Ganga Bath Fittings IPO: Issue booked 64% on the second bidding day led by QIBs, retail investors. Check GMP

A Promising Turnaround on Day 2 of Bidding

The Initial Public Offering (IPO) of Ganga Bath Fittings India Ltd. garnered 64% subscription by the end of the second day of bidding, marking a positive turn from a muted start on Day 1. The surge in demand was notably led by Qualified Institutional Buyers (QIBs) and retail individual investors, signaling growing investor confidence in the niche sanitaryware player.

Launched on June 4, 2025, the IPO is scheduled to remain open for subscription till June 6. Ganga Bath Fittings aims to raise around ₹60 crore through a fresh issue of equity shares, with the price band fixed at ₹95–₹100 per share. The lot size has been set at 1,200 shares.

Subscription Status Across Investor Categories

According to data available on the NSE till 5 PM on Day 2:

• QIBs subscribed 1.02 times their reserved portion.

• Retail investors bid for 75% of their quota.

• Non-Institutional Investors (NIIs), however, showed relatively limited participation, subscribing only 18% of their allocated shares.

The overall subscription reaching 64% on Day 2 indicates improving sentiment, particularly as QIB interest typically sets the tone for the final day.

Grey Market Premium (GMP) Indicates Modest Listing Gains

Market observers report that the Grey Market Premium (GMP) for Ganga Bath Fittings IPO is currently hovering around ₹12–₹15 per share. This suggests a potential listing price of ₹112–₹115, translating to a 12%–15% premium over the upper end of the price band.

Analysts, however, caution that GMP is an informal indicator and not always a reliable measure of listing-day performance.

"The positive GMP reflects short-term interest, likely driven by the company's brand reputation in Tier-II and Tier-III cities," said Ravi Jagtiani, IPO analyst at Mehta Equities. “Investors must also evaluate the company's financial fundamentals before investing purely on grey market sentiment.”

Company Overview: Plumbing Its Way to the Top

Founded in 1996, Ganga Bath Fittings India Ltd. is a reputed manufacturer of sanitary fittings, faucets, bathroom accessories, and allied plumbing products. With a pan-India distributor network and a strong presence in smaller towns and semi-urban areas, the company has positioned itself as an affordable quality player in a market dominated by premium brands like Jaquar and Hindware.

The company plans to utilize the net proceeds from the IPO for:

• Expanding its manufacturing capacity

• Strengthening the supply chain and warehousing

• Investing in brand building and marketing

• Meeting general corporate expenses

Ganga reported a revenue of ₹118.4 crore in FY24, up from ₹92.6 crore in FY23, showing a 28% YoY growth. Net profit also improved to ₹11.2 crore, reflecting operational efficiency and expanding margins.

Analyst Take: Valuation, Sector Outlook, and Listing Potential

Experts believe the IPO is reasonably priced given the company’s earnings and future growth prospects. At the upper band of ₹100, the stock is valued at a P/E multiple of 16.3x, which appears competitive when compared with sector peers trading at higher multiples.

“The valuation is fair considering the brand’s potential in semi-urban India,” said Namrata Desai, Senior Equity Research Analyst at Reliance Securities. “However, the company operates in a fragmented market with heavy competition, which could impact margins.”

The Indian bath fittings market is expected to grow at a CAGR of over 8% in the next five years, driven by urbanization, increasing disposable incomes, and rising aspirations for modern home interiors. Ganga’s focused pricing and distribution strategy could help it capitalize on this trend.

Should You Subscribe?

Retail investors looking for moderate listing gains and long-term brand-driven growth might find the IPO appealing. However, experts urge caution due to sector cyclicality and rising raw material costs that could affect profitability in the near term.

“Those with a higher risk appetite and a 2–3 year horizon can consider applying,” says Desai. “But listing gains may be modest, so expectations should be tempered.”

Final Word: All Eyes on Final Day Bidding

With strong QIB interest already in place, all eyes are now on the final day of bidding. If Non-Institutional Investors step up participation on Day 3, the issue could sail through with full subscription.

Market watchers believe the IPO could close with an oversubscription of 1.5x–2x, depending on last-minute investor momentum and broader market sentiment.