As the Indian capital markets prepare to welcome another SME IPO on NSE EMERGE, Ganga Bath Fittings has stepped into the spotlight with a public offering that is drawing the attention of seasoned investors and retail participants alike. Slated to open between 4 to 6 June 2025, the IPO seeks to raise INR 32.65 crore through a fresh issue of 66.63 lakh shares priced between INR 46 – 49 per share.

With no offer-for-sale component, all proceeds from this IPO will be infused directly into the company’s operations — a positive sign for growth-oriented investors. Let’s dig deeper into Ganga Bath Fittings IPO review:

Business Overview – A Robust Product Portfolio and Proven Legacy

Ganga Bath Fittings, originally a partnership firm founded in 2018, has evolved rapidly through several structural transitions — from a partnership firm to LLP, and finally, a public limited company. Under the dynamic leadership of the Tilva family, the company has consolidated its manufacturing operations and now operates through three well-defined units:

1. GPI Unit – Specializes in PTMT Taps, ABS Showers, ABS Faucets, and Accessories.
2. GI Unit – Manufactures CP Taps, Bathroom Vanities, and Sanitary Ware.
3. GBS Unit – Focused on SS Showers, Shower Drains, and Channel Drainers.

Together, these three facilities offer over 430 SKUs, serving a large market of B2B and B2C customers through 30 distributors and over 2,500 retailers/dealers across India.

The company’s product mix includes everything from basic taps to high-end designer bathroom vanities, offering a one-stop solution for bathroom fittings. Brands under its umbrella include Ganga, Glimpse, Stepian, and Tora.

Ganga Bath Fittings IPO Review – Manufacturing Capacity & Utilization

The steady rise in tion is a strong sign of operational leverage — the business is scaling efficiently, and the upcoming capex will only enhance this further.

IPO Fundamentals – Fair Valuation with Efficient Capital Use

Issue Details:

• Price Band: INR 46 – 49 per share
• Fresh Issue Size: 66.63 lakh shares
• Minimum Bid: 3,000 shares or INR 1,47,000
• Retail Allocation: 49.45%
• Listing Platform: NSE EMERGE
• Listing Date: 11 June 2025

Valuation Metrics:

• EPS (FY24): INR 1.51
• P/E Ratio: 30.46 – 32.45
• RoNW: 15.07%
• NAV per Share: INR 10

In comparison, listed peers show weaker fundamentals. Hindware Home Innovation has a negative EPS of INR -4.98 and a P/E ratio of -75.64, while Cera Sanitaryware, though much larger, trades at a higher P/E of 36.88.

Ganga Bath Fittings IPO Review – Financial Performance

Ganga Bath Fittings has demonstrated a consistent upward trend in revenue over the past four years. Based on consolidated financials:

What’s particularly impressive is the company’s shift towards brand-led sales. In FY22, 75.75% of sales came from its own brands — this rose to 68.09% in the 1 April – 31 December 2024 period, despite expanding OEM contracts and sanitary trading.

Use of IPO Proceeds – Focused on Growth and Efficiency

• Capital Expenditure towards purchase of equipment/machineries – INR 18.95 crore
• Repayment/prepayment of certain borrowings availed by the company – INR 5.33 crore
• Funding working capital requirements – INR 2.70 crore
• General Corporate Purpose

Capital Expenditure will directly enhance manufacturing capacity. For instance, two new electric furnaces will increase capacity from 225 MT to 630 MT per annum, nearly a 180% jump. This not only boosts output but also reduces production time significantly.

The grinding machine addition (10 units for INR 59 lakh) is aligned with this capacity ramp-up, signaling readiness to fulfill higher demand efficiently.

Ganga Bath Fittings IPO Analysis – Strengths and Competitive Edge

1. Diverse Product Portfolio: Over 430 SKUs catering to a wide spectrum of consumers.
2. Experienced Management: Over 30 years in bath fittings with industry relationships and domain expertise.
3. Wide Distribution Network: 2,500+ dealers and pan-India presence in states like Gujarat, Tamil Nadu, Maharashtra, and West Bengal.
4. Strong Quality Focus: ISO 9001:2015 certified for design and manufacturing — a key credibility point.
5. Custom Manufacturing Capability: OEM relationships help ensure steady B2B revenue flow.
6. Brand Equity: Products sold under established names — Ganga, Stepian, Tora — build trust.
7. The company claims to offer 250 stock-keeping units (SKUs) in its GI division, 32 SKUs in the GBS division, and 150 SKUs under the GPI segment.

Ganga Bath Fittings IPO Review – Risk Factors

• High Working Capital Dependency & Liquidity Risk – Ganga Bath Fittings relies heavily on working capital (INR 12 crore limit) due to high inventory, employee costs, and delayed receivables. Any funding gap may disrupt operations and cash flow.
• Volatile and Negative Cash Flows – Ganga Bath Fittings reported negative operating cash flow in FY 2024 (-INR 0.99 crore) and Dec 2024 (-INR 1.30 crore), with persistent outflows from investing and financing activities due to asset purchases and finance costs.
• Uncertainty in Consolidated Financials – Unaudited consolidated financials show inconsistent cash positions, e.g., investing cash outflow of INR 0.64 crore (FY24) and financing outflow of INR 0.27 crore, raising concerns about true financial stability.
• Machinery Procurement Delays May Impact Growth – Machinery orders worth INR 16.29 crore are pending. Delays or price escalations could derail project timelines and affect financial performance.
• Geographic & Market Concentration Risk – Over 45% revenue comes from Gujarat; all manufacturing is based in Rajkot. This exposes the company to regional risks and challenges in expanding against established local players.
• Conflict of Interest with Promoter Entity – Deepak Trade Corporation, owned by the promoter and engaged in a similar line of business, operates without a non-compete clause, creating potential for conflict in strategy and client focus.

Conclusion

Ganga Bath Fittings stands at a compelling intersection of strong legacy, product diversification, and operational scalability. Its transition from a family-run firm to a public limited entity reflects a growth mindset supported by structured planning and execution. The company’s consistent revenue growth, improving capacity utilization, and high return on net worth (26.57%) suggest robust internal efficiency and business acumen.

With IPO proceeds targeted toward expansion, debt reduction, and working capital, the use of funds appears prudent and growth-focused. Despite inherent risks associated with SME listings, the valuation remains reasonable relative to peers, and the long-term outlook is promising.

For investors with a medium- to long-term horizon and an appetite for emerging companies in India’s infrastructure and housing sectors, this IPO presents a strong investment opportunity. Ganga Bath Fittings isn’t just listing shares—it’s preparing to scale its impact across the Indian market.