Gajanan international LTD IPO : Review, Valuation, Date & GMP

Gajanand International IPO-Complete Overview

Gajanand International IPO an SME IPO is a fixed price issue of Rs.20.65 crore by Gajanand International Ltd. formerly Gajanand Cottex Private Limited which was founded in 2009. The company produces sustainable cotton free of pollution.

The company's assortment of products consists of:

Mech1 cotton: Harvested in November and January and is cultivated in Madhya Pradesh and Maharashtra. It is seeded in June or July.

Shankar6 cotton: India's most exported kind of raw cotton, it is grown domestically.

DCH 32 cotton: It can be harvested from December to March after being sowed in July or August. Madhya Pradesh, Tamil Nadu, and Karnataka are the states where it is grown.

Khol: It's created from pure, premium cotton seeds.

This new SME IPO is to be launched on 09 September 2024, and its ‘initial public offering’ will end on 11 September 2024.

Gajanand International IPO Overview

The Rs.20.65 crore Gajanand International Ltd. IPO consists of an entirely fresh issue of 57.36 lac Shares.

This SME IPO date is from September 09-September 11, 2024. The expected IPO listing date is Monday, September 16, 2024, on NSE and SME. Gajanand International IPO price band is Rs.36 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company’s revenue grew by 48% and PAT increased by 59% for FYs between 31 March 2024 and 31 March 2023.Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.3,931.1 lac.

• The total revenue of the company is Rs.10,874.81 lac.

• The company’s PAT is Rs.223.73 lac.

• The net worth of the company is Rs.1,771.36 lac.

• The company’s EBITDA is Rs.404.07 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital needs

• To cover the issue's costs

• General corporate purposes.

   

  

   

Peers of Gajanand International Ltd.

 

Note: The above comparison of listed peers is as per data as of March 31, 2024.

Evaluation

Gajanand International IPO Price is Rs.36 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.17 from the last year, the resulting P/E ratio is 4.61x.

Considering the weighted EPS of Rs.1.46 for the last three years, the P/E ratio is 45.55x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 62.45x.

 

In simple words, the P/E ratio of Gajanand International IPO (4.61x), compared with the industry’s average P/E of 62.45x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

Note: The EPS and weighted EPS of the company are as of 31 March 2024.

 

IPO's Strengths 

• A capacity is installed of 37,500 MT yearly.

• Benefits of the location.

• Greater business scalability and captive consumption.

 

IPO’s Weaknesses

• Its reliance on transportation services for the procurement and delivery of goods exposes it to many risks and uncertainties, and customer rejection of the items could arise from delivery delays.

• The primary raw material needed to make cotton bales and cotton seeds is seed cotton or Kapas. The weather, natural calamities, changes in international and domestic trade regulations, changes in supply and demand, and other uncontrollable events can all have an impact on the price of the Kapas. Any unfavorable change in the price of cotton will affect its production costs.

• Functions in a competitive market and any inability to successfully compete could lead to a decrease in its market share.

• Its manufacturing unit's installed current production capacity is not being used to its full potential.

• The company had a negative cash flow from its operating, investing, and financing activities in the past FYs, and sustained negative cash flow could impact its growth and business.

 

Gajanand International IPO GMP Today

Gajanand International IPO GMP has not started yet as of 06 September 2024.

 

IPO Timetable (Tentative)

The IPO date is from September 09 to September 11, 2024, with allotment on September 12, refund initiation on September 13, and listing on September 16, 2024.

 

Gajanand International IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 09, 2024, close on September 11, 2024, and offer a total issue size of 57,36,000 Shares (aggregating up to Rs.20.65 Cr.).

 

Gajanand International IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,08,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,16,000.

 

Gajanand International IPO Reservation

Promoters And Management of Gajanand International Ltd.

• Mr. Ashok Bhagvanbhai Monsara

• Mrs. Truptiben Ashokbhai Monsara

• Mr. Ashish Dhirajlal Monsara

 

IPO Lead Managers

• Fast Track Finsec Pvt Ltd.

 

Dividend Policy

The company has not paid dividends in any year.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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