Ganga Bath Fittings IPO

About Ganga Bath Fittings IPO

Ganga Bath Fittings Limited IPO is an IPO of up to 66,64,000 equity shares. It consists of a fresh issue of up to 66,64,000 equity shares. The lot size for the IPO is 3000 shares. The price range of the IPO is ₹46 to ₹49. The shares will be allotted on June 9, 2025. The credit of shares to the demat account will take place on June 10, 2025, and the initiation of refunds will take place on Jun 10, 2025.

Objective of Ganga Bath Fittings IPO

• Capital expenditure towards the purchase of equipment/machinery, etc.
• Repayment/prepayment of certain borrowings availed by the company.
• Funding working capital requirements.
• General corporate purposes.

Industry Outlook

The India sanitary ware market was valued at USD 31.88 crore in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 7.9% through 2029. The India sanitary ware market is a dynamic and rapidly evolving sector within the country's construction and home improvement industry. Sanitary ware encompasses a wide range of products, including toilets, washbasins, faucets, showers, and bath accessories, all designed for use in residential, commercial, and institutional spaces.

India is experiencing a profound shift towards urban living, with millions of people moving to cities and towns in search of better opportunities. This urbanisation has spurred the construction of residential and commercial properties, leading to increased demand for modern and aesthetically pleasing sanitary ware products.

Consumers are increasingly inclined toward bathroom spaces that offer comfort, style, and water efficiency. As a result, there is a growing demand for premium and technologically advanced sanitary ware products that enhance the overall bathroom experience.

Company Information

Presently, Ganga Bath Fittings Limited is engaged in the business of manufacturing and supplying bathroom accessories, including but not limited to bath fittings items such as CP taps and their parts, showers, bath accessories, sanitaryware, ABS showers, ABS health faucets, ABS taps, ABS accessories, PTMT taps, door handles, bathroom vanities, bathroom sinks, SS showers, shower drains, SS channel drainers, etc. Their manufacturing facilities are technologically aligned to develop and manufacture products that adhere to the stringent quality control requirements of their customers. They also manufacture customised components as per their customers' specific requirements, while ensuring their products meet quality standards and are manufactured according to their customers' specifications in a timely manner. They also offer personalised services to their strong customer base across India.

Risks of Ganga Bath Fittings IPO

• Their business operations are concentrated in Gujarat. Any adverse developments affecting their operations in this region could have a significant impact on their revenue and results of operations.

• Their operations involve melting of brass scrap in furnaces, which can be extremely dangerous, and any accident could cause serious injury to people or property, which may adversely affect their production schedules, costs, sales and ability to meet customer demand.

• They are dependent on third-party transportation providers for procuring raw materials and for delivery of their finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well as the extent and reliability of Indian infrastructure, may have an adverse effect on their business, financial condition, results of operations and prospects.

*Source: The Company’s Financial Figures are based on restated standalone audited financial statements for the period from May 22, 2024 to June 30, 2024 unless provided otherwise. With respect to Industry peers, all the financial information mentioned above is on a standalone basis and is sourced from the audited results of the respective companies for the year ended March 31, 2024 unless provided otherwise.

** Notes for peer group:

a) P/E Ratio has been computed based on the closing market price of equity shares on NSE on March 29, 2024 divided by the Basic EPS as at March 31, 2024.

b) Return on Net Worth (%) = net profit after tax divided by net worth. Net worth has been computed as the aggregate of share capital and reserves and surplus/Other Equity as on March 31, 2024.

c) NAV is computed as NAV is computed as the closing net worth as on March 31, 2024 divided by the outstanding number of equity shares as on March 31, 2024.

Anchor Investor Information

The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Jawa Capital Services Private Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through the following sources:

Sale of goods manufactured and sold under own brands – Under this vertical, the company manufactures various bath fittings and accessories, and these are then sold under its brand names, viz. Ganga, Glimpse, Stepian, and Tora.

Sale of goods to OEMs on a contract manufacturing basis – Under this vertical, the company manufactures various bath fittings and accessories for third parties under contract manufacturing. The said goods manufactured by the Company are sold under the brand of the third party.

Sale of traded goods – Under this vertical, the company procures sanitaryware, which is then branded and sold under the brand name Ganga.

Company Growth Trajectory

Their revenue from operations increased to ₹13.58 crore for the year that ended on 31 March 2024, as compared to ₹12.18 crore for the year that ended on 31 March 2023. The increase in operating revenue is primarily due to an increase in sale of goods. Their other income increased to ₹0.10 crore for the year that ended on 31 March 2024, as compared to ₹0.0013 crore for the year that ended on 31 March 2023. The EBITDA of the company based on the restated financials was ₹0.76 crore in the financial year 2022, ₹1.40 crore in the financial year 2023 and ₹1.63 crore in the financial year 2024.

Company Market Position

During the financial year that ended March 31, 2024, approximately 93% of products manufactured by the GBS Unit were sold directly to the distributors (B2B customers) and the balance 7% were sold to B2C customers, i.e. sales to OEMs. The company currently has a network of 30 distributors and 2500 dealers/retailers. They share a longstanding relationship with their customers and receive a majority of their business from repetitive clients.

How To Check Allotment Status of Ganga Bath Fittings IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar KFin Technologies Limited.

To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Ganga Bath Fittings Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Ganga Bath Fittings Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Ganga Bath Fittings IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI