Jay Kailash Namkeen Ltd. IPO: Review, Valuation & GMP

Jay Kailash Namkeen Limited IPO  - Complete Overview

Established in June 2021, Jay Kailash Namkeen Limited specializes in the production of packaged Indian snacks. 

Their diverse range of offerings includes Chana Jor Namkeen, Masala Chana Jor, Pudina Chana, Masala Mung Jor, Plain Mung Jor, Soya Sticks, Haldi Chanas, Chana dal, Sev Murmura, Garlic Sev Murmura, Bhavnagari Gathiya, Chana Dal, Sing Bhujia, Popcorn, Roasted Peanuts, and more. 

With a total of 186 SKUs across 56 different products, the company caters to various consumer preferences and budgets, offering pack sizes ranging from ₹5 to 20 Kgs.

Jay Kailash Namkeen operates primarily in the states of Assam, Bihar, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, and Uttar Pradesh. Their production facility, situated in Rajkot, Gujarat, has a production capacity of 10 tonnes per working day, enabling them to meet the demands of their diverse customer base efficiently.

Jay Kailash Namkeen Limited IPO Overview

Jay Kailash Namkeen Limited IPO date is slated to be open for subscription from March 28, 2024, to April 3, 2024. This BSE SME IPO follows a Book Built Issue IPO.

Jay Kailash Namkeen LimitedIPO price is fixed in the range of Rs.70 to Rs.73 per share. 

The total issue size of this IPO amounts to Rs.11.93 Cr. The company has allocated shares 50% to retail investors, 30% to institutional and 20% to non-instituional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Jay Kailash Namkeen Limited has seen growth in total assets and net worth but decreased in total revenue. The profit after tax and total borrowing have increased.

(Amount in Lakhs)

Period	30 Nov 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,118.30	671.19	613.46
Total Revenue	646.19	987.74	1,043.12
PAT	40.45	88.79	54.57
Net worth	582.45	359.21	83.20
Reserve & Surplus	246.12	65.88	49.42
Total Borrowings	354.67	238.44	65.76

 

Revenue on the product mix of the company

(Amount in lakhs)

Category of Products	November 30, 2023	31 Mar 2023	31 Mar 2022
All types of Chana Jor	631.11	933.84	1,016.27
All types of Mung Jor	1.8	11.88	1.69
Other Products	6.88	34.27	25.16

 

State-wise Revenue Break up

(Amount in Lakhs)

	March 31, 2022		March 31, 2023		November 30, 2023
State	B2B Sales	B2C Sales	B2B  Sales	B2C  Sales	B2B  Sales	B2C Sales
Andhra Pradesh	-	-	-	-	-	-
Assam	1.31	-	5.41	-	3.82	-
Bihar	14.32	-	1.56	-	0.64	-
Chhattisgarh	-	-	-	-	-	-
Delhi	0.1	-	-	-	-	-
Gujarat	314.2 2	-	101.6 1	229.97	133.33	131.52
Karnataka	-	-	-	-	-	-
Madhya Pradesh	82.46	-	140.58	-	66.47	-
Maharashtra	51.24	-	21.48	-	8016	-
Odisha	-	-	5.27	-	2.29	-
Rajasthan	561.9	-	468.31	-	290.51	-
Telangana	7.54	-	5.96	-	3.04	-
Uttar Pradesh	6.16	-	-	-	-	-
West Bengal	-	-	-	-	-	-
Total	1,043 .13	-	750.0 2	229.97	508.26	131.52

 

 

Customer-wise revenue break-up

(Amount in Lakhs)

Particular	November 30, 2023	March 31, 2023	March 31, 2022
Top 1 customers	231.77	449.79	501.78
Top 5 customers	411.87	684.07	817.91
Top 10 customers	426.36	715.96	915.35

 

The Objective of the Issue

The objectives of the issue are as follows:

1. To meet the working capital requirement

2. General corporate purpose

Peers of Jay Kailash Namkeen Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Jay Kailash Namkeen Limited	10	3.03	-
Annapurna Swadisht Limited	10	4.35	44.24
Prataap Snacks Ltd	5	8.51	86.55

 

Evaluation

The IPO is priced within the range of Rs.70 to Rs.73 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 3.03 from the last year, the resulting P/E ratio is 24.09x.

• Taking into account the weighted EPS of Rs 2,66 for the last three years, the P/E ratio amounts to 27.44x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 65.40x.

As a result, the IPO price range, with a P/E ratio ranging from 24.09x to 27.44x, seems fully priced to the industry average of 65.40x.

 

 

 

IPO's Strengths 

• Varied range of products in the portfolio.

• Established connections with current clients.

• Packaging of products.

• Assurance of quality standards.

IPO weaknesses 

• The company's limited operating history exposes it to risks typical of early-stage ventures.

• Promotion of the company is spearheaded by a first-generation entrepreneur.

• Compliance with strict food safety and health regulations may lead to higher liabilities and capital spending.

• The company must regularly secure and renew various registrations, licenses, approvals, NOCs, and permits as part of its normal operations.

• Competition from organized and unorganised entities poses a potential threat to the company's business.
  
  

IPO GMP Today

The latest GMP of Jay Kailash Namkeen Limited is Rs.12.

Jay Kailash Namkeen Limited IPO timetable (Tentative)

Jay Kailash Namkeen Limited IPO is scheduled from March 28 to April 3, 2024, with allotment on April 4, refund initiation on April 5, and listing on April 8, 2024.

Events	Date
IPO Opening Date	March 28, 2024
IPO Closing Date	April 3, 2024
IPO Allotment Date	April 4, 2024
Refund initiation	April 5, 2024
IPO Listing Date	April 8, 2024

Jay Kailash Namkeen Limited IPO Details 

Jay Kailash Namkeen Limited IPO, with a face value of Rs.10 per share, opens on March 28 and closes on April 3, 2024, offering 1,633,600  shares at Rs.70 to Rs. 73 per share, with a lot size of 1600 shares, aiming to raise Rs.11.93 Cr, and will be listed on BSE SME.

IPO opening & closing date	March 28, 2024 to April 3, 2024
Face value	₹10 per share
Issue Price	₹70 to ₹73 per share
Lot Size	1600 Shares
Price of 1 lot	₹116,800
Issue Size	1,633,600 shares (aggregating up to ₹11.93 Cr)
Fresh issue	1,633,600 shares (aggregating up to ₹11.93 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

Jay Kailash Namkeen Limited IPO Lot Details 

For Jay Kailash Namkeen Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.116,800 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.233,600.

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

 

 

Jay Kailash Namkeen Limited IPO Reservation 

Institutional share Portion	30%
Non-institutional share Portion	20%
Retail share Portion	50%

Promoters and Management of Jay Kailash Namkeen Limited

• Mr. Neel Narendrabhai Pujara 

• Ms. Tulsi Neel Pujara.

Pre-issue Promoter shareholding	71.82%
Post-issue Promoter shareholding	48.33%

 

Jay Kailash Namkeen Limited IPO Lead Managers

• Expert Global Consultants Private Limited 
  
  

Dividend Policy

The company has not distributed any dividends in recent fiscal years, and future dividend payments hinge on the financial performance of the company.

 

 

Conclusion

Jay Kailash Namkeen Limited is an Indian snack brand operating within a highly competitive and fragmented sector. With a limited operating history and financial performance that may not be entirely satisfactory, investors are advised to carefully analyze all factors before considering participation in the upcoming IPO.

 

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.

 

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

 

 

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.