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:
- GPI Unit – Specializes in PTMT Taps, ABS Showers, ABS Faucets, and Accessories.
- GI Unit – Manufactures CP Taps, Bathroom Vanities, and Sanitary Ware.
- 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
| Metric | FY22 | FY23 | FY24 | FY25 (Up to Dec 31) |
| Installed Capacity (MT Unit) | 804 | 804 | 804 | 603 |
| Utilized Capacity (MT) | 329.37 | 453.09 | 501.12 | 442.32 |
| Utilization (%) | 41% | 56% | 62% | 73% (Est. >85%) |
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:
| FY 2022 | FY 2023 | FY 2024 | 1 Apr – 21 May 2024 | 22 May – 31 Dec 2024 | |
| Revenue | 10.67 | 12.18 | 13.58 | 2.37 | 22.46 |
| Expenses | 10.71 | 12.01 | 12.81 | 2.02 | 17.86 |
| Net income | 0.01 | 0.09 | 0.59 | 0.24 | 3.61 |
| RONW (%) | 0.60 | 6.85 | 15.07 | 40.77 | 26.57 |
| ROCE (%) | 12.73 | 52.49 | 29.80 | 63.19 | 36.32 |
| Own Brand (%) | 75.75 | 76.63 | 73.17 | – | – |
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
- Diverse Product Portfolio: Over 430 SKUs catering to a wide spectrum of consumers.
- Experienced Management: Over 30 years in bath fittings with industry relationships and domain expertise.
- Wide Distribution Network: 2,500+ dealers and pan-India presence in states like Gujarat, Tamil Nadu, Maharashtra, and West Bengal.
- Strong Quality Focus: ISO 9001:2015 certified for design and manufacturing — a key credibility point.
- Custom Manufacturing Capability: OEM relationships help ensure steady B2B revenue flow.
- Brand Equity: Products sold under established names — Ganga, Stepian, Tora — build trust.
- 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.