Italian Edibles
Fixed Price issueSME₹26.66 Cr issue
-19.12%
Listing gain over issue price
Issue size
₹26.66 Cr
1 lot at cut-off
₹1,36,000
Lot size
2,000shares
Open
02 Feb 2024
Close
07 Feb 2024
Allotment
08 Feb 2024
Listing
12 Feb 2024
Listing performance
Issue price
₹68
Listed at
₹55
Listing-day close
₹57.75
Latest price
₹29.70
Close on 19 Oct 2026
Listing gain
-19.12%
Return since issue
-56.32%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Feb 2024 – 07 Feb 2024
- Listing date
- 12 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹68 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹26.66 Cr
- Market cap at offer price
- ₹100 Cr
- Promoter holding
- 100.00% → 73.47% pre-issue → post-issue
- ISIN
- INE0R7R01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- 309/1/1/8 Block No.03, Mangal Udhyog Nagar, Gram Palda, Madhya Pradesh
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 | 2,00,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹68
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,36,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,72,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,52,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,88,000 |
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
₹68 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.43 | 3.41 |
| P/E (×) | 27.98 | 19.94 |
| Price to book (×) | 1.08 | — |
| Market cap | — | ₹100 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 24.50%
- ROCE
- 19.32%
- Debt / equity
- 1.60
- PAT margin
- 4.17%
- NAV per share
- ₹62.90
- Price to book
- 1.08
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Italian Edibles
Italian Edibles Limited was incorporated as Italian Edibles Private Limited on December 16, 2009, and subsequently changed its name to Italian Edibles Limited in September 2023. The company has been manufacturing delicious confectionery products for the last 14 years under its brand name. The company's product portfolio includes Rabdi [Meethai Sweet], Milk Paste, Chocolate Paste, Lollipops, Candies, Jelly Candies, Multi-Grain Puff Rolls, and Fruit Based Products. These confectionery products are sold pan-India, majorly in rural and semi-urban areas through a network of approximately 450 suppliers and distributors located across 22 states. The company also exports its products to countries such as Nigeria, Yemen, Senegal, and Sudan through a network of 5 merchant exporters. The company operates two manufacturing units located in Gram Palda and Prabhu Toll Kanta, both in Indore, Madhya Pradesh, which are FSAAI, ISO 22000:2018, and FIEO certificated.
Company Analysis
from DRHPItalian Edibles Limited manufactures and sells a wide range of confectionery products including candies, chocolates, lollipops, and traditional Indian confections across India and exports to select African and Middle Eastern countries.
Italian Edibles Limited was incorporated as Italian Edibles Private Limited on December 16, 2009, and subsequently changed its name to Italian Edibles Limited in September 2023. The company has been manufacturing delicious confectionery products for the last 14 years under its brand name. The company's product portfolio includes Rabdi [Meethai Sweet], Milk Paste, Chocolate Paste, Lollipops, Candies, Jelly Candies, Multi-Grain Puff Rolls, and Fruit Based Products. These confectionery products are sold pan-India, majorly in rural and semi-urban areas through a network of approximately 450 suppliers and distributors located across 22 states. The company also exports its products to countries such as Nigeria, Yemen, Senegal, and Sudan through a network of 5 merchant exporters. The company operates two manufacturing units located in Gram Palda and Prabhu Toll Kanta, both in Indore, Madhya Pradesh, which are FSAAI, ISO 22000:2018, and FIEO certificated.
ConfectioneryFood ManufacturingFMCG
Objects of the Issue
- Setting up of the proposed manufacturing unit ₹800.00 Lakhs p.20
- Repayment of certain Borrowings ₹614.43 Lakhs p.20
- To meet incremental working capital requirements ₹600.00 Lakhs p.20
- General Corporate Expenses ₹571.17 Lakhs p.20
- To meet the expenses of the Issue ₹80.00 Lakhs p.20
- Setting up of the proposed manufacturing unit ₹800.00 lakhs p.70
- Repayment of certain Borrowings ₹614.43 lakhs p.72
- To meet incremental working capital requirements ₹600.00 lakhs p.74
- General Corporate Expenses ₹571.17 lakhs p.75
- Repayment of borrowings p.66
- General corporate purposes p.205
Issue Structure
- Total Issue
- ₹2,665.60 Lakhs
- Fresh Issue
- 39,20,000 Equity Shares of Rs.10/- each at Rs.68/- per Equity Share aggregating to Rs. 2,665.60 Lakhs
- Price Band
- ₹68 per Equity Share
- Lot Size
- 2,000 shares and in multiples of 2,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures confectionery products and sells them through a pan-India distribution network of wholesalers and distributors located in rural and semi-urban areas, with products sold in retail and wholesale packs. The company generates revenue from operations through the sale of confectionery products both domestically and through exports. Additionally, the company manufactures a range of products under private labeling arrangements with customers.
Business Segments
Manufacturing and sale of a wide range of confectionery products including Rabdi [Meethai Sweet], Milk Paste, Chocolate Paste, Lollipops, Candies, Jelly Candies, Multi-Grain Puff Rolls, Fruit Based Products sold pan-India through distributors and wholesalers, and exported to select countries
Creamy and smooth confectioneries sold under brand names including Militry Malai Mithai, Sure Milk, Chocorich Rabdi, Milk Valley (milk-based) and Likwi Likwi (chocolate-based), manufactured using SMP, sugar, vegetable palm oil, cocoa powder and flavouring agents. Used as spreads on bread, crackers, biscuits or as fillings/toppings for desserts.
Hard candy lollipops mounted on sticks sold under brand names including Whisstle Heart, SweetArt, Standy Pop, Rozick Pop, Bob Pop, manufactured from Sugar, LG (Liquid Glucose), Acidulent & Flavour ingredients in varied shapes, colors and flavours.
Small, sweet, flavored candies/hot sugar candies sold under brand names including Khapra Paak, Cream Supreme, Café Lathe, Fire Paan, Soft Zone, manufactured from Sugar, LG, Acidulent & Flavour in various shapes, sizes and flavours.
Transparent, soft, chewy confectioneries sold under brand names including Tont, Fruna, Khaye Jao & Fruchee, created with fruit liquids, gelatin and sugars in various fruity flavors and attractive shapes (bears, worms, rings). One of the company's top customers for jelly candies is Dharpal Premchand (BABA) group.
Light and crunchy confectioneries sold under brand names Zomby & Download, prepared from a combination of grains (wheat, rice, oats), perfectly roasted with crispy texture, manufactured to be healthy and nutritious.
Fruit-based confectionery products including tamarind (Imlie)-based candies and jujube (Bare)-based candies sold under brand names Militry Imli, Imlish, Gulaabo Imli, Tamba & Zuzu Ber Chuntye, Zooby Dooby, manufactured using natural fruit pulp, sugar, Liquid Glucose, Salt & Preservative ingredients, retaining original fruit taste without chemicals.
Fancy Items & Molded Chocolates confectionery products manufactured using natural fruit pulp, sugar, cocoa powder, Liquid Glucose, Salt & other Preservative ingredients.
Sales of confectionery, biscuits, dairy products, and ice cream to domestic business houses
Export of products to registered recipients
Trading and resale of stock-in-trade products
Manufacturing and distribution of confectionery products including Rabdi (Meethai Sweet), Milk Paste, Chocolate Paste, Lollipops, Candies, Jelly Candies, Multi-Grain Puff Rolls, Fruit Based Products sold under the brand name, primarily Ofcour's and variants
SWOT Analysis
Strengths
- • 14-year operational history with established pan-India distribution network(p.19)
- • Wide geographical reach across 22 states with approximately 450 suppliers and distributors(p.19)
- • FSSAI, ISO 22000:2018 and FIEO certified manufacturing units with modern equipment(p.19)
- • Diversified product portfolio across multiple confectionery categories(p.19)
- • Strategic location in industrial area enabling efficient procurement and transportation(p.19)
- • Well-established brand with strong market recognition(p.97)
- • Stringent quality control and certifications across production chain(p.97)
- • Established pan-India distribution network across 22 states(p.97)
- • Diversified product portfolio of 56+ confectionery items(p.97)
- • Experienced promoter and management team with FMCG expertise(p.98)
- • 14 years of operational experience in confectionery market(p.95)
- • Established confectionery manufacturer with 14+ years operational history(p.124)
- • Diversified product portfolio across biscuits, dairy, ice-cream, and confectionery(p.150)
- • Promoter with extensive industry experience and business acumen(p.124)
- • Recognition and awards for manufacturing excellence(p.119)
- • 14-year track record strengthening brand across India and abroad(p.188)
- • Pan-India distribution network across 22 states with 450+ suppliers and distributors(p.187)
- • Strategically located manufacturing units with modern, fully-automated and semi-automated machinery(p.187)
- • Recently increased production capacity by 120 tons per month via new uniplast candy machine(p.190)
- • FSAAI, ISO 22000:2018 and FIEO certifications for manufacturing units(p.187)
- • Wide product portfolio catering to diverse consumer preferences(p.187)
Weaknesses
- • High dependence on top 10 customers for 30.84% of revenues(p.25)
- • High dependence on top 10 suppliers accounting for 65.10% of revenues in recent period(p.25)
- • Negative cash flow from operating activities in FY2022(p.34)
- • Significant working capital requirements tied up in debtors and inventories(p.26)
- • Outstanding litigation against promoters and directors involving Rs. 40 Lakhs(p.23)
- • Leased premises for registered office and manufacturing units without ownership(p.33)
- • Total outstanding indebtedness of Rs. 1,895.47 Lakhs as of August 31, 2023(p.32)
- • Contingent liabilities of Rs. 84.2 Lakhs for income tax and TDS demands(p.31)
- • High dependence on relatively few key customers(p.95)
- • Significant outstanding indebtedness of Rs. 1895.47 Lakhs as of August 31, 2023(p.72)
- • Manufacturing units dependent on leased premises with expiring terms(p.110)
- • Relatively moderate capacity utilization rates(p.106)
- • No formal long-term supply agreements with key suppliers(p.109)
- • No formal contractual arrangements with dealers and distributors(p.108)
- • High dependence on two promoter shareholders (99.99% ownership)(p.132)
- • Significant debt burden relative to equity(p.180)
- • Low cash reserves relative to operations(p.146)
- • Very small shareholder base limiting institutional participation(p.122)
- • High inventory levels relative to sales(p.146)
- • Significant dependence on top 5 suppliers (48.18% of procurement as of August 31, 2023)(p.195)
- • Customer concentration with top 5 customers accounting for 21.58% of sales(p.195)
- • High finance costs at ₹68.21 lakhs for 5-month period (2.23% of total income)(p.189)
- • Pending litigation with Karnal Milk Foods Limited for ₹40 crore recovery(p.198)
- • Total outstanding borrowings of ₹1,895.47 lakhs as of August 31, 2023(p.196)
Opportunities
- • India confectionery market expected to grow at 6.3% CAGR reaching Rs. 485.9 Billion by 2028(p.20)
- • Expansion into new geographical markets and customer segments(p.35)
- • International expansion through export to Africa and Middle East markets(p.19)
- • Setting up new manufacturing unit to increase capacity and consolidate operations(p.24)
- • Private labeling arrangement opportunities with customers for exclusive product sales(p.19)
- • Expansion of new manufacturing facility in Indore(p.71)
- • Growth in rural and semi-urban confectionery market penetration(p.98)
- • E-commerce expansion opportunities in FMCG sector(p.87)
- • Growing confectionery market with CAGR of 6.3%(p.92)
- • Favorable government policies and PLI scheme support(p.88)
- • Rising health consciousness driving demand for sugar-free alternatives(p.92)
- • Export opportunities to African and Middle Eastern markets(p.95)
- • Expansion into export markets and international distribution(p.125)
- • Capacity expansion through capital work-in-progress(p.168)
- • Growing demand from business-to-business segments(p.150)
- • Product innovation and diversification in health-conscious categories(p.120)
- • Expansion of distribution network to capture additional market share(p.189)
- • Growth in FMCG sector provides tailwinds for confectionery products(p.189)
- • Increased export potential to new markets(p.187)
- • Private labeling arrangements with customers for exclusive products(p.188)
- • Implementation of solar panels reducing power costs and improving profitability(p.193)
- • Focus on higher-margin product segments driving profitability improvement(p.193)
Threats
- • Highly fragmented and competitive confectionery market with organized and unorganized players(p.35)
- • Volatility in raw material prices due to global supply-demand, weather, and currency fluctuations(p.29)
- • Risks of product contamination, spoilage, and food safety compliance issues(p.28)
- • Dependence on third-party transportation providers for raw materials and distribution(p.31)
- • Regulatory compliance risks including food safety, environmental, and labor laws(p.30)
- • Geographic concentration of sales in Central, Northern and Western India exposing to regional downturn(p.26)
- • Macroeconomic downturn risks in India affecting demand and business operations(p.42)
- • Natural disasters, pandemics, and acts of war affecting operations and supply chains(p.44)
- • Foreign exchange volatility and geopolitical risks in export markets(p.32)
- • Intense competition from organized and unorganized players(p.108)
- • Competition from established multinational and regional confectionery brands(p.108)
- • Risk of new entrants in confectionery segment(p.108)
- • Regulatory compliance requirements under multiple food safety laws(p.108)
- • Dependence on state electricity supply and need for diesel generators(p.109)
- • Exposure to raw material price volatility(p.109)
- • Exposure to fluctuating raw material and input costs(p.147)
- • Competition from organized and unorganized confectionery manufacturers(p.150)
- • Regulatory compliance burden and GST administration complexities(p.175)
- • Working capital volatility and trade receivables collection risk(p.171)
- • Dependence on related party transactions for supply and financing(p.178)
- • Government ban on single-use plastic severely impacting lollipop sales(p.192)
- • Fluctuations in foreign and Indian currency affecting export competitiveness(p.189)
- • Dependence on obtaining licenses in timely manner for operations(p.189)
- • Changes in laws and regulations in FMCG sector affecting business(p.189)
- • General economic and demographic conditions affecting demand(p.189)
- • Competitiveness in confectionery market with intense competition(p.195)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ajay Makhija | Promoter | 48.75% | 35.82% |
| Mr. Akshay Makhija | Promoter | 51.24% | 37.65% |
| Mrs. Minakshi Makhja | Promoter Group | Negligible | Negligible |
| Mrs. Anjali Makhija | Promoter Group | Negligible | Negligible |
| Ms. Nishma Vaswani | Promoter Group | Negligible | Negligible |
| Mr. Sudhir Vaswani | Promoter Group | Negligible | Negligible |
| Mr. Jatin Vaswani | Promoter Group | Negligible | Negligible |
| Mr. Ajay Makhija | Promoter | 48.75% | 35.82% |
| Mr. Akshay Makhija | Promoter | 51.24% | 37.65% |
| Mrs. Minakshi Makhija | Promoter Group & Relatives | Negligible | Negligible |
| Mrs. Anjali Makhija | Promoter Group & Relatives | Negligible | Negligible |
| Ms. Nishma Vaswani | Promoter Group & Relatives | Negligible | Negligible |
| Mr. Sudhir Vaswani | Promoter Group & Relatives | Negligible | Negligible |
| Mr. Jatin Vaswani | Promoter Group & Relatives | Negligible | Negligible |
| Mr. Ajay Makhija | Promoter | 48.75% | — |
| Mr. Akshay Makhija | Promoter | 51.24% | — |
| Ajay Makhija | Promoter | — | — |
| Akshay Makhija | Promoter | — | — |
Leadership
Mr. Ajay Makhija · Managing Director
Mr. Akshay Makhija · Chief Executive Officer
Mr. Satyanarayn Rawat · Chief Financial Officer
Ms. Sunila Kalra · Company Secretary & Compliance Officer
Auto-extracted from the company's DRHP 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 DRHP before relying on it.
Italian Edibles IPO FAQs
What is the lot size of Italian Edibles IPO?
The minimum lot size of Italian Edibles IPO is 2,000 shares. One lot costs ₹1,36,000 at the cut-off price.
When does Italian Edibles IPO open and close?
Italian Edibles IPO opened for subscription on 02 Feb 2024 and closed on 07 Feb 2024.
What is the listing date of Italian Edibles IPO?
Italian Edibles IPO listed on 12 Feb 2024.