Magson Retail and Distribution
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Jun 2023 – 27 Jun 2023
- Listing date
- 06 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹13.74 Cr
- Market cap at offer price
- ₹51.03 Cr
- Promoter holding
- 95.89% → 70.06% pre-issue → post-issue
- ISIN
- INE0O1S01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- 204-B, Primate Complex, Opp.Mother Milk Palace, Nr.Judges Bungalows Cross Roads, Bodakdev, 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 | 1,06,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,40,000 |
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 (₹) | 4.96 | — |
| P/E (×) | 13.10 | — |
| Market cap | — | ₹51.03 Cr |
Key performance indicators
- Return on net worth
- 27.19%
- Debt / equity
- 0.35
- PAT margin
- 4.00%
- NAV per share
- ₹16.14
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Magson Retail and Distribution
Magson Retail And Distribution Limited (MRDL), incorporated on December 10, 2018 in Ahmedabad, Gujarat and converted into a public limited company in December 2022, is engaged in the retail and distribution of gourmet, frozen and speciality foods. The MagSon brand dates back to July 2009, when promoter Rajesh Francis opened the first Magson Fresh & Frozen store at Vastrapur, Ahmedabad; the present company was incorporated in December 2018 by Rajesh Francis, Manish Pancholi and Maheshbhai Patel to consolidate the retail and distribution operations. Today MRDL operates 26 stores across Western India (Ahmedabad, Vadodara, Surat, Gandhinagar, Rajkot, Jamnagar, Gandhidham, Anand, Udaipur and Thane/Mumbai) — 16 company-operated, 7 franchised and 3 run under two joint ventures (Food Book Associates LLP and Farmags Associates LLP) — plus a standalone chocolate store under the 'My Chocolate World' banner, offering over 3,000 SKUs of frozen vegetarian/non-vegetarian food, premium cheese and dairy, exotic vegetables and fruits, ambient products, imported chocolates and imported packaged goods across more than 30,000 sq. ft. of retail space. It makes money through retail margins at its own and JV stores, distribution margins on wholesale supply of roughly 80% of franchise stores' inventory from a 14,000+ sq. ft. rented Ahmedabad warehouse (with 25,000 cubic feet of cold storage) that sources about 75–80% of goods directly from manufacturers, and packing/marketing of its own 'RF Gourmet' brand launched in December 2021; a mobile e-commerce app started in March 2020 contributes a negligible ~2% of sales. In FY2023 the company reported revenue from operations of ₹6,281.92 lakhs and profit after tax of ₹251.88 lakhs.
Company Analysis
from RHPMagson Retail and Distribution Limited is a Gujarat-based specialty-food retailer and distributor that sells frozen, gourmet, imported and speciality food products through 26 'MagSon'-branded stores (company-owned, franchised and joint-venture formats) and runs a food distribution business supplying franchisees and other vendors.
Magson Retail And Distribution Limited (MRDL), incorporated on December 10, 2018 in Ahmedabad, Gujarat and converted into a public limited company in December 2022, is engaged in the retail and distribution of gourmet, frozen and speciality foods. The MagSon brand dates back to July 2009, when promoter Rajesh Francis opened the first Magson Fresh & Frozen store at Vastrapur, Ahmedabad; the present company was incorporated in December 2018 by Rajesh Francis, Manish Pancholi and Maheshbhai Patel to consolidate the retail and distribution operations. Today MRDL operates 26 stores across Western India (Ahmedabad, Vadodara, Surat, Gandhinagar, Rajkot, Jamnagar, Gandhidham, Anand, Udaipur and Thane/Mumbai) — 16 company-operated, 7 franchised and 3 run under two joint ventures (Food Book Associates LLP and Farmags Associates LLP) — plus a standalone chocolate store under the 'My Chocolate World' banner, offering over 3,000 SKUs of frozen vegetarian/non-vegetarian food, premium cheese and dairy, exotic vegetables and fruits, ambient products, imported chocolates and imported packaged goods across more than 30,000 sq. ft. of retail space. It makes money through retail margins at its own and JV stores, distribution margins on wholesale supply of roughly 80% of franchise stores' inventory from a 14,000+ sq. ft. rented Ahmedabad warehouse (with 25,000 cubic feet of cold storage) that sources about 75–80% of goods directly from manufacturers, and packing/marketing of its own 'RF Gourmet' brand launched in December 2021; a mobile e-commerce app started in March 2020 contributes a negligible ~2% of sales. In FY2023 the company reported revenue from operations of ₹6,281.92 lakhs and profit after tax of ₹251.88 lakhs.
Objects of the Issue
- Opening new stores under the franchise model — setting up the organisation, standard franchise agreements, operating manuals/systems, store design, staff training, computer & software, supplier tie-ups and brand-building/advertising for 10 additional stores ₹ 394.00 lakhs p.85
- Funding additional working capital requirements ₹ 800.00 lakhs p.85
- General corporate purposes ₹ 130.00 lakhs p.85
Issue Structure
- Total Issue
- ₹ 1374.10 lakhs (upto 21,14,000 Equity Shares)
- Fresh Issue
- Upto 21,14,000 Equity Shares aggregating to ₹ 13,74,10,000 (entire issue is a Fresh Issue)
- Price Band
- Fixed Price Issue at ₹ 65 per Equity Share (including a share premium of ₹ 55 per Equity Share)
- Lot Size
- 2000 Equity Shares and in multiples of 2000 thereafter
- Face Value
- ₹ 10
Business Model
Earns revenue primarily from retail sales of frozen, gourmet, imported and speciality food products at its 26 MagSon-branded stores (16 own, 7 franchise, 3 joint-venture); from its distribution vertical, which supplies about 80% of the stock/inventory held by franchise stores (and other vendors) at wholesale prices, with goods largely procured direct from manufacturers; and from its own-brand 'RF Gourmet' packaged products, with a small (~2%) contribution from its online/mobile-app channel.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Emmanuel Francis | Promoter (Managing Director) | 14.59% | 10.66% |
| Manish Shivnarayan Pancholi | Promoter (Whole-Time Director) | 14.59% | 10.66% |
| Jennifer Rajesh Francis | Promoter (Chairperson & Non-Executive Director) | 8.63% | 6.31% |
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.