Sonalis Consumer Products
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Jun 2023 – 09 Jun 2023
- Listing date
- 19 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹2.83 Cr
- Market cap at offer price
- ₹6 Cr
- Promoter holding
- 73.12% → 38.59% pre-issue → post-issue
- ISIN
- INE0N5O01013
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- Unit No.16, Ground Level, Loft & Basement, Sethia Industrial Estate, Tungareshwar Phata, Vasai East, Dist.Palghar, Maharashtra
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 | 52,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹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 (₹) | 10.08 | — |
| P/E (×) | 2.98 | — |
| Market cap | — | ₹6 Cr |
Key performance indicators
- Return on net worth
- 19.60%
- NAV per share
- ₹10
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sonalis Consumer Products
Sonalis Consumer Products Limited was incorporated on March 15, 2022 and acquired the running business of the partnership firm M/s. Appetite Food through a Business Transfer Agreement dated May 15, 2022. The company was founded by Ms. Sonali Nilesh Kocharekar and Ms. Smita Shashikant Shah, described as 'avid health aware foodies' who created a line of nutritious bars and snacks made from nuts, seeds, flours, healthy oils, and spices under the brand name 'Appetite Food'. The company manufactures a diversified portfolio of products including Nutri-Bars, Laddu (Indian Snacks), and other health-focused snacks targeting children, youth, and adults. The company also undertakes private labelling and contract manufacturing arrangements with customers. Manufacturing is conducted under supervised conditions, with a marketing network spread across Maharashtra, Gujarat, and Goa.
Company Analysis
from RHPSonalis Consumer Products Limited manufactures nutritious snacks and health food bars under the 'Appetite Food' brand, operating in the FMCG and specialty food processing sectors.
Sonalis Consumer Products Limited was incorporated on March 15, 2022 and acquired the running business of the partnership firm M/s. Appetite Food through a Business Transfer Agreement dated May 15, 2022. The company was founded by Ms. Sonali Nilesh Kocharekar and Ms. Smita Shashikant Shah, described as 'avid health aware foodies' who created a line of nutritious bars and snacks made from nuts, seeds, flours, healthy oils, and spices under the brand name 'Appetite Food'. The company manufactures a diversified portfolio of products including Nutri-Bars, Laddu (Indian Snacks), and other health-focused snacks targeting children, youth, and adults. The company also undertakes private labelling and contract manufacturing arrangements with customers. Manufacturing is conducted under supervised conditions, with a marketing network spread across Maharashtra, Gujarat, and Goa.
Objects of the Issue
- Working Capital Requirements ₹180.00 lakhs p.20
- General Corporate Purposes ₹65.20 lakhs p.20
- Issue Expenses ₹38.00 lakhs p.20
- Working Capital Requirements ₹180.00 Lakhs p.64
- General corporate purposes ₹65.20 Lakhs p.64
- Issue Expenses ₹38.00 Lakhs p.64
Issue Structure
- Total Issue
- ₹283.20 lakhs
- Fresh Issue
- 9,44,000 equity shares at ₹30 per share aggregating to ₹283.20 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹30 per equity share (fixed price)
- Lot Size
- 4,000 equity shares with minimum allotment of 4,000 equity shares
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through: (1) manufacture and sale of branded nutritious snacks and health food bars under 'Appetite Food' brand; (2) private labelling arrangements with customers; (3) contract manufacturing services for customers. Revenue for the period ended December 31, 2022 was ₹420.47 lakhs.
Business Segments
SWOT Analysis
- • Diversified product portfolio across segments reduces dependency on single product(p.19)
- • Established manufacturing capabilities with quality control processes(p.19)
- • Operating in high-growth FMCG sector with expanding snacks market(p.19)
- • Organized player in niche segment with established distribution(p.85)
- • State-of-the-art manufacturing with quality control(p.86)
- • Strategic facility location minimizing logistics costs(p.86)
- • Wide sales and distribution network across states(p.86)
- • Diversified product portfolio across five categories(p.87)
- • Experienced management team with domain knowledge(p.87)
- • Diversified product portfolio across multiple snack categories(p.148)
- • Acquired established business with 3-year operating history(p.105)
- • Experienced management team with nutrition and industry expertise(p.149)
- • Established distribution network across multiple states(p.149)
- • Strong financial performance with positive profitability(p.150)
- • Promoter commitment and willingness to forgo remuneration during growth phase(p.110)
- • Heavy dependence on few customers for majority of revenue(p.24)
- • Manufacturing facilities located in leased premises with expiring lease(p.24)
- • No insurance coverage for manufacturing facilities and properties(p.26)
- • Negative cash flows from operations in current period(p.29)
- • Company incorporated recently with limited operating history(p.45)
- • Trademark logo not yet registered in company name(p.25)
- • Recent regulatory compliance lapses and incomplete statutory filings(p.26)
- • Non-compliance with private placement regulations requiring compounding(p.27)
- • No insurance coverage for assets and operations(p.95)
- • Concentration of revenue in top customers(p.96)
- • No formal agreements with dealers and distributors(p.97)
- • Limited geographic presence in three states only(p.84)
- • No intellectual property registrations(p.97)
- • Small employee base of only 9 people(p.95)
- • Very early stage company incorporated only in March 2022(p.105)
- • Limited operational history as independent entity(p.128)
- • High dependence on a small number of distributors(p.149)
- • Limited scale of operations with modest revenue base(p.150)
- • Heavy reliance on two promoter-directors for strategic direction(p.149)
- • Rapid expansion of snacks industry with high growth rates(p.19)
- • Growing FMCG sector with urban and rural market penetration(p.19)
- • Rapid growth in semi-urban and rural FMCG markets(p.19)
- • Expansion into new geographies and market segments planned(p.28)
- • Private labeling and contract manufacturing arrangements with customers(p.19)
- • Expansion into export markets leveraging government initiatives(p.88)
- • Growing rural consumption in FMCG sector(p.73)
- • Expansion into nutraceutical and functional foods segment(p.88)
- • Growing FMCG market projected to reach US$ 220 billion by 2025(p.73)
- • Increasing penetration in semi-urban and rural markets(p.87)
- • Online FMCG market growth opportunity(p.88)
- • Rising disposable incomes driving demand for premium products(p.80)
- • Expansion into new geographies beyond current three states(p.148)
- • Growing health and wellness consumer segment demand(p.148)
- • Development and launch of innovative new products(p.149)
- • Penetration into modern retail/organized trade segment(p.149)
- • Brand recognition building for 'Appetite Food' brand(p.106)
- • Intense competition from organized and unorganized players(p.25)
- • Price volatility and shortage of raw materials affecting costs(p.27)
- • Product contamination and food safety risks inherent in industry(p.25)
- • Regulatory risks from food safety and environmental compliance(p.28)
- • Macroeconomic risks including inflation and interest rate fluctuations(p.28)
- • Dependence on geographical concentration in Maharashtra and Goa(p.28)
- • COVID-19 pandemic causing supply chain and operational disruptions(p.32)
- • Limited supply pool of raw material suppliers(p.31)
- • Shortage or unavailability of utilities like electricity and water(p.34)
- • Transportation and distribution risks affecting product delivery(p.34)
- • Changes in tax laws and regulatory framework(p.37)
- • Intense competition from organized and unorganized players(p.97)
- • Risk of distributor switching to competitors(p.97)
- • Regulatory requirements under Food Safety and Standards Act(p.98)
- • Dependence on raw material procurement from market(p.86)
- • Risk of new market entrants(p.97)
- • Complex labor law compliance requirements(p.99)
- • Volatility in raw material costs and availability(p.150)
- • Rising operational costs including labor and transportation(p.149)
- • Intense competition from existing and new entrants(p.150)
- • Regulatory changes and policy shifts affecting food sector(p.150)
- • Market susceptibility to shifts in consumer preferences(p.149)
- • Exposure to capital market volatility(p.150)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ms. Sonali Nilesh Kocharekar | Promoter | 36.42% | — |
| Ms. Smita Shashikant Shah | Promoter | 36.42% | — |
| Sonali Nilesh Kocharekar | Promoter and Managing Director | 36.42% | 19.22% |
| Smita Shashikant Shah | Promoter and Whole Time Director | 36.42% | 19.22% |
| Shashikant Chimanlal Shah | Promoter Group | 0.26% | 0.14% |
| Shivang Shashikant Shah | Promoter Group | 0.01% | 0.01% |
| Gajanan Chavan | Promoter Group | 0.00% | 0.00% |
| Sonali Nilesh Kocharekar | Promoter | 36.42% | 19.22% |
| Smita Shashikant Shah | Promoter | 36.42% | 19.22% |
| Sonali Nilesh Kocharekar | Promoter | — | — |
| Smita Shashikant Shah | Promoter | — | — |
| Shashikant Chimanlal Shah | Promoter Group | — | — |
| Shivang Shashikant Shah | Promoter Group | — | — |
| Prakash Jhangiani | Promoter | — | — |
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.