Unlocking the Flavorful World of Madhusudan Masala Ltd: An SME IPO Overview

Discover the Spices, the Figures, and the Madhusudan Masala Ltd IPO Details

Madhusudan Masala Ltd is a well-established enterprise dedicated to the production, processing, and promotion of over 32 distinct spice varieties. Under the popular brand names “DOUBLE HATHI” and “MAHARAJA,” these aromatic treasures grace kitchen shelves across the nation. Let’s delve deeper into the world of Madhusudan Masala Ltd.

Exploring the Spice Kingdom

Ground Spices:

• From fiery chili powder to earthy turmeric powder, and fragrant cumin powder, Madhusudan Masala Ltd offers a range of ground spices.

Blended Spices:

• Delight in item-specific blends like garam masala, tea masala, chhole masala, sambhar masala, and more.
• Pounded masalas include dry ginger powder, black pepper powder, and Amchur.

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The SME IPO Highlights

Opening and Closing Dates:

• The SME IPO subscription window opens on September 18th, 2023, and closes on September 21st, 2023.

Issue Details:

• Each share has a face value of ₹10, and the issue price band for the fresh IPO is ₹66 to ₹70 per share.
• The IPO consists only of a fresh issue component, making it non-EPS and non-equity dilutive.
• Madhusudan Masala Ltd plans to issue 34,00,000 shares, raising ₹23.80 crore at the upper end of the price band.

Promoters and Use of Funds:

• The company’s promoters, Dayalji Kotecha, Vijaykumar Kotecha, Rishit Kotecha, and Hiren Kotecha, currently hold 100% equity, which will reduce to 73.64% after the IPO.
• Funds from the IPO will address working capital needs, corporate expenses, and issue-related costs.

Allocation and Lot Size:

• QIBs are allocated up to 50% of the issue, retail investors up to 35%, and HNI/NII investors up to 15%.
• The minimum lot size is 2,000 shares, allowing retail investors to invest a minimum of ₹140,000.

Key Dates for Your Calendar

The SME IPO Timeline:

• IPO Opening Date: September 18th, 2023
• IPO Closing Date: September 21st, 2023
• Basis of Allotment Finalization: September 26th, 2023
• Refunds to Non-allottees: September 27th, 2023
• Shares Credited to Demat Accounts: September 28th, 2023
• Listing on NSE-SME IPO Segment: September 29th, 2023

Financial Snapshot of Madhusudan Masala Ltd

Financial Overview:

• Total Revenues (FY23): ₹127.51 cr
• Revenue Growth (FY22-FY23): 91.69%
• Profit after Tax (PAT) (FY23): ₹5.76 cr
• Net Worth (FY23): ₹10.99 cr

Challenges and Considerations:

• While the company’s ROE is attractive, fluctuating net worth and inconsistent revenue growth raise concerns.
• In the commoditized spice segment, margin pressures can be high.
• Valuation terms indicate a reasonable P/E of around 10X, but sustaining such valuations requires consistent profit growth.

As you contemplate investing in the Madhusudan Masala Ltd SME IPO, consider consulting your financial advisor to assess its fit with your risk appetite. This flavorful journey through the world of spices and finances offers a taste of the opportunities and challenges awaiting prospective investors.