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Jay Kailash Namkeen Ltd. IPO: Review, Valuation & GMP

  


Jay Kailash Namkeen Limited IPO  - Complete Overview

Established in June 2021, Jay Kailash Namkeen Limited specializes in the production of packaged Indian snacks. 

Their diverse range of offerings 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, and more. 

With a total of 186 SKUs across 56 different products, the company caters to various consumer preferences and budgets, offering pack sizes ranging from ₹5 to 20 Kgs.

Jay Kailash Namkeen operates primarily in the states of Assam, Bihar, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, and Uttar Pradesh. Their production facility, situated in Rajkot, Gujarat, has a production capacity of 10 tonnes per working day, enabling them to meet the demands of their diverse customer base efficiently.

Jay Kailash Namkeen Limited IPO Overview

Jay Kailash Namkeen Limited IPO date is slated to be open for subscription from March 28, 2024, to April 3, 2024. This BSE SME IPO follows a Book Built Issue IPO.

Jay Kailash Namkeen LimitedIPO price is fixed in the range of Rs.70 to Rs.73 per share. 

The total issue size of this IPO amounts to Rs.11.93 Cr. The company has allocated shares 50% to retail investors, 30% to institutional and 20% to non-instituional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Jay Kailash Namkeen Limited has seen growth in total assets and net worth but decreased in total revenue. The profit after tax and total borrowing have increased.

(Amount in Lakhs)

Period

30 Nov 2023

31 Mar 2023

31 Mar 2022

Total Assets 

1,118.30

671.19

613.46

Total Revenue

646.19

987.74

1,043.12

PAT

40.45

88.79

54.57

Net worth

582.45

359.21

83.20

Reserve & Surplus 

246.12

65.88

49.42

Total Borrowings

354.67

238.44

65.76

 

Revenue on the product mix of the company

(Amount in lakhs)

Category of Products

November 30, 2023

31 Mar 2023

31 Mar 2022

All types of Chana Jor

631.11

933.84

1,016.27

All types of Mung Jor

1.8

11.88

1.69

Other Products

6.88

34.27

25.16

 

State-wise Revenue Break up

(Amount in Lakhs)

 

March 31, 2022

 

March 31, 2023 

 

November 30, 2023

 

State

B2B Sales

B2C Sales

B2B  Sales

B2C  Sales

B2B  Sales

B2C Sales

Andhra Pradesh

-

-

-

-

-

-

Assam

1.31

-

5.41

-

3.82

-

Bihar

14.32

-

1.56

-

0.64

-

Chhattisgarh

-

-

-

-

-

-

Delhi

0.1

-

-

-

-

-

Gujarat

314.2 2

-

101.6 1

229.97

133.33

131.52

Karnataka

-

-

-

-

-

-

Madhya Pradesh

82.46

-

140.58

-

66.47

-

Maharashtra

51.24

-

21.48

-

8016

-

Odisha

-

5.27

-

2.29

-

Rajasthan

561.9

-

468.31

-

290.51

-

Telangana

7.54

-

5.96

-

3.04

-

Uttar Pradesh

6.16

-

-

-

-

-

West Bengal

-

-

-

-

-

-

Total

1,043 .13

-

750.0 2

229.97

508.26

131.52

 

 


Customer-wise revenue break-up

(Amount in Lakhs)

Particular

November 30, 2023 

March 31, 2023

March 31, 2022

Top 1 customers 

231.77

449.79 

501.78

Top 5 customers 

411.87

684.07 

817.91

Top 10 customers 

426.36

715.96 

915.35

 

The Objective of the Issue

The objectives of the issue are as follows:

1. To meet the working capital requirement

2. General corporate purpose

Peers of Jay Kailash Namkeen Limited IPO

Name of the Company

Face Value (Rs)

EPS (Rs)

P/E Ratio

Jay Kailash Namkeen Limited

10

3.03

-

Annapurna Swadisht Limited

10

4.35

44.24

Prataap Snacks Ltd

5

8.51

86.55

 

Evaluation

The IPO is priced within the range of Rs.70 to Rs.73 per share.

Evaluation of P/E Ratio

  • Considering the FY23 EPS of Rs 3.03 from the last year, the resulting P/E ratio is 24.09x.

  • Taking into account the weighted EPS of Rs 2,66 for the last three years, the P/E ratio amounts to 27.44x.

Comparative Analysis with Listed Peers

  • The industry's average P/E is 65.40x.

As a result, the IPO price range, with a P/E ratio ranging from 24.09x to 27.44x, seems fully priced to the industry average of 65.40x.

 

 

 

IPO's Strengths 

  • Varied range of products in the portfolio.

  • Established connections with current clients.

  • Packaging of products.

  • Assurance of quality standards.

IPO weaknesses 

  • The company's limited operating history exposes it to risks typical of early-stage ventures.

  • Promotion of the company is spearheaded by a first-generation entrepreneur.

  • Compliance with strict food safety and health regulations may lead to higher liabilities and capital spending.

  • The company must regularly secure and renew various registrations, licenses, approvals, NOCs, and permits as part of its normal operations.

  • Competition from organized and unorganised entities poses a potential threat to the company's business.

IPO GMP Today

The latest GMP of Jay Kailash Namkeen Limited is Rs.12.

Jay Kailash Namkeen Limited IPO timetable (Tentative)

Jay Kailash Namkeen Limited IPO is scheduled from March 28 to April 3, 2024, with allotment on April 4, refund initiation on April 5, and listing on April 8, 2024.

Events 

Date

IPO Opening Date

March 28, 2024

IPO Closing Date

April 3, 2024

IPO Allotment Date 

April 4, 2024

Refund initiation 

April 5, 2024

IPO Listing Date

April 8, 2024


Jay Kailash Namkeen Limited IPO Details 

Jay Kailash Namkeen Limited IPO, with a face value of Rs.10 per share, opens on March 28 and closes on April 3, 2024, offering 1,633,600  shares at Rs.70 to Rs. 73 per share, with a lot size of 1600 shares, aiming to raise Rs.11.93 Cr, and will be listed on BSE SME.

IPO opening & closing date 

March 28, 2024 to April 3, 2024

Face value 

₹10 per share

Issue Price

₹70 to ₹73 per share

Lot Size

1600 Shares

Price of 1 lot

₹116,800

Issue Size

1,633,600 shares (aggregating up to ₹11.93 Cr)

Fresh issue 

1,633,600 shares (aggregating up to ₹11.93 Cr)

Listing at

BSE SME

Issue Type 

Book Built Issue IPO

Registrar 

Skyline Financial Services Private Ltd 


Jay Kailash Namkeen Limited IPO Lot Details 

For Jay Kailash Namkeen Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.116,800 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.233,600.

Minimum Lot Investment (Retail) 

1 lot

Maximum Lot Investment (Retail) 

1 lot

Minimum Lot Investment (HNI) 

2 lot

 

 



Jay Kailash Namkeen Limited IPO Reservation 

Institutional share Portion

30%

Non-institutional share Portion

20%

Retail share Portion

50%

Promoters and Management of Jay Kailash Namkeen Limited

  • Mr. Neel Narendrabhai Pujara 

  • Ms. Tulsi Neel Pujara.

Pre-issue Promoter shareholding

71.82%

Post-issue Promoter shareholding

48.33%

 

Jay Kailash Namkeen Limited IPO Lead Managers

  • Expert Global Consultants Private Limited 

Dividend Policy

The company has not distributed any dividends in recent fiscal years, and future dividend payments hinge on the financial performance of the company.

 

 

Conclusion

Jay Kailash Namkeen Limited is an Indian snack brand operating within a highly competitive and fragmented sector. With a limited operating history and financial performance that may not be entirely satisfactory, investors are advised to carefully analyze all factors before considering participation in the upcoming IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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Frequently Asked Questions

+

The IPO is scheduled to open for subscription on March 28, 2024.

 

+

The issue price for Jay Kailash Namkeen Limited IPO is set in the range of  ₹70 to ₹73 per share.

 

+

The total issue size of the IPO is Rs.11.93 Cr, with 35% reserved for retail investors.

 

+

The IPO is set to close on April 3, 2024.

 

+

The net proceeds from the IPO will be utilized to fulfil working capital needs and cover general corporate expenses.

 



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