Jeyyam Global Foods
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Sep 2024 – 04 Sep 2024
- Listing date
- 09 Sep 2024
- Face value
- ₹5 per share
- Issue price
- ₹61 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹81.94 Cr
- Market cap at offer price
- ₹290 Cr
- Promoter holding
- 92.00% → 65.76% pre-issue → post-issue
- ISIN
- INE0RXB01022
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Corpwis Advisors Pvt.Ltd.
- Registered office
- No.37 (Old No.19), Padmavathiyar Road, Gopalapuram, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,76,000 | — | — |
| Market maker | 6,72,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹61
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,22,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,44,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,76,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,98,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.26 | 3.18 |
| P/E (×) | 14.32 | 19.18 |
| Price to book (×) | 2.69 | — |
| Market cap | — | ₹290 Cr |
Key performance indicators
- Return on net worth
- 18.81%
- ROCE
- 26.27%
- Debt / equity
- 1.20
- PAT margin
- 2.40%
- NAV per share
- ₹22.66
- Price to book
- 2.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Jeyyam Global Foods
Jeyyam Global Foods Limited, incorporated in 2008 and converted to a public company in May 2023, is a food processing company with over 15 years of experience in the chana (Bengal Gram) industry. The company specializes in manufacturing and processing chana and related products (including fried gram and besan flour), supplying to distributors, large retailers, hotels, restaurants, caterers, branded supermarkets, and wholesalers. The company operates two manufacturing facilities located in Tamil Nadu and Andhra Pradesh, both holding FSSAI licenses and ISO 9001:2015 and ISO 22000:2018 certifications. Jeyyam brand is positioned as synonymous with quality, trust, and innovation. The company generates revenue primarily from B2B sales of chana and related products (99% of revenue in FY2024), with geographic concentration in Tamil Nadu (81.95% of FY2024 revenue) and Karnataka (11.81%). The company is engaged in research and development and intends to enter B2C business with spices, masala, ready-to-cook and ready-to-eat foods, salt, sugar, soya, and vermicelli.
Company Analysis
from RHPJeyyam Global Foods manufactures and processes Bengal Gram (Chana), Fried Gram, and Besan Flour for distribution to retailers, hotels, restaurants, and branded supermarkets, with plans to expand into B2C spices, masala, ready-to-cook foods, and other kitchen essentials.
Jeyyam Global Foods Limited, incorporated in 2008 and converted to a public company in May 2023, is a food processing company with over 15 years of experience in the chana (Bengal Gram) industry. The company specializes in manufacturing and processing chana and related products (including fried gram and besan flour), supplying to distributors, large retailers, hotels, restaurants, caterers, branded supermarkets, and wholesalers. The company operates two manufacturing facilities located in Tamil Nadu and Andhra Pradesh, both holding FSSAI licenses and ISO 9001:2015 and ISO 22000:2018 certifications. Jeyyam brand is positioned as synonymous with quality, trust, and innovation. The company generates revenue primarily from B2B sales of chana and related products (99% of revenue in FY2024), with geographic concentration in Tamil Nadu (81.95% of FY2024 revenue) and Karnataka (11.81%). The company is engaged in research and development and intends to enter B2C business with spices, masala, ready-to-cook and ready-to-eat foods, salt, sugar, soya, and vermicelli.
Objects of the Issue
- Funding of Working Capital requirements 3,500.00 lakhs p.24
- Capital Expenditures 1,900.00 lakhs p.24
- General Corporate Expenses p.24
- Funding of Working Capital requirements ₹3,500 Lakhs p.99
- Capital expenditures ₹1,900 Lakhs p.96
- General Corporate Expenses p.96
- Working Capital Requirements ₹3,500 lakhs p.114
- Capital Expenditures - Construction of Building for Manufacturing Unit/Storage Area in Salem, Tamil Nadu ₹900 lakhs p.102
- Capital Expenditures - Procurement of Plant and Machinery for 2 Bengal Gram Cleaning and Grading Units in Maharashtra ₹500 lakhs p.104
- Capital Expenditures - Procurement of Plant and Machinery for 1 Integrated Unit in Madhya Pradesh ₹500 lakhs p.106
- General Corporate Purposes p.113
- Not specified in this part of the document
- Repayment of borrowings
- Funding capex/capital expenditure
- General corporate purposes
Issue Structure
- Total Issue
- up to 1,34,32,000 Equity Shares aggregating upto ₹ [●] lakhs
- Fresh Issue
- Fresh Issue of upto 1,20,88,800 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Offer for Sale of upto 13,43,200 Equity Shares aggregating to ₹ [●] Lakhs by Mr. Shripal Veeramchand Sanghvi
- Price Band
- Floor Price ₹59 per Equity Share; Cap Price ₹61 per Equity Share
- Lot Size
- 2,000 Equity Shares and in multiples of 2,000 Equity Shares thereafter
- Face Value
- ₹ 5/- each
Business Model
The company operates a B2B distribution model, manufacturing and processing chana-based products at its two manufacturing facilities and selling through a distributor network (338 distributors as of March 2024) to retailers, hotels, restaurants, and supermarkets. Revenue is generated from the sale of processed chana, fried gram, besan flour, and other ancillary products. The company generates 99% of revenue from chana and related products, with the remaining 1% from other products including sugar, value-added products like masala powders, and gunny/charcoal/scrap.
Business Segments
SWOT Analysis
- • Operational scale and market presence with diverse product portfolio(p.50)
- • Established financial performance with consistent revenue and profit growth(p.65)
- • Access to credit facilities and banking relationships(p.98)
- • Chana-focused manufacturing with R&D expertise(p.157)
- • Strong brand reputation for quality(p.145)
- • Experienced management team(p.157)
- • Advanced automated manufacturing facilities(p.158)
- • Diverse B2B customer base(p.157)
- • Quality certifications and compliance(p.158)
- • Strong financial performance and growth(p.119)
- • Diversified product portfolio across multiple food categories(p.188)
- • Long-standing relationships with multiple suppliers reducing concentration risk(p.175)
- • Comprehensive insurance coverage for key assets(p.173)
- • Established distribution network with significant reach(p.174)
- • No labour disputes or unionization(p.191)
- • Registered trademarks providing brand protection(p.174)
- • Established brand reputation in chana products with quality focus(p.268)
- • Integrated chana value chain with backward and forward integration(p.268)
- • Multiple manufacturing and distribution facilities across regions(p.300)
- • Strong revenue and profit growth over three years(p.273)
- • ISO and FSSAI certifications demonstrating quality compliance(p.268)
- • Diversified customer base across distributors, retailers, hotels, and restaurants(p.268)
- • Dependence on key employees and technical know-how vulnerable to leakage(p.50)
- • Technical know-how lacks legal protection under Indian law(p.50)
- • Significant reliance on leasehold properties with renewal risks(p.51)
- • High short-term borrowing obligations(p.65)
- • Vulnerability to inventory losses and operational incidents(p.50)
- • Promoter guarantee dependency for lender facilities(p.50)
- • Potential weakness in internal control systems(p.52)
- • High dependence on bulk B2B segment(p.159)
- • Limited product portfolio focused on chana(p.158)
- • Geographic concentration in South India(p.159)
- • High debt-to-equity ratio(p.156)
- • Unregistered property asset(p.160)
- • High attrition rate of skilled employees(p.171)
- • Heavy dependence on raw material costs affecting profitability(p.174)
- • Significant concentration of debt obligations guaranteed by promoters(p.192)
- • Dependence on distributor relationships without formal agreements(p.174)
- • Pending trademark registrations creating uncertainty(p.174)
- • Partial insurance coverage leaving exposure to uninsured liabilities(p.173)
- • High concentration of revenues among few top customers(p.272)
- • Significant dependence on a limited number of suppliers(p.277)
- • High debt-to-equity ratio(p.270)
- • Multiple outstanding tax disputes and income tax demands(p.283)
- • Pending litigation including NCLAT appeal with potential ₹52 lakh liability(p.259)
- • Material litigation involving alleged unpaid bonus payments of ₹52 lakh(p.284)
- • Expansion into new processing and manufacturing capabilities(p.101)
- • Working capital enhancement to support business growth(p.99)
- • Public listing to enhance corporate credibility and market access(p.95)
- • Customer relationship expansion through extended credit terms(p.101)
- • Geographic expansion to national market(p.159)
- • Entry into kitchen essentials segment(p.158)
- • Export market development(p.159)
- • Multiple manufacturing facility expansion(p.159)
- • Growth in processed food demand(p.141)
- • Increasing health consciousness driving chana demand(p.147)
- • Expansion into new geographic markets and product categories(p.173)
- • Leverage of agricultural export promotion schemes(p.177)
- • Growth in FMCG sector with evolving consumer preferences(p.173)
- • Benefits from farmers' produce trading liberalization(p.178)
- • Scale-up opportunities through manufacturing and processing expansion(p.187)
- • Expansion into new product categories beyond chana(p.268)
- • Growth in nutrient-dense food consumption trends(p.273)
- • Pan-India market expansion strategy(p.268)
- • Establishment of B2C business model(p.268)
- • IPO funding to support capital expansion and debt reduction(p.268)
- • Inability to adopt new technologies to maintain quality standards(p.50)
- • IT system failures and cyber security risks(p.50)
- • Natural disasters, epidemics, and geopolitical instability(p.53)
- • Evolving and uncertain regulatory environment(p.53)
- • Impact of Indian tax regime changes and GST compliance(p.56)
- • Inflation and inability to pass costs to consumers(p.56)
- • Competition law compliance risks(p.55)
- • Global financial instability and economic volatility(p.55)
- • Risk of sovereign rating downgrades affecting financing costs(p.54)
- • High competition in packaged food sector(p.159)
- • Volatility of raw material costs(p.159)
- • Government control on crop prices(p.159)
- • Government restrictions on import-export(p.159)
- • Multiple competitors in the segment(p.159)
- • Concentrated customer base(p.157)
- • Highly competitive market dominated by few large enterprises(p.173)
- • Volatility and availability of key raw materials like chickpeas(p.174)
- • Regulatory compliance burden across multiple food safety regimes(p.176)
- • Stringent food quality and safety requirements(p.177)
- • Compliance with evolving e-commerce regulations affecting distribution(p.180)
- • Seasonal business volatility tied to chana crop cycles(p.277)
- • Raw material price volatility and supply disruptions(p.269)
- • Competitive pressure from existing and new market entrants(p.269)
- • Regulatory and food safety compliance risks(p.286)
- • Working capital management challenges and cash flow constraints(p.275)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Shripal Veeramchand Sanghvi | Promoter/Whole Time Director | 24.12% | — |
| Amit Agarwal | Promoter/Managing Director | 15.00% | — |
| Mrs. Sujathaa Mehta | Promoter | 6.25% | — |
| Shanti Guru Industries Limited | Promoter (Corporate) | 19.89% | — |
| Mrs. Sarika Ssangavi | Promoter | 0% | — |
| Shripal Sanghvi HUF | Promoter | 0% | — |
| Mahipal Sanghvi HUF | Promoter | 0% | — |
| Shripal Veeramchand Sanghvi | Promoter | 24.12% | 15.15% |
| Shanti Guru Industries Limited (Formerly known as RCL Retail Limited) | Promoter | 19.89% | 14.83% |
| Amit Agarwal | Promoter | 15.00% | 11.18% |
| Sujathaa Mehta | Promoter | 6.25% | 4.66% |
| Siddharrth Mehta | Promoter Group | 7.99% | 5.96% |
| Shrreyans Mehta | Promoter Group | 6.25% | 4.66% |
| Arihanth Mehta | Promoter Group | 6.25% | 4.66% |
| Simran Sureshchand | Promoter Group | 6.25% | 4.66% |
| Amit Agarwal | Promoter | 15.00% | — |
| Sujathaa Mehta | Promoter Group | 6.25% | — |
| Shrreyans Mehta | Promoter Group | 5.06% | — |
| Arihant Mehta | Promoter Group | 5.74% | — |
| Siddharrth Mehta | Promoter Group | 7.99% | — |
| Shripal Veeramchand Sanghvi | Promoter | 24.12% | 15.13% |
| Amit Agarwal | Promoter | 15.00% | 11.18% |
| Mrs. Sujathaa Mehta | Promoter | 6.25% | 4.66% |
| Shanti Guru Industries Limited | Promoter Group | 19.89% | — |
| Mrs. Sarika Ssangavi | Promoter | — | — |
| M/s. Shripal Sanghvi HUF | Promoter | — | — |
| M/s. Mahipal Sanghvi HUF | Promoter | — | — |
| Shripal Veeramchand Sanghvi | Promoter/Whole Time Director | 24.12% | — |
| Shanti Guru Industries Limited | Promoter Group | 19.89% | — |
| Amit Agarwal | Promoter/Managing Director | 15.00% | — |
| Sujathaa Mehta | Promoter | 6.25% | — |
| Shreyans Mehta | Promoter | 6.25% | — |
| Arihanth Mehta | Promoter | 6.25% | — |
| Simran Sureshchand | Promoter | 6.25% | — |
| Siddharth Mehta | Promoter | 7.99% | — |
| Shripal Veeramchand Sanghvi | Selling Shareholder | 7.59% | — |
| Shripal Veeramchand Sanghvi | Selling Shareholder | — | — |
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.