Italian Edibles Ltd IPO - Review, Valuation, Opening Date & GMP

Italian Edibles Limited IPO  - Complete Overview

Italian Edibles Limited, established in 2009, provides a variety of confectionery products under the OfCour's brand, including Rabdi, milk paste, chocolate paste, lollipops, candies, jelly sweets, multigrain puffed buns, and fruit-based items. The company has manufacturing facilities in Indore, Madhya Pradesh.

As of August 31, 2023, their customer list includes Bakewell Biscuits Private Limited, Mamta Stores, Ma Laxmi Traders, Suria Distributor, Chocolate World, etc.

Italian Edibles Pvt. Ltd. is valued for manufacturing and supplying confectionery products, with a dedicated team of 15 employees in sales and marketing. Their products are available nationwide, primarily in rural and semi-urban regions of Andhra Pradesh and Assam and export products to countries like Nigeria, Yemen, Sinegal, and Sudan.

They are known for their quality, variety, and ability to meet bulk demands efficiently. 

 

Italian Edibles Limited IPO Overview

Italian Edibles Limited IPO date is slated to be open for subscription from February 2, 2024, to February 7, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Italian Edibles Limited IPO price is fixed at Rs.68 per share.

The total issue size of this IPO amounts to Rs.26.22 CR. The company has reserved 50% for Retail investors and 50% for other investors. 

 

 

Italian Edibles Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	2 February 2024
IPO Closing Date	7 February 2024
IPO Allotment Date	8 February 2024
Refund initiation	9 February 2024
IPO Listing Date	12 February 2024

 

Italian Edibles Limited IPO Details

IPO Opening & Closing Date	2 February to 7 February 2024
Face value	Rs.10 per Share
Issue Price	Rs.68 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs.136,000
Total Issue Size	3,920,000 Shares (aggregating up to Rs.26.66 Cr)
Fresh issue	3,920,000 Shares (aggregating up to Rs.26.66 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO.
Registrar	Bigshare Services Pvt Ltd

 

 

Italian Edibles Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	2000	Rs.1,36,000
Maximum Lot Investment (Retail)	1 lot	2000	Rs.1,36,000
Minimum Lot Investment (HNI)	2 lot	4000	Rs.2,72,000

 

Italian Edibles Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

Italian Edibles Limited demonstrated positive financial results as of August 31, FY23, with increased total assets, revenue, and profit.

(Amount in Lakhs)

Period	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	4,824.64	4,155.24	3,905.45
Total Revenue	3,052.16	6,330.09	7,545.25
PAT	209.68	264.21	80.21
Net worth	1,287.92	1,078.24	814.03
Reserve & Surplus	202.21	906.82	642.60

 

Revenue Distribution Product-Wise  

Revenue distribution by product category as of August 31, FY23:        

(in % age)

Particulars	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Rabdi , Milk and Chocolate Paste Products	52.50	58.49	44.31
Lollipops	12.16	12.12	28.25
Hard Candies	6.37	9.62	5.98
Jelly Candies	16.49	10.66	8.91
Multi-Grain Puff Rolls	1.80	1.62	2.41
Fruit Based Products	3.84	7.07	8.39
Other products	6.84	0.41	1.75
Total	100%	100%	100%

 

Revenue Distribution Location-Wise

Revenue distribution comes mostly from domestic sales with a smaller portion from exports .

(in % age)

Particulars	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Domestic Sales	95.34%	94.66%	95.18%
Export Sales	4.66%	5.34%	4.82%
Total	100%	100%	100%

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Setting up of the proposed manufacturing unit;

• Repayment of certain Borrowings;

• To meet incremental working capital requirements; and

• General Corporate Expenses.

 

Promoters and Management of Italian Edibles Limited IPO

1. Mr. Ajay Makhija.

2. Mr. Akshay Makhija.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.47%

 

Italian Edibles Limited IPO Lead Managers

•  First Overseas Capital Limited

 

Peers of Italian Edibles Limited IPO

Italian Edibles Limited IPO demonstrates stronger profitability and valuation compared to its peers.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Italian Edibles Limited	10.00	27.94	2.43
Lotus Chocolate Co.ltd.	10.00	-36.25	-5.42
Tapi Fruit Processing Limited	10.00	-156.33	-0.75

 

Evaluation

The IPO is priced within the range of Rs. 68 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.43 from the last year, the resulting P/E ratio is 27.94x.

- Taking into account the weighted EPS of Rs 1.60 for the last three years, the P/E ratio amounts to 42.5x.

    

Comparative Analysis with Industry Average:

- The industry's average P/E is 156.33x.

 

As a result, the IPO price range, with a P/E ratio ranging from 27.94x to 42.5x, seems highly undervalued in comparison to the industry average of 156.33x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

IPO's Strengths

• Well Established Brand name and goodwill amongst market players.

• Consistent focus on quality.

• Well established relationships with their suppliers and wide channel of sales and distribution network.

• Diversified Product Portfolio.

• Experienced promoter and management team.

 

IPO's Weaknesses

• Their ability to expand its existing distribution network.

•  Changes in Segment Contribution to Revenue.

•  Few suppliers with unclear agreements create risks.

•  Ongoing legal proceedings can harm the business.

 

IPO GMP Today

The Latest GMP of Italian Edibles Limited IPO is Rs.12.

 

Conclusion

Italian Edibles Limited, established in 2009, is set to launch its IPO from February 2, 2024, to February 7, 2024. The company, known for its diverse confectionery products under the OfCour's brand, has demonstrated positive financials and a robust market presence. With a focus on quality, a well-established distribution network, and an experienced management team, the IPO is priced attractively at Rs. 68 per share. The company's financial performance, product diversification, and market reputation position it favourably for potential investors.

 

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.

 

 

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