Jeyyam Global Foods Ltd IPO: Review, Valuation, Date & GMP

Jeyyam Global Foods IPO-Complete Overview

Jeyyam Global Foods IPO an SME IPO is a book built issue of Rs.81.94 crore by Jeyyam Global Foods Pvt Ltd. formerly Kichoni Online Services Private Limited which was founded in 2008. The company produces or processes Bengali chickpeas, also known as "Chana" in the region, Fried Gram, and Besan Flour. It sells these products to a range of customers, including wholesalers, distributors, big-box stores, hotels, restaurants, caterers, and branded supermarkets.

Jeyyam Global Foods owner is Managing Director Mr. Amit Agarwal besides Mr. Shripal Veeramchand Sanghvi, Mr. Chinnaponnu Devarajan, and Ritika Agarwal are other key personnel of the company.

Jeyyam Global Foods guarantees that ISO 9001:2015 and ISO 22000:2018 standards are maintained at both production locations. It has also got ISO certification for the Salem facility. The company has an FSSAI license for its two factory locations, Ammalamudugu and Devattipatti.

Among Jeyyam's product portfolios are:

• Standard fried gram (split), Standard fried gram (whole), and Jeyyam fried gram (chopped)

• Jeyyam grains flour

• Gram flours from Leader and Ponni.

This new SME IPO is to be launched on 02 September 2024, and its ‘initial public offering’ will end on 04 September 2024.

Jeyyam Global Foods IPO Overview

The Rs.81.94 crore Jeyyam Global Foods Pvt Ltd. IPO consists of a combination of a fresh issue of 120.89 lac Shares amounting to Rs.73.74 crore and an offer for sale (OFS) of 13.43 lac Shares totaling Rs.8.19 crore.

This SME IPO date is from September 02-September 04, 2024. The expected IPO listing date is Monday, September 09, 2024, on NSE and SME. Jeyyam Global Foods IPO price band is Rs.59 to Rs.61 for each Share.

To open a demat account and apply for the IPO, Click Here.

 

 

Company Financial

The company’s revenue grew by 65% and PAT increased by 92% 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.19,226.39 lac.

• The total revenue of the company is Rs.62,983.42 lac.

• The company’s PAT is Rs.1,509.11 lac.

• The net worth of the company is Rs.8,022.42 lac.

• The company’s EBITDA is Rs.3,292.30 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown

(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.

• Capital Expenditures.

• General corporate purposes.

Peers of Jeyyam Global Foods Ltd. 

Evaluation

Jeyyam Global Foods Share Price is Rs.59 to Rs.61 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.26 from the last year, the resulting P/E ratio is 14.32x.

Considering the weighted EPS of Rs.3.11 for the last three years, the P/E ratio is 19.64x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 9.80x.

In simple words, the P/E ratio of Jeyyam Global Foods IPO (14.32x) compared with the industry’s average P/E of 9.80x, has overvaluation. Hence the price seems aggressively priced based on the average P/E ratio of the industry.

Note: The P/E Ratio of the listed peer is as of August 20, 2024.

IPO's Strengths 

• There isn't a significant rival to this company that only makes Chana-related products.

• A part of the company's product sales are made through retail channels in addition to wholesalers.

• Jeyyam is eager to increase sales through more channels.

• Skilled team.

• Diverse Clientele in the B2B sector cutting-edge technologies client connections.

• Along with consistently doing research and development, the company has entered the B2C market for soy, vermicelli, spices, masala, ready-to-cook and ready-to-eat foods, salt, and sugar, among other products.

• Its current Deevattipatti, Salem production facility is being expanded to expand into the kitchen necessities market.

• A wide range of products and their distribution.

IPO’s Weaknesses

• Its revenue mostly comes from the sale of its products, which include chana and related goods. In FY 2024, FY 2023, and FY 2022, the total revenue from sales of chana and related goods made up 99%, 72%, and 96% of its operating revenue, respectively. The demand for its products, brand loyalty, and ultimately its business could be negatively impacted by the incapacity to predict and adjust to changing customer tastes and demand for specific products, or to guarantee product quality.

• Tamil Nadu and Karnataka, its primary markets, account for the majority of the products we sell. Any unfavorable events that affect its operations in that area could be detrimental to the company.

• Its distribution network is essential to its business. Any interruptions to its distribution network or an incapacity to grow or operate its distributor network efficiently could negatively affect the business operations.

• The company could suffer if it doesn’t adhere to applicable standards for food safety, the environment, and other matters concerning its manufacturing facilities.

• 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.

  

   

Jeyyam Global Foods IPO GMP Today

Jeyyam Global Foods IPO GMP is Rs.0 as of 30 August 2024.

IPO Timetable (Tentative)

The IPO date is from September 02 to September 04, 2024, with allotment on September 05, refund initiation on September 06, and listing on September 09, 2024.

 

Jeyyam Global Foods IPO Details 

The IPO with a Face Value of Rs.5 per Share is set to start on September 02, 2024, close on September 04, 2024, and offer a total issue size of 13,432,000 Shares (aggregating up to Rs.81.94 Cr.).

Jeyyam Global Foods IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,22,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,44,000.

 

Jeyyam Global Foods IPO Reservation

Promoters And Management of Jeyyam Global Foods Ltd.

• Mr. Shripal Veeramchand Sanghvi

• Mr. Amit Agarwal

• Mrs. Sujathaa Mehta

• Shanti Guru Industries Limited

• Mrs. Sarika Ssangavi

• M/s. Shripal Sanghvi HUF

• M/s. Mahipal Sanghvi HUF

IPO Lead Managers

• Corpwis Advisors Private Limited.

Dividend Policy

The company has no dividend distribution system.

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.

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: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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