Gajanand International
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Sep 2024 – 11 Sep 2024
- Listing date
- 16 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹36 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹20.65 Cr
- Market cap at offer price
- ₹67.81 Cr
- Promoter holding
- 90.50% → 62.34% pre-issue → post-issue
- ISIN
- INE0QTE01018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Fast Track Finsec Pvt.Ltd.
- Registered office
- Survey No.1257/1266, Jasdan-Atkot Roadnr.Bypass Circle, Jasdan, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,88,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹36
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 30,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.71 | 1.19 |
| P/E (×) | 21.05 | 30.25 |
| Price to book (×) | 2.10 | — |
| Market cap | — | ₹67.81 Cr |
Key performance indicators
- Return on net worth
- 19.30%
- ROCE
- 29.72%
- Debt / equity
- 0.68
- PAT margin
- 2.06%
- NAV per share
- ₹13.52
- Price to book
- 2.10
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gajanand International
Gajanand International Limited, incorporated on June 15, 2009, is a cotton processing and agro commodities trading company based in Jasdan, Rajkot, Gujarat. The company takes seed cotton (kapas) as raw material and processes it according to Indian Cotton Fiber Quality Standards by minimizing trash and moisture, improving cotton grade and packing standards, and providing logistics support for timely delivery. The company also trades in agro commodities. The company operates a ginning unit with 24 ginning machines, each capable of processing 5 metric tons of seed cotton per day. On average, the facility operates for 8-10 months per year during the cotton season. The company was originally incorporated as Gajanand Cottex Private Limited, converted to Gajanand International Private Limited, and finally became Gajanand International Limited as a public company in 2023.
Company Analysis
from RHPGajanand International Limited processes seed cotton (kapas) into cotton fiber and cotton seed, operating in the cotton and textile industry while also trading in agro commodities.
Gajanand International Limited, incorporated on June 15, 2009, is a cotton processing and agro commodities trading company based in Jasdan, Rajkot, Gujarat. The company takes seed cotton (kapas) as raw material and processes it according to Indian Cotton Fiber Quality Standards by minimizing trash and moisture, improving cotton grade and packing standards, and providing logistics support for timely delivery. The company also trades in agro commodities. The company operates a ginning unit with 24 ginning machines, each capable of processing 5 metric tons of seed cotton per day. On average, the facility operates for 8-10 months per year during the cotton season. The company was originally incorporated as Gajanand Cottex Private Limited, converted to Gajanand International Private Limited, and finally became Gajanand International Limited as a public company in 2023.
Objects of the Issue
- Working Capital Requirement ₹1,498.72 lakhs p.20
- General Corporate Purpose ₹401.24 lakhs p.20
- Working Capital Requirement ₹1,498.72 lakh p.78
- General Corporate Purposes ₹401.24 lakh p.78
- Issue Expenses ₹165.00 lakh p.78
Issue Structure
- Total Issue
- ₹2,064.96 lakhs
- Fresh Issue
- 57,36,000 Equity Shares aggregating to ₹2,064.96 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹36/- per Equity Share (Fixed Price)
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue by processing seed cotton (kapas) into finished products—primarily cotton bales and cotton seeds. Revenue is generated through the sale of processed cotton fiber and cotton seed, with the company taking raw material from suppliers and adding value through ginning, quality improvement, grading, and logistics services. The company also engages in trading of agro commodities.
Business Segments
SWOT Analysis
- • Established market presence in cotton ginning with operational capacity(p.32)
- • Diversified product portfolio in cotton and agro-commodities(p.20)
- • Access to natural resources providing competitive advantage(p.20)
- • Strong revenue growth trajectory(p.20)
- • Installed capacity of 37,500 MT/annum with significant production scale(p.119)
- • Strategic location advantage near cotton-growing regions and raw material proximity(p.119)
- • ISO 9001:2015 certification for quality manufacturing(p.108)
- • Experienced promoter team with 20+ years in cotton and commodity industry(p.108)
- • Strong revenue growth of 32.66% CAGR (FY 2022-2024)(p.87)
- • Increasing business scalability with diversification into agro commodities trading(p.120)
- • Established incorporation and operational history(p.234)
- • Positive operating profit and net-worth growth trajectory(p.234)
- • ISO 9001:2015 Quality Management System certification(p.230)
- • Valid export credentials and MSME registration(p.230)
- • Heavy dependence on a few major customers(p.28)
- • Lack of long-term customer contracts(p.28)
- • No long-term supply agreements for raw materials(p.27)
- • Negative cash flow from operating activities(p.27)
- • Non-compliance with MOA regarding agro-commodities trading(p.27)
- • Single geographic location for manufacturing facility(p.31)
- • Significant outstanding debt burden(p.32)
- • First generation entrepreneurs with limited management experience(p.27)
- • Low capacity utilization(p.30)
- • Missing corporate records from 2009-2013(p.36)
- • Trademark application objected(p.32)
- • Regulatory penalties imposed for non-compliance(p.37)
- • Seasonal availability of cotton and raw material consumption affects operations(p.120)
- • Dependency on suppliers for product availability and supply chain vulnerability(p.120)
- • Low capacity utilization at 24.01% in FY 2023-24(p.127)
- • No backup power generation facility (no generator installed)(p.122)
- • Trademark registration objections(p.231)
- • Approvals held in old company name requiring transfer(p.231)
- • Unlisted company status with no prior public issuance history(p.241)
- • No previous rights and public issues experience(p.240)
- • India's position as leading cotton producer globally(p.20)
- • Strong growth in manufacturing sector(p.20)
- • Expansion of foodgrain and agro-commodity production(p.20)
- • High manufacturing export growth(p.20)
- • Use of IPO proceeds for working capital and business expansion(p.20)
- • Potential growth from increasing global population and rising disposable incomes(p.120)
- • Increasing domestic and international demand for cotton products(p.121)
- • Government support through textile industry initiatives and incentives(p.121)
- • Strategic expansion plan to establish spinning and weaving units for vertical integration(p.128)
- • India's strong position as world's largest cotton producer with 23% global share(p.104)
- • Mandatory three-year market making support post-listing(p.233)
- • Migration pathway to NSE Main Board after Emerge listing(p.247)
- • Capital raising through equity shares for expansion(p.231)
- • Access to public capital markets for future growth(p.247)
- • Seasonal volatility in cotton availability and business(p.26)
- • Volatile raw material prices(p.29)
- • Intense competition in textile and cotton industry(p.29)
- • Dependence on power and infrastructure supply(p.29)
- • Risk of operational disruptions from natural disasters(p.30)
- • Transportation and logistics risks(p.29)
- • Changes in regulatory framework and government policies(p.34)
- • Macroeconomic risks and interest rate fluctuations(p.38)
- • Global economic instability and trade disruptions(p.37)
- • Pandemic and disease outbreak risks(p.38)
- • Natural disasters and climate events(p.37)
- • Tax and regulatory changes(p.39)
- • Political instability in India affecting business(p.40)
- • Increasing market competition intensifying pricing pressure and margin erosion(p.121)
- • Fluctuations in market trends and consumer demand affecting revenue stability(p.121)
- • Pest infestations and unpredictable weather patterns affecting cotton supply(p.123)
- • Global economic fluctuations and commodity price volatility affecting profitability(p.123)
- • Farmer holding of raw cotton due to government MSP policies disrupting supply(p.127)
- • Dependence on 100% underwriting for IPO success(p.246)
- • Minimum 50 allottees requirement or entire offer fails(p.245)
- • Risk of withdrawal and refund if listing approval not obtained(p.239)
- • Three-year mandatory lock-in on Emerge platform before Main Board migration(p.247)
- • No SEBI approval or endorsement of prospectus(p.235)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ashok Bhagvanbhai Monsara | Promoter | 30,96,256 shares (23.64%) | — |
| Mrs. Truptiben Ashokbhai Monsara | Promoter | 4,89,600 shares (3.74%) | — |
| Mr. Ashish Dhirajlal Monsara | Promoter | 23,93,568 shares (18.27%) | — |
| Ashok Bhagvanbhai Monsara | Promoter | 23.64% | 16.44% |
| Truptiben Ashokbhai Monsara | Promoter | 3.74% | 2.60% |
| Ashish Dhirajlal Monsara | Promoter | 18.27% | 12.71% |
| Minaxiben Dhirajlal Monsara | Promoter Group | 2.24% | 1.55% |
| Gaurav Dhirajlal Monsara | Promoter Group | 3.36% | 2.34% |
| Kishorbhai Bhagwanbhai Monsara | Promoter Group | 13.73% | 9.55% |
| Dhirajlal Bhagvanjibhai Monsara | Promoter Group | 3.86% | 2.68% |
| Mansi Parth Parsana | Promoter Group | 1.22% | 0.85% |
| Prathna Ashokbhai Monsara | Promoter Group | 1.51% | 1.05% |
| Smit Kishorbhai Monsara | Promoter Group | 11.03% | 7.67% |
| Fenil Ashokbhai Monsara | Promoter Group | 3.42% | 2.38% |
| Bhavnaben Kishorbhai Monsara | Promoter Group | 4.48% | 3.12% |
| Mr. Ashok Bhagvanbhai Monsara | Promoter | 23.64% | — |
| Mrs. Truptiben Ashokbhai Monsara | Promoter | 3.74% | — |
| Mr. Ashish Dhirajlal Monsara | Promoter | 18.27% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.