The company Madhusudan Masala Limited is coming up with an IPO of INR 23.80 crores. The offer consists of a fresh issue of equity shares at a price band of INR 66-70 per share.The company intends to utilise the raised funds towards meet its working capital requirements.
Madhusudan Masala Limited IPO – Important Details
| Madhusudan Masala IPO Date | September 18, 2023 to September 21, 2023 |
| Madhusudan Masala IPO Listing Date | September 26, 2023 |
| Madhusudan Masala IPO Price | INR 66-70 per share |
| Madhusudan Masala IPO Lot Size | 2000 Shares |
| Madhusudan Masala IPO Total Issue Size | INR 23.80 crores |
| Madhusudan Masala IPO Basis of Allotment | September 26, 2023 |
| Madhusudan Masala IPO Initiation of Refunds | September 27, 2023 |
| Madhusudan Masala IPO Credit of Shares to Demat | September 29, 2023 |
| Madhusudan Masala IPO Issue Type | Book Built Issue IPO |
| Madhusudan Masala IPO Listing At | NSE SME |
Madhusudan Masala Limited IPO – Company Profile
The company is engaged in the business of manufacturing and processing of more than 32 types of spices under the brand names of “DOUBLE HATHI” and “MAHARAJA”. The company also sell products like: Whole Spices, Tea and Other Grocery Products like: Rajgira flour, Papad, Soya Products, Asafoetida (Hing), Achar masala (Ready to make pickle powder), Sancha (Black salt powder), Sindhalu (Rock salt powder), Katlu powder (Food supplement), Kasuri Methi (Dry fenugreek) etc under the brand name of “DOUBLE HATHI”. Furthermore the company also generate revenue from trading of whole spices and food grains through unbranded sales.
Operating in the industry since last four decades, the promoters, Dayalji Vanravan Kotecha and Vijaykumar Vanravan Kotecha laid the foundation of the business with the objective to manufacture spices and other food products.The next generation, Rishit Dayalji Kotecha and Hiren Vijaykumar Kotecha continued the legacy and developed extensive experience in the industry.
Over the years the company has evolved as manufacturer of 13 types of chilli powder available in 78 SKUs catering to almost every customer segment in the industry.
Madhusudan Masala Limited IPO Objective
- Funding working capital requirement: With the expansion of the business the company will be in the need of additional working capital requirements. Currently, the company funds a majority of the working capital requirements in the ordinary course of business from bank facilities and internal accruals. The company plans to utilise INR crores for meeting the additional working capital requirement.
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc
Madhusudan Masala Ltd IPO Risks And Challenges
The company faces fierce competition, potentially losing market share and profitability. Over a third of revenue relies on chilli and chilli powder sales, making demand fluctuations a concern. Negative cash flows in 2023 and 2022 raise business and financial operation risks.
- The company operates in highly competitive markets, and the scale and resources of some of the competitors may allow them to compete more effectively than the company can, which could result in a loss of the market share and a decrease in the net revenues and profitability.
- The company’s financial performance is significantly dependent on the sale of chilli and chilli powder. For the Fiscals 2023, 34.01% of the revenue was from sales of chilli and chilli powder. Reduction in the demand of these products may adversely impact our revenue from operations and growth prospects.
- The company has been generating negative cash flows from operating activities for the fiscal 2023 and 2022.Cash flows of a company are a key indicator to show the extent of cash generated from the operations of a company to meet capital expenditure, pay dividends, repay loans and make new investments without raising finance from external resources. If the company is not able to generate sufficient cash flows, it may adversely affect the business and financial operations.
Madhusudan Masala IPO Peer Comparison
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Madhusudan Masala Limited | 12,750.57 | 10 | NA | 6.94 | 6.94 | 52.40% | 13.24 |
| NHC Food Limited | 16,411.34 | 10 | 34.25 | 1.48 | 1.48 | 7.38% | 21.50 |
Madhusudan Masala IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 6,868.03 | 6,540.81 | 12,721.60 |
| Equity (₹ in lakhs) | 1,094.09 | 31.07 | 1,099.10 |
| Expenses (₹ in lakhs) | 6,813.43 | 6,554.78 | 11,977.35 |
| Profit and Loss After Tax (₹ in lakhs) | 44.98 | 81.29 | 575.89 |
| RoNW (%) | 52.40% | 261.67% | 4.11% |
| Diluted EPS only (₹) | 8.53 | 15.41 | 6.94 |
| NAV per Equity Share (₹) | 207.42 | 5.89 | 13.24 |
| Total Assets (in lakhs) | 2,599.90 | 3,514.29 | 5,736.52 |
| Total Liabilities (in lakhs) | 1,505.81 | 3,482.93 | 4,637.42 |
Madhusudan Masala IPO- Industry & Market Potential
Production of pulses has also been notably higher than the average of 23.8 million tonnes in the last five years. However, as indicated earlier changing climate has been impacting agriculture adversely. The year 2022 witnessed an early heat wave during the wheat-harvesting season, adversely affecting its production. The year experienced a decline in the sown area for paddy cultivation too in the Kharif season due to delayed monsoons and deficient rainfall.
India is the largest producer, exporter and consumer of spices in the world and exports spices and spice products to more than 180 countries. In India, about 10.88 million tonnes of spices are produced annually. The export of spices from India accounts for around 14 per cent of the total production. India is the global hub for spice processing and the world leader in production and export of major spices like chilli, turmeric, cumin, coriander, fennel and value-added products viz. spice oils and oleoresins, curry powder etc.
Madhusudan Masala Ltd IPO – Type of Offer
Madhusudan Masala Limited plans to launch a INR 23.80 crores IPO, offering new equity shares priced between INR 66 and INR 70 per share, with the funds primarily directed towards meeting its working capital needs.
Madhusudan Masala IPO Offer Size
The company Madhusudan Masala Limited is coming up with an IPO of INR 23.80 crores. The offer consists of a fresh issue of equity shares at a price band of INR 66-70 per share.
Madhusudan Masala IPOAllotment Structure
SEBI regulations allocate IPO shares as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Madhusudan Masala IPO?
To apply for the Madhusudan MasalaIPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Madhusudan MasalaIPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Madhusudan Masala IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Madhusudan MasalaIPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Madhusudan MasalaIPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Madhusudan MasalaIPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Madhusudan MasalaIPO:
· Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Madhusudan MasalaIPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
· NSE SMEE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME Platform You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Madhusudan MasalaLimited IPO Offer Registrar
The registrar for the Madhusudan MasalaIPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Email: [email protected]
Tel No: +91 40 6716 2222
Madhusudan Masala IPO FAQs
1.What is the allotment date of the Madhusudan MasalaLimited IPO?
The allotment date of the Madhusudan MasalaLimited IPO is 26th September 2023.
2. What is the price band of Madhusudan MasalaLimited IPO?
The price band of Madhusudan MasalaLimited IPO is INR 66 to 70 per share.
3.What is the size of the Madhusudan MasalaLimited IPO?
The company Madhusudan Masala Limited is coming up with an IPO of INR 23.80 crores. The offer consists of a fresh issue of equity shares at a price band of INR 66-70 per share.
4.What is the listing date of the Madhusudan MasalaLimited IPO?
The listing date of the Madhusudan MasalaLimited IPO is 26th September 2023.
