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Madhusudan Masala Limited IPO - Review, Valuation & GMP Today

  


Madhusudan Masala Limited - Complete Overview

Madhusudan Masala Limited specializes in the manufacturing and processing of over 32 varieties of spices sold under the well-known brand names "DOUBLE HATHI" and "MAHARAJA." 

Additionally, the company offers a range of other grocery products, including whole spices, tea, and items such as Rajgira flour, Papad, Soya Products, Asafoetida (Hing), Achar masala (Ready to make pickle powder), Sanchar (Black salt powder), Sindhalu (Rock salt powder), Katlu powder (Food supplement), Kasuri Methi (Dry fenugreek), all branded as "DOUBLE HATHI."

Madhusudan Masala's spice collection encompasses two main categories:
(i) Ground spices, which feature a variety of Chilli Powder, Turmeric Powder, Coriander Powder, and Coriander Cumin Powder.
(ii) Blend spices, including 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), and more.

The company has gained prominence as a manufacturer of 13 different types of chilli powder, offering a total of 78 SKUs, effectively catering to a wide range of customer preferences within the industry. The company's manufacturing facility is situated in Jamnagar, Gujarat.

Madhusudan Masala's manufacturing facilities hold accreditations such as ISO 9001:2015 for quality management, ISO 22000:2018 for Food Safety Management System, and HACCP for Hazard Analysis Critical Control Points. Additionally, the company holds an FSSAI license under the Food Safety and Standards Act of 2006.

In the fiscal year 2023, the company achieved a revenue of 12,721.60 Lacs.

 

 

What does the company do?

Madhusudan Masala Limited is engaged in the business of manufacturing and processing more than 32 types of Spices under the brand names “DOUBLE HATHI” and “MAHARAJA”.

 

Company Products 

Madhusudan Masala's spice collection encompasses two main categories:

(i) Ground spices which comprise various varieties of Chilli Powder, Turmeric Powder, Coriander Powder and Coriander Cumin Powder.

(ii) Blend spices which comprise of 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.

 

IPO Overview

The Madhusudan Masala IPO date is scheduled from September 18, 2023, to September 21, 2023. The company aims to secure Rs. 23.80 Crores in funding through this upcoming SME IPO.

The Madhusudan Masala IPO price is established within the range of Rs. 66 to Rs. 70 per share, with a face value of Rs. 10 per share. This offering is structured as a book-built issue.

A single lot of shares comprises 2000 shares, and retail investors have the opportunity to bid for a maximum of 1 lot.

 

Madhusudan Masala Limited IPO timetable (Tentative)

Events

Date

IPO Opening Date

18 September 2023

IPO Closing Date

21 September 2023

IPO Allotment Date 

26 September 2023

Refund initiation 

27 September 2023

IPO Listing Date

3 October 2023

 

Madhusudan Masala Limited IPO Details 

IPO Opening & Closing Date 

18 September to 21 September 2023

Face value 

Rs.10 per share

Issue Price

Rs. 66 to Rs. 70 per share

Lot Size

2000 Shares

Price of 1 lot

Rs.140,000

Issue Size

3,400,000 Shares (aggregating up to Rs. 23.80 Cr)

Offer for sale 

NA

Fresh issue 

3,400,000 Shares (aggregating up to Rs. 23.80 Cr)

Listing at

NSE SME

Issue Type 

Book Built Issue IPO

Registrar 

Kfin Technologies Ltd. 

 

Madhusudan Masala Limited IPO Lot Details

Minimum Lot Investment (Retail)

1 Lot

Maximum Lot Investment (Retail)

1 Lot

Minimum Lot Investment (HNI)

2 Lot

 

Madhusudan Masala Limited IPO Reservation

Institutional Share Portion

50%

Non-Institutional share Portion

15%

Retail Share Portion

35%

 

Company Financial

Amount in Lakhs

Period

FY - 21

FY - 22

FY - 23

Total Assets

2599.90

3514.29

5736.52

Total Revenue

6875.18

6651.81

12750.57

PAT

44.98

81.29

575.89

Net Worth

1094.09

31.07

1099.10

Reserve & Surplus

-

30.07

599.10

Total Borrowings

966.40

2819.53

4217.20

 

Objective of the Issue 

The raised funds will be utilized to achieve the following objectives:

  • Meeting working capital needs.
  • Addressing general corporate purposes.

 

Promoters and Management of Madhusudan Masala Limited

The Promoters of the Company included Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha, Hiren Vijaykumar Kotecha, Foram Rishit Kotecha and Mayuri Hiren Kotecha.

Pre-issue Promoter Shareholding

100.00%

Post-issue Promoter Shareholding

73.64%

 

Peer Comparison

Here are the company's listed peers:

Company Name

EPS

PE

Total Income (Rs. In Lakhs)

Madhusudan Masala Limited

6.94

-

12,750.57

NHC Food Limited

1.48

34.25

16,411.34

 

IPO's Valuations

To assess the IPO valuation, we can utilize the information provided in the Madhusudan Masala IPO DRHP. The Madhusudan Masala IPO price range is Rs. 66 to Rs. 70 per share, and the company's EPS is Rs. 6.94. Considering the upper price band of the IPO, the company's P/E ratio is approximately 10.

 

Dividend Policy 

The company has not distributed dividends in the past, and there is no assurance of any dividend declarations in the future.

 

IPO's Strengths 

  • The company boasts a well-established brand name with a heritage and legacy spanning more than four decades.
  • It is known for its unwavering commitment to quality.
  • The company enjoys robust and enduring customer relationships.
  • With a diverse product portfolio, the company offers an extensive range of products.
  • The company maintains its own in-house manufacturing facility.

 

IPO Weaknesses

  • The company operates in a competitive market.
  • It heavily relies on the sale of chilli and chilli powder.
  • The markets where the company competes are marked by ever-changing consumer preferences.
  • A significant portion of the company's revenue is derived from specific regions within Gujarat.
  • The company has faced negative cash flows from operations recently.
  • Competitive pricing pressures from rivals could impact the company's ability to maintain or raise product prices, potentially leading to declines in revenue, gross margins, and profitability.
  • The Company, its Promoters, and its Directors are currently involved in certain legal proceedings and potential litigations.
  • As part of regular business operations, the company need to secure approvals from relevant statutory and regulatory authorities.

 

 

IPO GMP Today

Latest GMP of Madhusudan Masala SME IPO is Rs. 60.

 

Conclusion

Madhusudan Masala Limited is a recognized brand with a robust customer base, offering a diverse product range and is known for its consistent quality. Nevertheless, the company operates in a fiercely competitive sector and has faced negative cash flows in the past. To achieve a favourable outcome, investors are encouraged to apply for this IPO after conducting a thorough analysis.
 

 

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 Madhusudan Masala Limited IPO is the initial public offering of shares in Madhusudan Masala Limited, one of India's prominent spice manufacturers. It's an opportunity for investors to buy shares in the company as it goes public.

+

To invest in the Madhusudan Masala Limited IPO, you need to follow these steps:

  • Open a Demat and trading account with a registered stockbroker.
  • Check if the IPO is open for subscription.
  • Apply for shares through your broker's online platform or ASBA facility.
+

The IPO price of Madhusudan Masala Limited is determined through a book-building process and will be disclosed in the company's prospectus once the IPO is announced.

+

The minimum investment amount for the Madhusudan Masala Limited IPO will depend on the IPO price and the lot size. This information will be available in the IPO prospectus.

+

The listing date for Madhusudan Masala Limited IPO will be announced once the IPO subscription period is completed and the shares are allotted.



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