Madhusudan Masala IPO will open for subscription from 18 September 2023. The company aims for an issue size of 23.80 Cr through this IPO.
Company Overview
| Full name | Madhusudan Masala Limited |
| Sector | Trading |
| Industry | Trading |
| Company Website | https://www.madhusudanmasala.com/ |
About Company
The business was established in the year 1982 with the objective to manufacture spices and other food products. The company has been selling its products under the brand name of “DOUBLE HATHI” since 1977 and under the brand name of “MAHARAJA” since 2003. Its range of spices includes (i) Ground spices which comprise various varieties of Chilli Powder, Turmeric Powder, Coriander Powder, and Coriander Cumin Powder and (ii) Blend spices which comprise Garam Masala, Tea Masala, Chhole Masala, Sambhar Masala, Pav Bhaji Masala, Pani Puri Masala, Sabji Masala, Kitchen King Masala, Chicken Masala, Meat Masala, Chatpata Chat Masala, Butter Milk Masala, Chewda Masala, Dry Ginger Powder (Sunth), Black Pepper Powder (Mari), Dry Mango Powder (Aamchur) etc.
The company also deals in whole spices in retail and bulk quantities. During the Fiscals 2023, 2022, and 2021, its revenue from the sale of spices contributed to 75.07%, 69.94%, and 83.08% of its overall sales. The Double Hathi portfolio of ground spices comprises premium quality spices whereas value for money segment of ground spices is offered under the Maharaja portfolio. The company also sells tea and other grocery products like papad, soya products, Asafoetida (Hing), black salt, rock salt, etc. procured through third-party manufacturers and packaged under the brand name “DOUBLE HATHI”.
Madhusudan Masala operates from its manufacturing facility located at Jamnagar, Gujarat. The manufacturing unit is situated at Industrial Area Hapa, Near Jamnagar, and is strategically located near the local APMC market thus facilitating easy and quick access to raw materials which reduces the transportation costs as well. Its manufacturing facility is equipped with plant & machinery to facilitate an efficient production process of cleaning, drying, grading, grinding, and packaging.
The Objective of the Issue
- Funding to meet working capital requirements,
- General Corporate Purpose.
IPO Timetable
| IPO Opening date | 18 September 2023 |
| IPO Closing | 21 September 2023 |
| Basis of Allotment | 26 September 2023 |
| Initiation Refund | 27 September 2023 |
| Credit to Demat Account | 28 September 2023 |
| Listing Date | 29 September 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹23.80 Cr – 3,400,000 shares |
| Fresh Issue | ₹23.80 Cr – 3,400,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹66 to ₹70 per share |
| Lot size | 2000 Shares |
| Market Maker portion | 172,000 shares |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹140,000 |
| Retail (Max) | 1 | 2000 | ₹140,000 |
| HNI (Min) | 2 | 4,000 | ₹280,000 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 68.68 | 65.41 | 127.22 |
| Expenses | 68.13 | 65.55 | 119.77 |
| Net income | 0.45 | 0.81 | 5.76 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 8.53 | 15.41 | 6.94 |
| PE ratio | – | – | 9.51 – 10.09 |
| RONW (%) | 4.11 | 261.67 | 52.40 |
| NAV | 207.42 | 5.89 | 13.24 |
| ROCE (%) | 11.08 | 9.08 | 20.08 |
| EBITDA (%) | 4.03 | 3.28 | 8.66 |
| Debt/Equity | 0.88 | 90.76 | 3.84 |
Company Promoters
- Mr. Dayalji Vanravan Kotecha
- Mr. Vijaykumar Vanravan Kotecha
- Mr. Rishit Dayalaji Kotecha
- Mr. Hiren Vijaykumar Kotecha
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 73.64% |
Lead Manager(s)
HEM SECURITIES LIMITED
904, A Wing, Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Lower Parel, Mumbai-400013
Phone: +91 022- 49060000
Email: ib@hemsecurities.com
Website: www.hemsecurities.com
IPO Registrar
KFIN TECHNOLOGIES LIMITED
Selenium, Tower-B Plot 31 and 32, Financial District Nanakramguda,
Serilingampally Hyderabad, Rangareddi 500 032 Telangana
Phone: +91 40 6716 2222
Email: zaggle.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
MADHUSUDAN MASALA LIMITED
F. P. No. 19, Plot No. 1 – B
Hapa Road, Jamnagar, Gujarat-361001
Phone: +91 0288 – 2572002
E-mail: info@madhusudanmasala.com
Website: www.madhusudanmasala.com
Allotment Status
Madhusudan Masala IPO allotment status will be available on KFin Tech website. Click on this link to get allotment status.
Final thoughts
Madhusudan Masala IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
