Madhusudan Masala IPO: Spicing Up the Stock Market with a Strong Debut

Madhusudan Masala IPO: Spicing Up the Stock Market with a Strong Debut

VoM News Desk | September 18, 2023 | 10:19 AM IST | Breaking News | Follow on Google News

Madhusudan Masala IPO: Spicing Up the Stock Market with a Strong Debut. Image/ (www.madhusudanmasala.com)

Subscription Hits 6.14 Times on Day 1

The Madhusudan Masala IPO, which opened for subscription on Monday, September 18, is garnering significant investor interest. The IPO, which runs until Thursday, September 21, offers equity shares at a price band of ₹66 to ₹70 each, with a lot size of 2,000 equity shares and multiples thereof.

IPO Details and Utilization of Funds

Madhusudan Masala IPO is a fresh issue of 3,400,000 equity shares, with no offer for sale (OFS) component. The IPO aims to raise ₹23.80 crores, which will be utilized to meet working capital requirements and for general corporate purposes. Retail investors can apply for one lot, while non-institutional investors need to apply for at least two lots. The allocation of shares is as follows: 15% for non-institutional investors, 50% for qualified institutional bidders (QIBs), and 35% for retail investors. Hem Securities Limited is the book running lead manager, Kfin Technologies Limited is the registrar, and Hem Finlease serves as the market maker for the IPO.

Company Financials and Promoters

Madhusudan Masala reported a net profit of ₹575.89 lakh with revenue of ₹12,750.57 lakh for the fiscal year ending on March 31, 2023. In FY23, it achieved an EBITDA margin of 8.66% and a profit margin of 4.53%. The company’s promoters include Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha, and Hiren Vijaykumar Kotecha.

Subscription Status and Grey Market Premium

On the first day of the IPO, Madhusudan Masala witnessed strong subscription interest, with a subscription status of 6.14 times. Retail investors displayed robust demand, subscribing 11.20 times, while non-institutional buyers subscribed 2.51 times. QIBs, however, subscribed only 1%.

The grey market premium (GMP) for Madhusudan IPO stood at +59, indicating a premium of ₹59 over the issue price. This suggests that the estimated listing price for Madhusudan Masala shares could be ₹129 apiece, which is 84.29% higher than the IPO price of ₹70.

Expert Opinions and Analysis

While Madhusudan Masala’s strong FY23 performance has raised eyebrows, some experts believe the IPO is fully priced. Dilip Davda, contributing editor at Chittorgarh.com, cautions that the company operates in a highly competitive and fragmented sector, and sustainability concerns arise given its exceptional FY23 earnings. Nonetheless, well-informed and cash-surplus investors may consider this IPO for the medium to long term.

About Madhusudan Masala

Madhusudan Masala is a company engaged in the manufacturing and processing of over 32 types of spices under its brand names “Double Hathi” and “Maharaja.” The company also deals in whole spices, papad, soya products, Asafoetida (Hing), black salt, and rock salt under the brand name “Double Hathi.” Madhusudan Masala’s manufacturing facility is located near Jamnagar, Gujarat, and it has a network of 2,100 wholesalers and 3,700 retailers in Gujarat, Maharashtra, and Rajasthan.

Investors are closely watching the Madhusudan Masala IPO, and its strong debut on the stock market could spice up the investment landscape.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.