Srivari Spices & Foods
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Aug 2023 – 09 Aug 2023
- Listing date
- 18 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹42 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹9 Cr
- Market cap at offer price
- ₹30 Cr
- Promoter holding
- 99.90% → 69.94% pre-issue → post-issue
- ISIN
- INE0ON201012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Shed No.5-105/4/A, SY No.234/A, Sriram Industrial Area, Kattedan, Jalpally, Telangana
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 | 6,06,000 | — | — |
| Market maker | 1,08,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹42
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 21,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,08,000 |
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 (₹) | 4.45 | — |
| P/E (×) | 9.44 | — |
| Market cap | — | ₹30 Cr |
Key performance indicators
- Return on net worth
- 24.79%
- ROCE
- 23.65%
- Debt / equity
- 1.41
- PAT margin
- 8.73%
- NAV per share
- ₹18.20
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Srivari Spices & Foods
Srivari Spices and Foods Limited was incorporated on January 29, 2019 and converted to a public limited company on December 27, 2022. The company is engaged in manufacturing spices (turmeric powder, chilli powder, coriander powder, sambar masala, chicken masala, garam masala, mutton masala) and whole wheat flour (chakki atta). The company handpicks raw materials from various parts of the country and processes products without artificial preservatives or chemicals. It operates two manufacturing units in Hyderabad and employs a unique business model manufacturing and packaging products in quantities that sustain shelf life to avoid wastage. The company generates revenue through both D2C (direct-to-consumer) and B2B (business-to-business) models, with approximately 15,000 retail stores for D2C distribution.
Company Analysis
from RHPSrivari Spices and Foods Limited manufactures and sells organic spices and whole wheat flour (chakki atta) primarily in Telangana and Andhra Pradesh.
Srivari Spices and Foods Limited was incorporated on January 29, 2019 and converted to a public limited company on December 27, 2022. The company is engaged in manufacturing spices (turmeric powder, chilli powder, coriander powder, sambar masala, chicken masala, garam masala, mutton masala) and whole wheat flour (chakki atta). The company handpicks raw materials from various parts of the country and processes products without artificial preservatives or chemicals. It operates two manufacturing units in Hyderabad and employs a unique business model manufacturing and packaging products in quantities that sustain shelf life to avoid wastage. The company generates revenue through both D2C (direct-to-consumer) and B2B (business-to-business) models, with approximately 15,000 retail stores for D2C distribution.
Objects of the Issue
- Funding of the working capital requirement of our Company Up to ₹592.52 lakhs p.21
- General corporate purposes [●] (not to exceed 25% of gross proceeds) p.21
- Funding the working capital requirements of our Company Upto ₹592.52 lakhs p.72
- General corporate purposes [●] p.72
- —
Issue Structure
- Total Issue
- Upto 21,42,000 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- Upto 21,42,000 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- 3000 Equity Shares and in multiples of 3000 Equity Shares thereafter
- Face Value
- ₹ 10/- per Equity Share
Business Model
The company manufactures and sells organic spices and whole wheat flour through two models: D2C (direct-to-consumer) selling through approximately 15,000 retail stores with direct doorstep delivery, and B2B (business-to-business) supplying products to businesses for resale to consumers. Products are manufactured without artificial preservatives or chemicals, with packaging in quantities proportionate to shelf life.
Business Segments
SWOT Analysis
- • Strong revenue growth trajectory(p.20)
- • Authentic, unadulterated product positioning without artificial preservatives(p.20)
- • Unique inventory management model avoiding wastage(p.20)
- • Direct-to-consumer distribution network with significant retail presence(p.30)
- • Industry recognition - awarded Best Emerging Spices Brand 2021(p.28)
- • Secured trademark registration for brand protection(p.33)
- • Strong profitability improvement with PAT growing from ₹35.27 lakhs to ₹312.61 lakhs(p.20)
- • No litigation or contingent liabilities(p.21)
- • Unique sustainable direct-to-farmer and D2C business model(p.96)
- • Strong revenue and profitability growth trajectory(p.96)
- • Established brand recognition and industry awards(p.97)
- • Diversified product portfolio across spices and flour categories(p.97)
- • Comprehensive quality control and regulatory compliance infrastructure(p.97)
- • Experienced management team with proven food processing expertise(p.97)
- • Organic, preservative-free product positioning with authentic sourcing(p.96)
- • Established food processing operations with diversified product portfolio(p.117)
- • Strong revenue growth trajectory(p.143)
- • Industry recognition and awards(p.117)
- • Improved profitability(p.143)
- • Established management team with relevant industry experience(p.120)
- • Strong revenue growth and margin expansion(p.170)
- • Unique business model with organic product focus(p.170)
- • Dual revenue streams (D2C and B2B)(p.170)
- • Post-COVID demand surge demonstrates resilience(p.171)
- • Successful product diversification(p.175)
- • Dependency on few key customers for majority of revenue(p.27)
- • No long-term customer agreements(p.27)
- • No long-term supplier agreements for raw materials(p.26)
- • Limited operating history in spices and flour manufacturing(p.28)
- • Significant unsecured loans that can be recalled at any time(p.32)
- • High dependence on a few manufacturing facilities concentrated in Hyderabad(p.29)
- • No long-term transportation agreements(p.31)
- • Premises not owned but leased from promoters and third parties(p.32)
- • Negative cash flows experienced in past(p.32)
- • History of statutory filing delays and inaccuracies(p.26)
- • Delays in GST returns and EPF payments with regulatory penalties paid(p.27)
- • Promoter personal guarantees on loans that could be revoked(p.35)
- • High dependence on top customers for majority of revenue(p.107)
- • Significant increase in working capital requirements(p.74)
- • Limited geographic presence restricted to two states(p.95)
- • Elevated debt levels with significant short-term borrowings(p.48)
- • Young company with limited operating history(p.95)
- • High debt-to-equity ratio indicating leverage risk(p.165)
- • Significant working capital requirements evidenced by high inventory and receivables(p.142)
- • Negative cash flow from operations(p.144)
- • Dependence on personal guarantees from promoters for loans(p.168)
- • High interest rates on unsecured borrowings(p.169)
- • Significant working capital strain with negative operating cash flow(p.177)
- • High finance costs from increased debt(p.176)
- • Elevated debt levels relative to equity(p.179)
- • Geographic concentration in Telangana and Andhra Pradesh(p.170)
- • India's position as world's largest spice producer and exporter(p.20)
- • Growing FMCG sector with household and personal care segment at 50% of sales(p.20)
- • Expansion into new geographic regions within India(p.31)
- • Potential for international market expansion(p.32)
- • Potential to expand product portfolio beyond spices and flour(p.28)
- • Expansion into new geographic markets beyond Telangana and Andhra Pradesh(p.98)
- • High growth in organized spices and blended spices segment(p.94)
- • Penetration into global export markets(p.99)
- • Growing rural and semi-urban FMCG consumption(p.89)
- • Large and growing middle-class consumer base with rising brand consciousness(p.88)
- • Rising consumer preference for organic and premium food products(p.88)
- • Expansion into new product categories(p.117)
- • Geographic expansion through new manufacturing units(p.117)
- • 100% foreign direct investment permitted in animal husbandry sector(p.113)
- • Regulatory support for MSME and food processing sector(p.115)
- • Geographic expansion strategy into new territories and pan-India presence(p.171)
- • Significant market consolidation opportunity in fragmented industry(p.171)
- • India's growing economy and purchasing power(p.171)
- • Product quality and differentiation as competitive advantage(p.171)
- • Migration potential to main board from SME platform(p.206)
- • Regulatory requirement to obtain and renew various licenses and approvals(p.26)
- • Stringent and evolving food safety and health regulations(p.36)
- • Risk of product contamination, adulteration or tampering(p.28)
- • Intense competition from organized and unorganized players(p.33)
- • Price volatility and competition from larger competitors with better resources(p.34)
- • Risk of supply chain disruptions and transportation delays(p.31)
- • Fluctuations in raw material costs and availability(p.27)
- • Risks from changes in Indian economic conditions and interest rates(p.42)
- • Regulatory changes including GST, tax laws and new legislation(p.43)
- • Dependence on Indian economic conditions and political stability(p.43)
- • Risk of natural disasters and power supply disruptions(p.33)
- • Vulnerability to labor disputes and employee attrition in manufacturing(p.29)
- • Risk of adverse regulatory changes or reinterpretation of existing laws(p.43)
- • Intense competition from established FMCG companies and new D2C brands(p.89)
- • Volatility in spice commodity prices and raw material procurement(p.73)
- • Natural calamities and agricultural disruptions impacting raw material supply(p.44)
- • Global economic slowdown and inflation impacting consumer spending(p.85)
- • Regulatory and food safety compliance requirements(p.110)
- • Foreign exchange and monsoon-related vulnerabilities(p.44)
- • Regulatory compliance requirements across multiple jurisdictions(p.111)
- • Complex employment and labour law compliance(p.114)
- • Strict food safety and metrology standards(p.112)
- • Rising borrowing costs and refinancing risk(p.157)
- • Dependence on key management personnel(p.120)
- • High competition with price and quality pressure(p.171)
- • Vulnerability to logistics disruptions and transportation cost volatility(p.171)
- • Macroeconomic slowdown impact on demand(p.171)
- • Regulatory and statutory changes(p.170)
- • Third-party logistics dependency and damage risk(p.171)
- • Key person dependence risk(p.170)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rathi Narayan Das | Promoter | 50.725% | — |
| Neihaa Rathi | Promoter | 49.175% | — |
| Rathi Narayan Das | Promoter | 50.72% | [●] |
| Neihaa Rathi | Promoter | 49.17% | [●] |
| Rathi Narayan Das | Promoter | 50.72% | — |
| Neihaa Rathi | Promoter | 49.17% | — |
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.