Grill Splendour Services Ltd. IPO: Review, Valuation, Date & GMP

Grill Splendour Services Limited IPO  - Complete Overview

Established in 2019, Grill Splendour Services Limited operates a chain of gourmet Bakery and Patisserie. With 17 retail stores located in Mumbai, along with a centralized production facility, the company also serves multiple corporate clients. Among these stores, 5 operate under a franchise model, while the remaining 12 are owned by the company itself.

Grill Splendour Services Private Ltd. was formed as a hospitality company with the aim of acquiring the bakery and confectionary business, including the Birdy’s Bakery and Patisserie brand, from WAH Restaurants Private Limited.

The company primarily deals in the sale of various product categories, including Cakes & Pastries, Food, Beverages, and Desserts.

As of November 2023, the company has reported a revenue of Rs. 885.64 lakhs.

 

Grill Splendour Services Limited IPO Overview

Grill Splendour Services Limited IPO date is slated to be open for subscription from April 15, 2024, to April 18, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Grill Splendour Services Limited IPO price is fixed at Rs.120 per share. 

The total issue size of this IPO amounts to Rs.16.47 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Grill Splendour Services Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

(Amount in Lakhs)

Period	30 Nov 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,211.54	764.02	290.59
Total Revenue	885.64	1,531.62	1,152.27
PAT	61.65	199.10	3.46
Net worth	494.98	200.79	1.69
Reserve & Surplus	111.44	199.79	0.69

Outlet wise sales break up

(Amount in Lakhs)

Birdy's Outlets	1-Apr-2023 to 30-Nov2023	1-Apr-2022 to 31-Mar-2023	1-Apr-2021 to 31- Mar-2022
Birdys Andheri	32.97	53.76	59.22
Birdys Azad Road (Franchise)	15.69	28.13	29.70
Birdys Bandra	46.01	82.27	96.74
Birdys Boivali I C Colony (Franchise)	42.50	71.95	104.11
Birdys Borivali I C Colony 2	18.83	43.31	5.11
Birdys Corporate HO	12.77	19.66	12.02
Birdys Dadar	31.27	51.86	51.05
Birdys Dahisar	5.70	28.01	34.70
Birdys Ghatkopar	1.11	27.25	-
Birdys Gokuldham	-	-	-
Birdys Kemps Corner	6.32	-	-
Birdys Lalbaugh	-	-	5.35
Birdys Mahim	4.46	24.91	31.34
Birdys Orlem (Franchise)	36.34	67.97	76.23
Birdys Powai	42.03	76.10	71.81
Birdys Prabhadevi	42.80	80.66	84.27
Birdys Sher E Punjab (Franchise)	40.94	69.06	65.57
Birdys Tardeo	19.47	30.82	35.08
Birdys Upper Govind Nagar	30.60	50.17	58.07
Birdys Veera Desai	23.88	36.23	29.10
Birdys Versova	20.62	39.21	46.29
Birdys Vile Parle	46.75	82.43	90.17
Birdys Wadala	32.92	65.49	67.69
Birdys La Casa (Franchise)	0.94	-	-
Bandra Trend House	2.99	3.57	9.17
Event	-	-	-
Outlet Wise Total	557.91	1,032.81	1,062.81

*the said stores are closed. 

 

Franchisee Owned Stores and Owned Stores Revenue Break Up

(Amount in Lakhs)

Particulars	1-Apr-2023 to 30-Nov2023	1-Apr-2022 to 31-Mar-2023	1-Apr-2021 to 31- Mar-2022
Company operated	415.80	770.08	757.67
Franchise operated	142.10	262.73	305.14
Total	557.91	1,032.81	1,062.81

Online Sales break up

(Amount in Lakhs)

Particulars	1-Apr-2023 to 30-Nov2023	1-Apr-2022 to 31-Mar-2023	1-Apr-2021 to 31- Mar-2022
Swiggy	82.21	138.6	187.96
Zomato	148.93	163.14	136.87
Retail store Sales	326.76	731.07	737.98
Total Sales	557.91	1,032.81	1,062.81

 

Sales Breakup by Customer Segment

(Amount in Lakhs)

Particulars	30.11.23	31.03.23	31.03.22
B2C Sales	557.91	1032.81	1062.81
B2B Sales	325.73	496.54	87.68
Total Sales	883.64	1529.35	1150.49

 

 

 

The Objective of the Issue

The company will use the Net Proceeds from the Fresh Issue for the following Purposes:

1. Meeting additional working capital needs.

2. Repaying certain outstanding borrowings, either in full or partially.

3. Supporting general corporate requirements and initiatives.

Peers of Grill Splendour Services Limited IPO

Name of the Company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
Grill Splendour Services Limited	10	13.19	9.10
Westlife Foodworld	2	7.16	112.36
Sapphire Foods	10	36.70	42.77
Jubilant Foodworks	2	5.35	83.80

 

Evaluation

The IPO is priced Rs.120 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 13.19 from the last year, the resulting P/E ratio is 9.09x.

• Taking into account the weighted EPS of Rs 6.63 for the last three years, the P/E ratio amounts to 18.09x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 79.64x.

As a result, the IPO price range, with a P/E ratio ranging from 9.09x to 18.09x, seems aggresively priced to the industry average of 79.64x.

IPO's Strengths 

• Recognized Brand Strength

• Extensive Store Network Across Mumbai

• Seasoned Promoter and Management Team with Extensive Industry Experience

• Robust B2B Customer Relationships
  
  

 

 

IPO weaknesses 

• The company doesn't engage in long-term contracts with customers and usually relies on purchase orders from walk-in customers.

• It needs to obtain and renew various registrations, licenses, and permits from government and regulatory bodies.

• Operating within a highly competitive industry, the company faces high competition.

• Recent fiscal periods have seen negative cash flow from operating activities.

• Due to the unpredictable nature of its operations, the company's financial performance may vary from year to year, leading to potential volatility in the market price of its Equity Shares.
  
  

IPO GMP Today 

The latest GMP of Grill Splendour Services Limited is Rs.8.

Grill Splendour Services Limited IPO timetable (Tentative)

Grill Splendour Services Limited IPO is scheduled from April 15 to April 18, 2024, with allotment on April 19, refund initiation on April 22, and listing on April 23, 2024.

Events	Date
IPO Opening Date	April 15, 2024
IPO Closing Date	April 18, 2024
IPO Allotment Date	April 19, 2024
Refund initiation	April 22, 2024
IPO Listing Date	April 23, 2024

 

Grill Splendour Services Limited IPO Details 

Grill Splendour Services Limited IPO, with a face value of Rs.10 per share, opens on April 15 and closes on April 18, 2024, offering 1,372,800 shares at Rs. 120 per share, with a lot size of 1200 shares, aiming to raise Rs.16.47 Cr, and will be listed on NSE SME.

IPO opening & closing date	April 15, 2024 to April 18, 2024
Face value	Rs.10 per share
Issue Price	Rs.120 per share
Lot Size	1200 Shares
Price of 1 lot	Rs.144,000
Issue Size	1,372,800 shares (aggregating up to Rs.16.47 Cr)
Fresh issue	1,372,800 shares (aggregating up to Rs.16.47 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

 

Grill Splendour Services Limited IPO Lot Details 

For Grill Splendour Services Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.144,000 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.288,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Grill Splendour Services Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of Grill Splendour Services Limited

• Srinidhi V Rao

• Vandana Srinidhi Rao

• Vivek Vijaykumar Sood

Pre-issue Promoter shareholding	49.75%
Post-issue Promoter shareholding	36.64%

 

Grill Splendour Services Limited IPO Lead Managers

• Inventure Merchant Banker Services Pvt Ltd 
  
  

Dividend Policy

The company hasn't paid any dividends in the past, and whether it will pay dividends in the future depends on how well the company performs financially.

 

 

Conclusion

The company operates in a highly competitive and divided industry. The significant increase in revenue before the IPO might seem like a way to enhance the company's appearance and get a better valuation. Experienced investors may consider the upcoming IPO after conducting a thorough analysis.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!

Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!

• AngelOne
• Zerodha
• Upstox
• Alice Blue

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.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.

 

Promoters and Management of Grill Splendour Services Limited