Madhusudan Masala
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Sep 2023 – 21 Sep 2023
- Listing date
- 26 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹23.80 Cr
- Market cap at offer price
- ₹90.30 Cr
- Promoter holding
- 100.00% → 73.64% pre-issue → post-issue
- ISIN
- INE0P6701019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- F.P.No.19, Plot No.1-B, Hapa Road, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 9,66,000 | — | — |
| Market maker | 1,72,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
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 (₹) | 6.94 | — |
| P/E (×) | 10.09 | — |
| Market cap | — | ₹90.30 Cr |
Key performance indicators
- Return on net worth
- 52.40%
- ROCE
- 20.08%
- Debt / equity
- 3.84
- PAT margin
- 4.53%
- NAV per share
- ₹13.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Madhusudan Masala
Madhusudan Masala Limited, originally incorporated as partnership firm 'M/s Madhusudan & Co.' in 1982 and converted to public limited company in 2023, is engaged in manufacturing and processing of spices and food products. The company operates from Jamnagar, Gujarat with manufacturing capabilities including cleaning, drying, grinding, blending and packaging of spices. The business generates revenue from ground spices (including chilli, turmeric, coriander powders), blend spices (garam masala, various masalas), whole spices, tea, other grocery products (papad, asafoetida, black salt, etc.), and trading of food grains. The company serves over 2,100 wholesalers and 3,700 retailers primarily in Gujarat, with marginal sales in Maharashtra and Rajasthan. For fiscal year 2022-23, revenue from operations was ₹12,721.60 lakhs with profit after tax of ₹575.89 lakhs.
Company Analysis
from RHPMadhusudan Masala Limited manufactures and processes more than 32 types of spices under 'DOUBLE HATHI' and 'MAHARAJA' brands, along with tea and other grocery products, serving primarily Gujarat with organized retail distribution.
Madhusudan Masala Limited, originally incorporated as partnership firm 'M/s Madhusudan & Co.' in 1982 and converted to public limited company in 2023, is engaged in manufacturing and processing of spices and food products. The company operates from Jamnagar, Gujarat with manufacturing capabilities including cleaning, drying, grinding, blending and packaging of spices. The business generates revenue from ground spices (including chilli, turmeric, coriander powders), blend spices (garam masala, various masalas), whole spices, tea, other grocery products (papad, asafoetida, black salt, etc.), and trading of food grains. The company serves over 2,100 wholesalers and 3,700 retailers primarily in Gujarat, with marginal sales in Maharashtra and Rajasthan. For fiscal year 2022-23, revenue from operations was ₹12,721.60 lakhs with profit after tax of ₹575.89 lakhs.
Objects of the Issue
- Funding to meet working capital requirements ₹1,600.00 lakhs p.76
- General Corporate Purpose [●] lakhs (to be finalized at prospectus stage, subject to maximum of 25% of Gross Proceeds) p.76
Issue Structure
- Total Issue
- Upto 34,00,000 Equity Shares (₹[●] lakhs at issue price of ₹[●] per share)
- Fresh Issue
- Upto 34,00,000 Equity Shares of face value of ₹10 each
- Offer for Sale
- Not Applicable - Entire issue constitutes fresh issue of equity shares
- Price Band
- ₹[●] to ₹[●] per equity share (to be determined and published 2 working days before bid opening)
- Lot Size
- [●] equity shares (to be finalized at prospectus stage)
- Face Value
- ₹10 per equity share
Business Model
Revenue is earned through manufacturing and selling branded spices and food products (approximately 47.18% of revenue in FY2023) through a network of wholesalers and retailers, and through trading of whole spices and food grains in unbranded sales (approximately 52.82% of revenue in FY2023). The company produces spices in-house using mechanical processes and sources certain products like tea and other grocery items from third-party manufacturers for packaging and distribution under the 'DOUBLE HATHI' brand.
Business Segments
SWOT Analysis
- • Recognized brand heritage spanning over four decades with strong brand names 'DOUBLE HATHI' and 'MAHARAJA'(p.102)
- • Consistent focus on quality with ISO certifications and FSSAI compliance(p.102)
- • Extensive distribution network with 2,100+ wholesalers and 3,700+ retailers(p.104)
- • Diversified product portfolio with 145 SKUs of ground spices and 67 blend spice variants(p.109)
- • In-house manufacturing capabilities with mechanized production and hygienic processing(p.106)
- • Significant reliance on chilli products—34.01% of revenue in FY2023(p.29)
- • Limited manufacturing for some grocery products; dependent on third-party suppliers(p.27)
- • Lack of long-term supply contracts with raw material vendors(p.27)
- • Heavy concentration of sales in Gujarat region—over 85% of revenue(p.30)
- • Low capacity utilization rates across manufacturing facilities(p.111)
- • High dependence on top 10 suppliers—32.03% of raw material purchases in FY2023(p.28)
- • Negative cash flows from operations in recent years(p.32)
- • High debt burden with unsecured loans of Rs. 2,095.79 lakhs as of March 31, 2023(p.41)
- • Trademark application opposed—key branding asset at risk(p.34)
- • Educational qualifications of certain directors not traceable(p.42)
- • Expand market presence to other states through distributor network(p.106)
- • Scale up branding and digital presence through e-commerce platforms(p.107)
- • Modernize manufacturing facility with latest technology and automation(p.108)
- • Construct multi-commodity cold storage facility to improve operational efficiency(p.108)
- • India's food processing sector expected to reach US$ 535 billion by 2025-26(p.100)
- • Growing demand for packaged spices driven by urbanization and rising per capita income(p.107)
- • India's record spice exports with 15.31 million MT exported in 2021-22(p.93)
- • Intense competition from organized and unorganized players in fragmented market(p.29)
- • Volatile raw material prices driven by agricultural volatility and geopolitical factors(p.27)
- • Dependency on agricultural production subject to monsoon and weather variability(p.30)
- • Seasonality in raw material procurement affecting operations and cash flows(p.30)
- • Regulatory compliance risks including FSSAI licensing and environmental regulations(p.35)
- • Risk of product contamination and food safety violations(p.29)
- • Slowdown in economic growth affecting consumer spending on spices(p.46)
- • Changes in tax laws and government policies affecting profitability(p.46)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dayalji Vanravan Kotecha | Promoter | 16,00,000 shares (16.84%) | 16,00,000 shares (12.40%) |
| Vijaykumar Vanravan Kotecha | Promoter | 16,00,000 shares (16.84%) | 16,00,000 shares (12.40%) |
| Rishit Dayalaji Kotecha | Promoter | 22,86,000 shares (24.06%) | 22,86,000 shares (17.72%) |
| Hiren Vijaykumar Kotecha | Promoter | 22,86,000 shares (24.06%) | 22,86,000 shares (17.72%) |
| Foram Rishit Kotecha | Promoter | 8,55,000 shares (9.00%) | 8,55,000 shares (6.63%) |
| Mayuri Hiren Kotecha | Promoter | 8,55,000 shares (9.00%) | 8,55,000 shares (6.63%) |
| Madhusudan Auto-Biz Private Limited | Promoter Group | 18,000 shares (0.20%) | 18,000 shares (0.14%) |
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.