Valencia Nutrition SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Dec 2019 – 27 Dec 2019
- Listing date
- 06 Jan 2020
- Face value
- ₹10 per share
- Issue price
- ₹46 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹7.23 Cr
- Promoter holding
- 82.09% → 62.91% pre-issue → post-issue
- ISIN
- INE08RT01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- D. No. 134, 6th Main,, 1st Block, Banashankari,, 3rd Stage,, Karnataka
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 | 84,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹46
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,38,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,76,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,66,000 |
| B-HNI (min) | 8 | 24,000 | ₹11,04,000 |
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 |
|---|
About Valencia Nutrition SME
Valencia Nutrition Limited was incorporated on April 01, 2013 as a private limited company under the Companies Act, 1956, and converted to a public limited company on April 09, 2018. The company operates as an applied biotechnology startup in the niche field of researching, developing, and marketing nutraceutical products. Its portfolio includes 'Bounce Superdrinks' and 'VitaMe Enriched Beverage,' which are high-quality, best-in-class multinutrient functional beverages designed to prevent and manage lifestyle-related diseases. The company generates revenue from the sale of these functional beverages to distributors in South India, with a focus on semi-urban and rural markets. The company has incurred losses in the past due to research and development activities and seasonal business patterns.
Company Analysis
from RHPValencia Nutrition Limited is an applied biotechnology startup researching, developing, and marketing high-quality nutraceutical products, specifically multinutrient functional beverages to prevent and manage lifestyle-related diseases.
Valencia Nutrition Limited was incorporated on April 01, 2013 as a private limited company under the Companies Act, 1956, and converted to a public limited company on April 09, 2018. The company operates as an applied biotechnology startup in the niche field of researching, developing, and marketing nutraceutical products. Its portfolio includes 'Bounce Superdrinks' and 'VitaMe Enriched Beverage,' which are high-quality, best-in-class multinutrient functional beverages designed to prevent and manage lifestyle-related diseases. The company generates revenue from the sale of these functional beverages to distributors in South India, with a focus on semi-urban and rural markets. The company has incurred losses in the past due to research and development activities and seasonal business patterns.
Objects of the Issue
- Construction of New Corporate Office and Research Development & Pre Mix Laboratory Building called 'Valencia House' at Anjanapura, Bengaluru ₹200.00 lakhs p.17
- Purchase of Key Lab Equipments for expanding R&D facilities ₹52.40 lakhs p.17
- Sales, Marketing and Distribution Expenses for increasing brand value and improved geographical reach ₹184.65 lakhs p.17
- General corporate purposes ₹89.76 lakhs p.17
- Construction of New Corporate Office and Research Development & Pre Mix Laboratory Building called 'Valencia House' at Anjanapura, Bengaluru ₹ 200.00 lakhs p.64
- Purchase of Key Lab Equipments for expanding R&D facilities ₹ 51.82 lakhs p.64
- Sales, Marketing and Distribution Expenses for increasing our brand value and improved geographical reach ₹ 184.65 lakhs p.64
- General corporate purposes ₹ 90.34 lakhs p.64
- Funding capex for the new manufacturing facility and associated infrastructure
Issue Structure
- Total Issue
- ₹723.12 lakhs
- Fresh Issue
- ₹600.30 lakhs (13,05,000 Equity Shares of ₹10 each at ₹46 per share)
- Offer for Sale
- ₹122.82 lakhs (2,67,000 Equity Shares of ₹10 each at ₹46 per share)
- Price Band
- ₹46 per share (fixed price issue)
- Lot Size
- 3,000 Equity Shares
- Face Value
- ₹10 per share
Business Model
The company operates a manufacturing business model with outsourcing for production, bottling, and packaging. It generates revenue from the sale of nutraceutical beverages to distributors. The company maintains an in-house research and development center for product development and improvement, incurring significant expenses for R&D, business promotion, and marketing. Sales are made through distributors primarily in South India, with products distributed to retailers and end consumers.
Business Segments
SWOT Analysis
- • Applied biotechnology startup with focused R&D in nutraceutical functional beverages for lifestyle disease management(p.16)
- • Established brand portfolio with registered trademarks for key products(p.24)
- • Experienced management with healthcare and nutrition expertise(p.30)
- • Experienced management team with deep domain expertise(p.155)
- • Founder with over two decades of biomedical research and product development experience(p.155)
- • In-house product development and formulation capabilities(p.155)
- • Outsourced manufacturing model providing operational efficiency(p.155)
- • Early-stage player in nascent but high-potential functional beverage market(p.155)
- • Company has incurred consistent losses across multiple fiscal years(p.21)
- • Significant unsecured loans from Directors and Promoters repayable on demand(p.25)
- • Negative cash flows from operations in all reported periods(p.28)
- • Products are perishable with shelf life of 6-9 months creating inventory risk(p.23)
- • Missing statutory approvals for registered office, corporate office, and warehouse(p.23)
- • Heavy dependence on Directors and Key Managerial Personnel for business continuity(p.30)
- • No insurance coverage for branches and registered office against hazards(p.28)
- • Facilities used on rental basis with no ownership security(p.25)
- • Significant accumulated losses and negative cash flows from operations(p.158)
- • Persistent negative cash flows from operating activities(p.163)
- • High employee benefit expenses relative to revenue(p.160)
- • Significant dependence on a few customers(p.164)
- • Group company with negative net worth and continuous losses(p.130)
- • Pending income tax litigation with unascertainable amount at stake(p.167)
- • Large and growing Indian nutraceutical market with high growth projections(p.16)
- • Rising lifestyle diseases increasing demand for nutritional supplements in growing middle class(p.16)
- • Significant growth opportunity in under-penetrated semi-urban and rural markets(p.22)
- • Aging population driving demand for functional beverages(p.16)
- • Plans to expand R&D capabilities and product development(p.17)
- • Strategy to increase brand value and geographic reach through marketing investment(p.17)
- • Rapid growth in global nutraceutical market expected to reach USD 671.30 billion by 2024(p.155)
- • Indian nutraceutical market forecasted to grow significantly from USD 2.8 billion to USD 8.5 billion by 2022(p.155)
- • Emerging functional beverage segment with significant growth potential(p.155)
- • Increasing consumer awareness and preventive healthcare focus(p.155)
- • Seasonal demand fluctuations with lower sales during winter and rainy seasons(p.21)
- • Substitute products from dairy and fresh juice alternatives limiting market growth(p.22)
- • Geographic concentration of sales in South India creates regional dependency risk(p.22)
- • Dependence on third-party suppliers with no long-term supply agreements(p.25)
- • Raw material price fluctuations beyond company control affecting margins(p.26)
- • Intense competition from established manufacturers with strong brand recognition(p.26)
- • Risk of spurious and counterfeit products damaging brand reputation(p.24)
- • Dependence on road transportation subject to weather and infrastructure disruptions(p.24)
- • Regulatory changes could increase compliance costs and operational disruptions(p.33)
- • Macroeconomic slowdown and political instability could reduce consumer spending(p.34)
- • Intense competition in functional beverages market from multiple manufacturers(p.156)
- • Competition from alternative products and local retailers(p.156)
- • High geographical concentration of sales in Karnataka(p.156)
- • Dependence on consumer preferences and spending patterns in discretionary spending category(p.157)
- • Vulnerability to media coverage regarding product safety and quality(p.157)
- • Seasonal business with lower sales during winter and monsoon(p.164)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mrs. Deepthi Anand | Promoter | 43.92% | 33.66% |
| Mr. Manish Turakhia | Promoter | 5.57% | 4.27% |
| Mrs. Deepthi Anand | Promoter | 43.92% | 33.66% |
| Mr. Manish Turakhia | Promoter | 5.57% | 4.27% |
| Veer Value Ventures LLP | Promoter Group | 13.67% | 10.47% |
| Chauhan Ventures LLP | Promoter Group | 5.16% | 3.96% |
| Jash Ventures | Promoter Group (represented by Partner Mr. Manish Turakhia) | 4.66% | 3.57% |
| Mrs. Deepthi Anand | Promoter | 49.29% | — |
| Mr. Manish Turakhia | Co-Promoter, Chairman and Non-Executive Director | 6.25% | — |
| Mrs. Deepthi Anand | Promoter | — | — |
| Mr. Manish Turakhia | Co-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.