Jay Kailash Namkeen, engaged in the business of manufacturing and marketing of packaged Indian snacks, is coming out with its maiden book building route IPO of 16.34 lakh equity shares of Rs 10 each. Bidding for the IPO opened for subscription on March 28, 2024 and will close on April 3, 2024. The price band is set at Rs 70 to Rs 73 per share and the company will be able to mobilize Rs. 11.93 crore at the upper cap. From the net proceeds of the IPO, it will utilize around Rs seven crore for working capital, and the rest for general corporate purposes.
- Issue Closes: April 3, 2024
- Face Value: Rs 10 each
- Price Band: Rs 70 to Rs 73 per share
- Lot Size: 1600 Shares for Retail
- Listing On: BSE SME
- Issue Type: Book Built Route
- Listing Date: Monday, April 8, 2024
The minimum lot size for an application is 1600 Shares. Thus the minimum amount of investment required by retail investors is Rs 1,16,800 whereas the minimum lot size investment for HNI is two lots (3,200 shares) amounting to Rs 2,33,600. The allotment is expected to be finalized on Thursday, April 4, 2024 and the shares will be listed on BSE SME with tentative listing date fixed as Monday, April 8, 2024.
The Company
Established in 2021, Jay Kailash Namkeen Limited manufactures packaged Indian snacks. Its product portfolio includes Chana Jor Namkeen, Masala Chana Jor, Pudina Chana, Masala Mung Jor, Plain Mung Jor, Soya Sticks, Haldi Chanas, Chana dal, Sev Murmura & Garlic Sev Murmura, Bhavnagari Gathiya, Chana Dal, Sing Bhujia, Popcorn, Roasted Peanuts, etc. The company’s production facility is located in Rajkot, Gujarat, and has a production capacity of 10 tons per working day. The company has 186 SKUs of 56 products in sizes of Rs 5, Rs 10, 200 grams, 400 grams, 500 grams, 5 kilograms and 20 kilograms. As of November 30, 2023, it had 14 employees and 35 on demand labourers for production and dispatch with 6 personnel for marketing.
The company has successfully captured a big chunk of the market in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan beside a considerable presence in Assam, Bihar, Chhattisgarh, Odisha, Telangana and Uttar Pradesh. Initially engaged in B2B business wherein it manufactured products in bulk quantities for other well recognised companies/brands in same industry, the company, from April 2022 onwards also started B2C business along with existing B2B business under own brand name “Jay Kailash”. It is also into wholesale trade of Chana Jor namkeen.
Financials
The issue constitutes 32.69 per cent of the post-IPO paid-up capital of the company. Post-IPO, company’s current paid-up equity capital of Rs. 3.36 crore will stand enhanced to Rs. 5 crore. Based on the upper IPO price band, the company is looking for a market cap of Rs. 36.48 crore. For the last three fiscals, the company has posted a total revenue/net profit of Rs. 13.15 crore / Rs. 0.09 crore (FY21), Rs. 3.17 crore/ Rs. 0.05 crore (3M-FY22), Rs. 7.26 crore / Rs. 0.49 crore (9M-FY22). Rs. 9.88 crore / Rs. 0.89 crore (FY23).
Expert Global is the book running lead manager of this IPO which is its 7th mandate in the last two fiscals and except two which listed at par the rest opened with premiums ranging from 11 to 90 per cent on the day of listing. Skyline Financial Services Pvt. Ltd. is the registrar for the issue and the market maker is Rikhav Securities.
