Madhusudan Masala Limited IPO - Review, Valuation & GMP Today

Madhusudan Masala Limited - Complete Overview

Madhusudan Masala Limited specializes in the manufacturing and processing of over 32 varieties of spices sold under the well-known brand names "DOUBLE HATHI" and "MAHARAJA." 

Additionally, the company offers a range of other grocery products, including whole spices, tea, and items such as Rajgira flour, Papad, Soya Products, Asafoetida (Hing), Achar masala (Ready to make pickle powder), Sanchar (Black salt powder), Sindhalu (Rock salt powder), Katlu powder (Food supplement), Kasuri Methi (Dry fenugreek), all branded as "DOUBLE HATHI."

Madhusudan Masala's spice collection encompasses two main categories:
(i) Ground spices, which feature a variety of Chilli Powder, Turmeric Powder, Coriander Powder, and Coriander Cumin Powder.
(ii) Blend spices, including Garam Masala, Tea Masala, Chhole Masala, Sambhar Masala, Pav Bhaji Masala, Pani Puri Masala, Sabji Masala, Kitchen King Masala, Chicken Masala, Meat Masala, Chatpata Chat Masala, Butter Milk Masala, Chewda Masala, Dry Ginger Powder (Sunth), Black Pepper Powder (Mari), Dry Mango Powder (Aamchur), and more.

The company has gained prominence as a manufacturer of 13 different types of chilli powder, offering a total of 78 SKUs, effectively catering to a wide range of customer preferences within the industry. The company's manufacturing facility is situated in Jamnagar, Gujarat.

Madhusudan Masala's manufacturing facilities hold accreditations such as ISO 9001:2015 for quality management, ISO 22000:2018 for Food Safety Management System, and HACCP for Hazard Analysis Critical Control Points. Additionally, the company holds an FSSAI license under the Food Safety and Standards Act of 2006.

In the fiscal year 2023, the company achieved a revenue of 12,721.60 Lacs.

 

 

What does the company do?

Madhusudan Masala Limited is engaged in the business of manufacturing and processing more than 32 types of Spices under the brand names “DOUBLE HATHI” and “MAHARAJA”.

 

Company Products 

Madhusudan Masala's spice collection encompasses two main categories:

(i) Ground spices which comprise various varieties of Chilli Powder, Turmeric Powder, Coriander Powder and Coriander Cumin Powder.

(ii) Blend spices which comprise of Garam Masala, Tea Masala, Chhole Masala, Sambhar Masala, Pav Bhaji Masala, Pani Puri Masala, Sabji Masala, Kitchen King Masala, Chicken Masala, Meat Masala, Chatpata Chat Masala, Butter Milk Masala, Chewda Masala, Dry Ginger Powder (Sunth), Black Pepper Powder (Mari), Dry Mango Powder (Aamchur) etc.

 

IPO Overview

The Madhusudan Masala IPO date is scheduled from September 18, 2023, to September 21, 2023. The company aims to secure Rs. 23.80 Crores in funding through this upcoming SME IPO.

The Madhusudan Masala IPO price is established within the range of Rs. 66 to Rs. 70 per share, with a face value of Rs. 10 per share. This offering is structured as a book-built issue.

A single lot of shares comprises 2000 shares, and retail investors have the opportunity to bid for a maximum of 1 lot.

 

Madhusudan Masala Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	18 September 2023
IPO Closing Date	21 September 2023
IPO Allotment Date	26 September 2023
Refund initiation	27 September 2023
IPO Listing Date	3 October 2023

 

Madhusudan Masala Limited IPO Details 

IPO Opening & Closing Date	18 September to 21 September 2023
Face value	Rs.10 per share
Issue Price	Rs. 66 to Rs. 70 per share
Lot Size	2000 Shares
Price of 1 lot	Rs.140,000
Issue Size	3,400,000 Shares (aggregating up to Rs. 23.80 Cr)
Offer for sale	NA
Fresh issue	3,400,000 Shares (aggregating up to Rs. 23.80 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

Madhusudan Masala Limited IPO Lot Details

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

 

Madhusudan Masala Limited IPO Reservation

Institutional Share Portion	50%
Non-Institutional share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	2599.90	3514.29	5736.52
Total Revenue	6875.18	6651.81	12750.57
PAT	44.98	81.29	575.89
Net Worth	1094.09	31.07	1099.10
Reserve & Surplus	-	30.07	599.10
Total Borrowings	966.40	2819.53	4217.20

 

Objective of the Issue 

The raised funds will be utilized to achieve the following objectives:

• Meeting working capital needs.
• Addressing general corporate purposes.

 

Promoters and Management of Madhusudan Masala Limited

The Promoters of the Company included Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha, Hiren Vijaykumar Kotecha, Foram Rishit Kotecha and Mayuri Hiren Kotecha.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.64%

 

Peer Comparison

Here are the company's listed peers:

Company Name	EPS	PE	Total Income (Rs. In Lakhs)
Madhusudan Masala Limited	6.94	-	12,750.57
NHC Food Limited	1.48	34.25	16,411.34

 

IPO's Valuations

To assess the IPO valuation, we can utilize the information provided in the Madhusudan Masala IPO DRHP. The Madhusudan Masala IPO price range is Rs. 66 to Rs. 70 per share, and the company's EPS is Rs. 6.94. Considering the upper price band of the IPO, the company's P/E ratio is approximately 10.

 

Dividend Policy 

The company has not distributed dividends in the past, and there is no assurance of any dividend declarations in the future.

 

IPO's Strengths 

• The company boasts a well-established brand name with a heritage and legacy spanning more than four decades.
• It is known for its unwavering commitment to quality.
• The company enjoys robust and enduring customer relationships.
• With a diverse product portfolio, the company offers an extensive range of products.
• The company maintains its own in-house manufacturing facility.

 

IPO Weaknesses

• The company operates in a competitive market.
• It heavily relies on the sale of chilli and chilli powder.
• The markets where the company competes are marked by ever-changing consumer preferences.
• A significant portion of the company's revenue is derived from specific regions within Gujarat.
• The company has faced negative cash flows from operations recently.
• Competitive pricing pressures from rivals could impact the company's ability to maintain or raise product prices, potentially leading to declines in revenue, gross margins, and profitability.
• The Company, its Promoters, and its Directors are currently involved in certain legal proceedings and potential litigations.
• As part of regular business operations, the company need to secure approvals from relevant statutory and regulatory authorities.

 

 

IPO GMP Today

Latest GMP of Madhusudan Masala SME IPO is Rs. 60.

 

Conclusion

Madhusudan Masala Limited is a recognized brand with a robust customer base, offering a diverse product range and is known for its consistent quality. Nevertheless, the company operates in a fiercely competitive sector and has faced negative cash flows in the past. To achieve a favourable outcome, investors are encouraged to apply for this IPO after conducting a thorough analysis.
 

 

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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