GreenChef Appliances Ltd. IPO - Review, GMP & Valuation

GreenChef Appliances Limited IPO - Review, GMP & Valuation

GreenChef Appliances Limited fulfills the requirements for an SME Initial Public Offering (IPO), which enables privately owned small and medium enterprises to offer their shares to the public and become listed on the BSE SME or NSE Emerge platform. In India, companies with a post-issue capital ranging from Rs 1 crore to Rs 25 crores are eligible to participate in the SME IPO.

Established in 2010, GreenChef Appliances Limited has emerged as a leading company involved in the manufacturing and promotion of Kitchen Appliances. With a commitment to quality and innovation, GreenChef has successfully built a brand that resonates with consumers across India.

At the heart of GreenChef's product portfolio is a wide range of kitchen appliances designed to simplify the culinary experience. From gas stoves and pressure cookers to mixer grinders and wet grinders, GreenChef offers a wide selection of appliances that cater to the diverse needs of modern households. The company also excels in the manufacturing of Electric Rice Cookers, Induction Cooktops, Non-Stick Cookware like Tavas, Fry Pans, Kadai, Biryani Utensils, Tadka Pans, Paniyarakkal, Appamchetty, Kettles, Hose Pipe, Gas Cylinder Trolley and Spin Mops.

GreenChef takes a multi-channel approach to ensure the wide availability of its products. Customers can shop conveniently through both offline and online platforms, including trusted marketplaces like Flipkart India Pvt Ltd, JioMart, BigBasket and Amazon Seller Services Pvt Ltd.

Recognizing the importance of customer satisfaction, GreenChef goes beyond selling a product by offering exceptional after-sales services. The company's dedicated service team, consisting of 130 skilled technicians across 13 states, provides prompt repair, maintenance and installation services. In addition, GreenChef has appointed 107 authorized service providers across 15 states, thereby further expanding its service network.

To support its manufacturing operations, GreenChef operates four state-of-the-art facilities. While three of these facilities are located in Bengaluru, Karnataka, the fourth facility is located at Parwanoo in Himachal Pradesh. The Parwanoo facility specializes in the production of gas stoves and hose pipes. GreenChef has established strategic partnerships with reputed oil companies such as Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited, thereby increasing its marketing reach.

GreenChef has strengthened its supply chain by collaborating with five Carrying and Forwarding (C&F) agents in major states like Rajasthan, Maharashtra, Uttar Pradesh, Gujarat and Bihar. As of December 31, 2022, the company boasts of a wide network of approximately 450 distributors operating across 22 states and 3 union territories in India.

The journey of GreenChef Appliances Limited has been defined by its unwavering commitment to excellence, cutting-edge product offerings, comprehensive service network and strategic alliances. Continually striving to enhance the culinary experience of its customers, GreenChef continues to be a trusted and well-known name in the kitchen appliances industry.

 

What does the company do?

GreenChef Appliances Limited manufactures and markets a wide range of kitchen appliances including gas stoves, pressure cookers, mixer grinders and others under the brand name GreenChef. The company sells its products through both offline and online platforms and provides after-sales services, repairs and maintenance for its products.

 

Company Products

GreenChef Appliances Limited offers a wide range of kitchen appliances under the brand name GreenChef. Their product lineup includes gas stoves, pressure cookers, mixer grinders, wet grinders, electric rice cookers, induction cooktops, and non-stick cookware such as tawa, fry pans, kadai, biryani pots, tadka pans, paniyarakkal, appamchetty, as well as kettles. , Hose Pipe, Gas Cylinder Trolley, and Spin Mops. These appliances are designed to enhance the cooking experience and meet the diverse needs of households.

 

 

IPO Overview

Greenchef Appliances Limited IPO, open for subscription from June 23 to June 27, 2023, offers a fresh issue of 61,63,200 lakh shares. The price range for the book-built issue has been fixed at Rs 82 to Rs 87 per share with a face value of Rs 10 per share. The IPO does not have a share of QIB and consists entirely of fresh issue. Retail investors can invest a minimum of Rs 139,200, while HNI/NII investors can invest a minimum of 2 lots (3,200 shares). Promoter's stake, currently 100%, will come down to 73.52% post-IPO. Hem Finlease Limited is the Lead Manager, and Link Intime India Private Limited is the Registrar of the issue.

 

GreenChef Appliances Limited IPO timetable (Tentative Dates)

Events	Dates
IPO Opening Date	Friday, 23 June 2023
IPO Closing Date	Tuesday, 27 June 2023
IPO Allotment Date	Monday, 03 July 2023
Refund Initiation	Tuesday, 04 July 2023
Credit of Shares to Demat	Wednesday, 05 July 2023
Listing Date	Thursday, 06 July 2023

 

GreenChef Appliances Limited IPO Details

IPO opening & closing date	23 June 2023 to 27 June 2023
Listing Date	July 6, 2023
Face Value	Rs 10 per share
Price	Rs 82 to Rs 87 per share
Lot Size	1600 shares per lot
Total Issue Size	6,163,200 shares (aggregating up to Rs 53.62 Cr)
Fresh Issue	6,163,200 shares (aggregating up to Rs [.] Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share holding pre issue	17,108,640
Share holding post issue	23,271,840
Market Maker portion	312,000 shares

 

GreenChef Appliances Limited IPO Lot Details

The Greenchef Appliances IPO lot size is 1600 shares.

Application	Lots	Share	Amount
Retail (Min)	1	1600	Rs 139,200
Retail (Max)	1	1600	Rs 139,200
HNI (Min)	2	3200	Rs 278,400

 

GreenChef Appliances Limited IPO Reservation

QIB Shares Offered	Not more than 50.00% of the Net offer
NII (HNI) Shares Offered	Not less than 15.00% of the Offer
Retail Shares Offered	Not less than 35.00% of the Offer

 

Company Financials

Greenchef Appliances Limited Financial Information (Restated Consolidated) Amount in Lakhs

Period	31-Mar-2020	31-Mar-2021	31-Mar-2022
Total Assets	12562.89	14223.39	17953.59
Total Revenue	23807.17	23929.33	33704.52
Profit After Tax	117.26	257.10	82.09
Net Worth	4854.57	5093.27	5170.68
Reserve & Surplus	4498.14	4736.84	4814.25
Total Borrowing	3916.06	5182.39	6682.81

 

Objective of the Issue

The company's net proceeds from the IPO will be used for the following purposes:

1. Financing Capital Expenditure:
   • Installation of additional plant and machinery.
   • Construction of factory building.
2. To meet working capital requirements.
3. General Corporate Objectives:
   • Supporting overall business expansion.
   • Pursuing development opportunities.
   • Increase in operational capabilities

 

Promoters And Management of GreenChef Appliances Limited

Sukhlal Jain, aged 71, is a visionary entrepreneur and Promoter, Chairman and Whole Time Director of GreenChef Appliances Limited. With a remarkable experience of 51 years, he has been instrumental in the growth of the company since its inception. Sukhlal Jain completed his Secondary School Certification from Govt. Senior Secondary School, Todgarh, Ajmer in 1967-68. Praveen Kumar Sukhlal Jain, age 42, is the Promoter and Managing Director of the company. With an overall work experience of 20 years,

Praveen Kumar has been instrumental in taking forward the goals and vision of the organization. He completed his secondary school certification from Sarada Vidya Mandir, Bangalore in 1996-97 and focused on overseeing marketing and financial activities.

Vikas Kumar Sukhlal Jain, age 46, is the Promoter and Whole Time Director of GreenChef Appliances Limited. With nearly 22 years of work experience, Vikas Kumar joined the Board of Directors on January 17, 2018. He holds a Bachelor of Engineering (Computer Science). ) degree from Sir M. Visvesvaraya Institute of Technology, and his responsibilities within the company include management of production, raw material procurement and quality control activities.

Sukhlal Jain, Praveen Kumar Sukhlal Jain and Vikas Kumar Sukhlal Jain together form a dedicated and experienced team that drives the strategic planning, development and overall management of GreenChef Appliances Limited.

 

Peer Comparison

Name of the Company	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Greenchef Appliances Limited	13.6	5.85	14.9	87	202
TTK Prestige Limited	260	18.77	39.8	747	10355
Hawkins Cookers Limited	95	179.24	35.7	6,397	3,384
Stove Kraft Limited	36	10.83	41.2	446	1,474
Butterfly Gandhimathi Appliances Limited	52	28.9	40.7	1,177	2,105

 

IPO's Valuations

GreenChef Appliances IPO posted impressive earnings per share (EPS) of Rs 1.47 per equity share. However, the price/earnings (P/E) ratio is not specified in the information provided. The Return on Net Worth (RoNW) stands at 1.48%, which shows the profitability of the company to its net worth. In addition, the Net Asset Value (NAV) per equity share is Rs 30.22, which reflects the value of each share based on the net assets of the company.

 

 

IPO GMP

Date	GMP
20-June-2023	Rs 16
19-June-2023	Rs 16

 

Conclusion

GreenChef Appliances Limited has established itself as a leading player in the Kitchen Appliances industry. With a wide range of high-quality products and a strong presence online as well as offline, they have effectively met the demands of the clients. Their commitment to exceptional after-sales service backed by a dedicated team and authorized providers have built the trust of customers. Strategic manufacturing facilities, partnerships with oil companies, and a strong distribution network further strengthen their market position. GreenChef's dedication to innovation and customer satisfaction ensures a promising future in the industry.

 

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