Investor Selling Shareholders.
The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The Offer for Sale consists of shareholders selling shares up to 29,46,225 equity shares by Manish Mimani, up to 1,45,494 equity shares by Madhu Mimani, up to 31,79,124 equity shares by India Business Excellence Fund II, up to 61,71,246 equity shares by India Business Excellence Fund IIA.
The company, in consultation with the BRLMS, may consider a further issue of equity shares through a private placement, preferential allotment or any other method aggregating up to Rs 26 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
- Please cehck – INDIAN PUBLIC OFFERING
The proceeds from the fresh issue to the extent of Rs 50 crore will be used for prepayment and/or repayment of all or a portion of certain outstanding borrowings availed by the company, Rs 50 crore will be use funding capital expenditure for the setting up of a roasted gram flour and gram flour manufacturing unit in Darjeeling, West Bengal and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Ganesh Consumer Products, established in 1936 with its flagship brand “Ganesh,” is a market leader in packaged sattu (42% share) and besan (5% share) in East India, according to the Technopak Report in the DRHP. The company also holds a 41% share by value in West Bengal for wheat-based products like atta, maida, sooji, and dalia. As of September 30, 2024, its portfolio includes 42 products with 215 SKUs, spanning staples, spices, ethnic snacks, and emerging food categories.
Under the leadership of Promoter and Managing Director Manish Mimani, Ganesh Consumer Products was corporatised in 2000. It primarily operates through its B2C segment, contributing 77.63% of revenues as of June 30, 2024, while also serving B2B clients and selling manufacturing by-products. Its omni-channel distribution spans over 70,000 retail outlets, modern trade stores, and e-commerce platforms, supported by seven strategically located manufacturing facilities across West Bengal, Uttar Pradesh, and Telangana. The company sources raw materials from a reliable network of suppliers across major states, many of whom have been partners for over a decade.
The company has consistently innovated its offerings to cater to evolving consumer needs. Over the past three years, it has launched 11 new products, including chocolate sattu, jal jeera sattu, and ethnic snacks, along with 94 new SKUs, further expanding its reach and appeal. Leveraging the trust and legacy of its brand, Ganesh Consumer Products ensures over 95% of its general trade sales operate on a ‘cash and carry’ basis, reinforcing its strong financial discipline.
Ganesh Consumer Products also boasts one of the largest distribution networks in East India, supported by a diverse procurement base and robust relationships with farmers and suppliers. Its modern trade partnerships with regional and national players, alongside an expanding digital footprint through e-commerce platforms, underline its commitment to meeting the needs of a growing and diverse customer base across India.
Ganesh Consumer Products Limited’s revenue from operations grew at a CAGR of 29.16% from Rs. 455.00 crore in FY22 to Rs. 759.07 crore in FY24, highest among the key industry peers. Profit for the year 2024 was at Rs. 26.99 crore against Rs. 27.11 crore in FY22.
For the three months ended June 30, 2024, revenue from operations stood at Rs.189.46 crore and Profit after tax stood at Rs 13.43 crore.
DAM Capital Advisors Limited, IIFL Capital Services Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
