Ganga Bath Fittings listed on NSE SME at ₹59 price with 20.4% premium over issue price

The bathroom accessories manufacturer, Ganga Bath Fittings Limited, has made a strong debut on the NSE SME platform. After closing its IPO bidding between June 4- June 6, 2025, the company made its stock market debut on June 11, 2025, at a 20.4% premium to the issue price, rewarding investors with positive returns. This book-building IPO raised ₹32.65 crore with a modest subscription of 1.64 times, marking a positive milestone for India's bathroom fittings sector as the company aims to expand production capacity through capital expenditure for new machinery and equipment.

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3B Films IPO Listing Details

Ganga Bath Fittings Limited launched its IPO through the book-building process, and the Ganga Bath Fittings stock price was set at ₹49 per share. The minimum investment required was 3,000 shares costing ₹1,47,000. The IPO received a modest response with an overall subscription of 1.64 times - retail segment at 2.55 times, QIB at 2.22 times, and NII at 0.73 times by the final day of bidding, indicating mixed investor interest across categories. Ganga Bath share price is listed at ₹59 on NSE SME, offering a 20.4% premium over the issue price. Ganga Bath's stock price debut reflects strong market sentiment despite modest IPO subscription.

Listing Price: The Ganga Bath Fittings share price opened at ₹59 on NSE SME on June 11, 2025, representing a premium of 20.4% over the issue price of ₹49, providing immediate gains to investors at listing.

First-Day Trading Performance Outlook

Ganga Bath Fittings IPO commenced trading on NSE SME on June 11, 2025, witnessing a strong stock market debut. The Ganga Bath Fittings share price opened at ₹59, marking a 20.4% premium over its IPO price of ₹49, delivering positive returns to investors at listing. The company entered the market with established operations in bathroom accessories manufacturing, serving over 2,500 distributors across India and maintaining a diverse product portfolio of 432 SKUs across different segments, including CP taps, showers, sanitary ware, and ABS accessories.

Market Sentiment and Analysis

Ganga Bath Fittings Limited, incorporated in 2018, operates as a manufacturer and supplier of bathroom accessories under the brand name "Ganga." The company's product portfolio encompasses CP taps, showers, sanitary ware, ABS health faucets, ABS taps and accessories, door handles, PTMT taps, SS showers, sinks, and vanities. Operating from its state-of-the-art manufacturing facility in Shapar-Veraval, Gujarat, the company employs advanced technology and skilled manpower to ensure product excellence, maintaining ISO 9001:2015 certification for Quality Management Systems.

Performance Indicators: Ganga Bath Fittings demonstrated steady financial performance with revenue growth of 4.3% to ₹32.01 crore in FY25 and significant profitability improvement with PAT jumping to ₹2.48 crore in FY24 from ₹0.31 crore in FY23.

Growth Drivers and Challenges

3B Films presents growth potential with its specialised CPP and CPE films manufacturing capabilities, advanced production facilities, and expanding export presence. The rising demand for flexible packaging solutions in food and consumer goods sectors supports its business prospects. However, the company faces significant challenges including intense competition in the packaging industry, high debt levels, modest investor interest reflected in weak subscription, and concerns about recent revenue decline affecting growth trajectory.

Growth Drivers:

Ganga Bath Fittings presents growth potential with its established brand presence, extensive distributor network, and diversified product portfolio in the bathroom accessories sector. The rising demand for premium bathroom fittings, driven by urbanisation and infrastructure development, supports its business prospects. However, the company faces challenges including intense competition in the fragmented bathroom fittings market, concerns about aggressive pricing noted by analysts, and the need for continuous product innovation to maintain market position.

• Diversified Product Portfolio: Comprehensive range of 432 SKUs across CP bath fittings, sanitary ware, PTMT taps, stainless steel showers, and ABS accessories
• Strong Distribution Network: Established network of over 2,500 distributors across India with long-standing relationships providing wide market reach
• Advanced Manufacturing Infrastructure: State-of-the-art facility in Gujarat with ISO 9001:2015 certification ensuring quality standards and operational excellence
• Experienced Management Team: Skilled leadership with R&D capabilities and focus on customised component manufacturing based on customer specifications
• Brand Recognition: Established "Ganga" brand presence in the bathroom accessories market with a focus on quality and timely delivery
   

Challenges:

• Intense Market Competition: Operating in a highly competitive and fragmented bathroom fittings market with pressure from established players and pricing challenges
• Aggressive Valuation Concerns: Analysts are noting aggressive pricing of the issue based on financial data, suggesting potential overvaluation risks
• Static Revenue Growth: Relatively modest revenue growth with almost static top lines between FY23 and FY24, raising questions about market momentum
• Working Capital Requirements: Continuous funding needs for inventory management, production scaling, and maintaining distributor relationships

Utilisation of IPO Proceeds

Ganga Bath Fittings plans to utilise the ₹32.65 crore raised from the fresh issue to strengthen its production capabilities and support strategic business expansion.

• Capital Expenditure: ₹20.13 crore allocated for capital expenditure towards the purchase of equipment and machinery to expand production capacity and enhance manufacturing capabilities.
• Debt Repayment: ₹5.33 crore designated for repayment and prepayment of certain borrowings to reduce financial burden and improve debt-to-equity ratio.
• Working Capital: Funding for incremental working capital requirements to support business operations and inventory management.
• General Corporate Purposes: Remaining funds earmarked for general business needs and corporate initiatives to support strategic growth plans.
   

Financial Performance of 3B Films IPO

Ganga Bath Fittings has shown steady financial performance with improving profitability metrics:

• Revenue: ₹32.31 crore for December 2024, demonstrating consistent business momentum with growth from ₹32.01 crore in FY25, reflecting stable market demand for bathroom accessories.
• Net Profit: ₹4.53 crore in December 2024, showing a strong growth trajectory from ₹2.48 crore in FY24, showcasing improved operational efficiency and margin expansion.
• Financial Metrics: The company shows a strong ROE of 15.07% and an impressive ROCE of 29.80%, with a manageable debt-to-equity ratio of 0.87, indicating a balanced financial structure.
   

Ganga Bath Fittings offers an attractive investment opportunity in the bathroom accessories manufacturing sector with its established brand presence, extensive distributor network, and strong financial performance improvement. While it faces challenges like intense competition and concerns about aggressive valuation, its manufacturing expertise and expansion plans position it well for capitalising on India's growing demand for quality bathroom fittings, driven by urbanisation and infrastructure development. The strong listing performance with a 20.4% premium reflects positive investor sentiment towards the company's business model and growth prospects in the bathroom accessories market.