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In this Share Market News Article you are going to find out details about Ganga Bath Fittings IPO. Read it full for full detail. It will be useful.
Ganga Bath Fittings IPO Full Detail :
IPO Timeline
- Opens: June 4, 2025
- Closes: June 6, 2025
- Expected Listing Date: June 11, 2025
- Exchange: NSE Emerge (SME platform)
IPO Details
- Type of Issue: Book-built SME IPO (only fresh issue, no offer for sale)
- Total Issue Size: ₹32.65 crore
- Shares Offered: 66.63 lakh equity shares
- Price Band: ₹46 to ₹49 per share
- Minimum Lot Size: 3,000 shares
- Minimum Investment: ₹1,38,000 for retail investors
Use of IPO Funds
The company plans to use the money raised for:
- Buying new machinery to expand manufacturing
- Repaying some of its loans
- Meeting day-to-day working capital needs
- General corporate purposes
About the Company
Ganga Bath Fittings Ltd, based in Gujarat, was started in 2018. It manufactures a range of bath fittings and sanitaryware like:
- CP taps and showers
- ABS bathroom accessories
- Stainless steel sinks
- Door handles and vanities
They sell their products through a large network of over 2,500 distributors across India.
Financial Snapshot
- FY 2023-24 Revenue: ₹32.01 crore
- FY 2023-24 Net Profit: ₹2.47 crore
- April–Dec 2024 (9 months) Revenue: ₹32.3 crore
- Net Profit (9 months): ₹4.52 crore
This shows strong recent growth and profitability.
IPO Allotment Breakdown
- Retail Investors: ~47%
- High Net-Worth Individuals (HNIs): ~47%
- QIBs (Institutional): ~1%
- Market Maker: ~5%
Extra Reference :
Financial Performance of Ganga Bath Fittings Ltd :
Key Financial Metrics (for the period ending December 31, 2024)
| Metric | Value | What it Indicates |
|---|---|---|
| EBITDA | ₹567.87 lakhs | Reflects strong operational performance before interest, tax, depreciation, and amortization. |
| EBITDA Margin | 25.29% | Indicates efficient cost control and profitability from core operations. |
| PAT (Profit After Tax) | ₹360.65 lakhs | Shows healthy net profit after covering all expenses and taxes. |
| ROE (Return on Equity) | 16.30% | Demonstrates good returns to shareholders by effectively using their invested capital. |
| ROCE (Return on Capital Employed) | 21.91% | Highlights strong returns on total capital employed (debt + equity), showing business efficiency. |
What This Tells Us About the Company Ganga Bath Fittings Ltd :
- The 25.29% EBITDA margin shows that the company is managing its costs efficiently and earning well from its main business.
- A PAT of ₹360.65 lakhs suggests strong profitability and a growing bottom line.
- ROE of 16.30% indicates the company is using shareholders’ money wisely to generate returns.
- ROCE of 21.91% means the business is putting both borrowed and owned capital to very productive use.
Investor Category-wise Allotment in Ganga Bath Fittings IPO
From the Red Herring Prospectus, here’s how shares are allocated across different investor categories:
| Investor Category | No. of Equity Shares | % of Net Issue |
|---|---|---|
| Qualified Institutional Buyers (QIBs) | 69,000 shares | 1.10% |
| Non-Institutional Investors (NIIs) | 31,29,000 shares | 49.45% |
| Retail Individual Investors (RIIs) | 31,29,000 shares | 49.45% |
Total Net Issue: 63,27,000 equity shares
Analysis: Is It a Positive Sign for Investors?
✅ High Allocation to Retail and NII (Nearly 99%)
- This indicates the IPO is structured primarily for small and mid-sized investors, rather than institutional players.
- It may attract broad investor interest and ensure strong retail participation.
✅ QIB Allocation at Just 1.10%
- This is unusually low compared to typical IPOs (where QIBs often get up to 50%).
- It could indicate either:
- The company is focusing on retail and SME investors, or
- Lack of strong QIB backing, which may be seen as a mild risk factor by conservative investors.
🟡 No Anchor Investors
- There is no mention of anchor QIBs, which could have added institutional confidence.
Should You Invest?
- For short-term gains: The IPO’s affordable pricing and strong retail focus may help generate listing-day interest.
- For long-term investors: Review fundamentals like ROE (16.3%), ROCE (21.9%), EBITDA margin (25.3%) — all of which are strong.
- Caution: The very low QIB portion suggests limited institutional oversight. Perform due diligence on post-IPO use of funds and management credibility.
Conclusion : Extra Info on Ganga Bath Fittings IPO
Financial Condition & Future Prospects of Ganga Bath Fittings Limited
| Aspect | Details | Assessment |
|---|---|---|
| Revenue (FY 2024) | ₹29.68 crore | Good |
| Profit After Tax (FY 2024) | ₹5.72 crore | Good |
| Net Profit Margin | Approximately 19.3% (Calculated as ₹5.72 crore / ₹29.68 crore) | Strong |
| Company Age | Incorporated in May 2024; evolved from a partnership firm established in 2018 | New but Experienced |
| IPO Size | ₹32.65 crore | Moderate |
| IPO Objectives | – Capital expenditure for equipment/machinery – Repayment/prepayment of certain borrowings – Funding working capital requirements – General corporate purposes | Strategic |
| Listing Platform | NSE Emerge (SME segment) | SME Focused |
| Debt Position | Active open charges totaling ₹7.55 crore | Moderate |
| Management Experience | Promoters with over 20 years in manufacturing and trading | Experienced |
| Product Portfolio | Wide range of bathroom accessories and sanitaryware, including ABS showers, health faucets, taps, and accessories | Diversified |
| Manufacturing Facility | State-of-the-art plant located in Shapar-Veraval, Gujarat | Modern |
| Employee Feedback | Average rating of 3.1/5 on AmbitionBox, indicating moderate satisfaction with company culture and benefits | Average |
| Future Prospects | – Growing demand in real estate and construction sectors – Plans to expand product range and market reach – Utilization of IPO funds for capacity expansion and debt reduction | Positive |
All in all :
Ganga Bath Fittings Limited exhibits a strong financial foundation with a healthy profit margin and strategic plans for growth. The company’s experienced management and diversified product portfolio position it well in the competitive bathroom fittings market. The IPO proceeds are aimed at enhancing operational capacity and financial stability, which could further bolster its market presence.
However, potential investors should consider the company’s recent incorporation as a public entity and its current debt levels. Overall, the company’s prospects appear promising, especially with the anticipated growth in the construction and real estate sectors.
Final Words :
Ganga Bath Fittings Limited – Investment Analysis
| Parameter | Factors | Outlook |
|---|---|---|
| 🔹 Short-Term Factors | – Listing on NSE Emerge (SME platform) may limit liquidity but provide price discovery – Reasonable IPO size (₹32.65 Cr) supports post-listing gains – Healthy PAT margin (19.3%) attracts retail interest early on – SME IPOs often rally post-listing if sentiment is positive | Moderately Bullish |
| 🔹 Long-Term Factors | – Industry demand supported by urbanization & housing growth – Experienced promoters in sanitaryware market – Diversified product portfolio – Use of IPO funds for expansion and debt reduction is growth-oriented | Bullish |
| 🟢 Bullish Factors | – Strong profit margin (~19%) and low revenue base give high scalability – Focused expansion plan with modern manufacturing – Presence in a fast-growing segment (sanitaryware/bath fittings) – Established operational history since 2018 | Bullish |
| 🔴 Bearish Factors | – Client concentration risk could affect revenue stability – SME segment lacks institutional interest and liquidity – Currency/input price volatility (metals like brass, steel) – Pending litigations pose reputational and financial risks | Moderately Bearish |
| 💹 Promoter Experience | Over 20 years in relevant industry | Positive |
| 📊 Market Sentiment (IPO) | Early SME IPOs in 2025 have seen mixed performance depending on fundamentals and grey market premium (GMP) | Neutral to Positive |
Summary:
- Short-Term: Likely moderate rally post-listing due to good margins and IPO buzz, but liquidity risk remains due to SME platform.
- Long-Term: Strong potential due to industry demand, experienced promoters, and sound use of IPO funds.
- Bullish View: Backed by financials, growth plans, and a favorable market segment.
- Bearish View: External risks (client concentration, litigation, raw material prices) may impact stability.
Recommendation :
- For Long-Term Investors: ✅ Yes – Good fundamentals, experienced promoters, and a growing market make it a promising SME investment with patience.
- For Listing Gains / Traders: ⚠️ Cautiously Optimistic – Possible moderate gains, but be mindful of SME liquidity and early volatility.
- For Conservative Investors: ❌ Might Avoid – Due to liquidity and client/litigation risk unless willing to hold long term.
I hope you liked this Ganga Bath Fittings IPO related Investment details.
Happy Investing
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