Ganesh Consumer Products IPO Sees Tepid Response on Day Two
Ganesh Consumer Products Ltd.'s IPO, aiming to raise Rs 408.80 crore, is experiencing a sluggish response with only 0.18 times subscription on its second day. The offering includes a fresh issue and an OFS, priced at Rs 306-322 per share. Subscription breakdown shows retail investors at 0.32 times, non-institutional at 0.11 times, and no institutional participation yet. The grey market indicates a modest Rs 10 premium. The IPO closes on September 24, with listing expected on September 29.
*this image is generated using AI for illustrative purposes only.
Ganesh Consumer Products Ltd., an FMCG company specializing in food grain flours, is witnessing a sluggish response to its Initial Public Offering (IPO) as it enters its second day of subscription. The IPO, which aims to raise Rs 408.80 crore, has been subscribed only 0.18 times so far, indicating a lukewarm reception from investors.
IPO Details
The company's public offering consists of:
- A fresh issue of 40 lakh shares to raise Rs 130.00 crore
- An offer-for-sale (OFS) of 87 lakh shares to raise Rs 278.80 crore
The IPO is priced in the range of Rs 306-322 per share, with a minimum investment requirement of Rs 14,812 for retail investors, equivalent to 46 shares.
Subscription Breakdown
As of day two, the subscription details stand as follows:
- Institutional investors: Nil
- Non-institutional investors: 0.11 times
- Retail investors: 0.32 times
Grey Market Premium
The grey market is showing a modest premium of Rs 10, suggesting an estimated listing price of Rs 332.
IPO Timeline
| Event | Date |
|---|---|
| Opening date | September 22 |
| Closing date | September 24 |
| Expected listing | September 29 |
Market Sentiment
The low subscription rate of 0.18 times on the second day suggests a cautious approach from investors. The retail portion, while leading in subscriptions, is still significantly undersubscribed at 0.32 times. The complete absence of institutional investors' participation so far is notable and may be a point of concern for the company.
The modest grey market premium of Rs 10 indicates tepid enthusiasm in the unofficial market, with expectations of only a slight uptick from the upper price band on listing.
As the IPO enters its final day, it remains to be seen whether there will be a surge in subscriptions, particularly from institutional investors, which could significantly impact the overall subscription status.
Investors considering this IPO should carefully evaluate the company's financials, growth prospects, and the overall market conditions before making an investment decision.
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