What You Must Know About Gajanand International IPO: Price ₹36 Per Share

Founded in 2009, Gajanand International Limited, formerly known as Gajanand Cottex Private Limited, produces contamination-free and sustainable cotton. The company operates a manufacturing infrastructure with a factory that produces high-quality cotton products. Gajanand International aims to provide a satisfying experience through its offerings and is known for its customer service. The company has established its foothold in the competitive market since its inception, offering its cotton range to clients at affordable costs.

Gajanand International's product portfolio includes Mech1 cotton, grown in Madhya Pradesh and Maharashtra, sown in June/July and harvested from November to January; Shankar6 cotton, the most exported raw cotton variety in India; DCH 32 cotton, sown in July-August and harvested from December to March in Karnataka, Tamil Nadu, and Madhya Pradesh; and Khol, made from high-quality and pure cotton seeds. The company boasts an installed capacity of 37,500 MT/year and benefits from location advantages, including nearby raw material harvesting, easy availability, and readily available transportation. Gajanand International has improved its ability to adapt quickly to changing market demand by expanding its operations and diversifying its product offering. As of 31st March 2024, the company had 22 employees.

The Objectives of the Issue

Gajanand International Limited intends to utilise the funds being raised towards the following objectives:

1. Working Capital: To meet the working capital requirements of the Company.
2. General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.
3. Issue Expenses: To cover the costs associated with the IPO process.

Highlights of Gajanand International IPO

Gajanand International IPO is set to launch with a fixed price issue of ₹20.65 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 9th September 2024 and closes on 11th September 2024.
• The allotment is expected to be finalised on 12th September 2024.
• Refunds will be initiated on 13th September 2024.
• Credit of shares to Demat accounts is also expected on 13th September 2024.
• The company will tentatively list on NSE SME on 16th September 2024.
• The price is fixed at ₹36 per share.
• The fresh issue comprises 57.36 lakh shares, aggregating to ₹20.65 crores.
• The minimum lot size for the application is 3000 shares.
• Retail investors need to invest a minimum of ₹108,000.
• The minimum investment for HNI is 2 lots (6,000 shares), amounting to ₹216,000.
• Fast Track Finsec Pvt Ltd is the book-running lead manager for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.
• Nikunj Stock Brokers is the market maker responsible for 288,000 shares.

Gajanand International IPO: Key Details

The cut-off time for UPI mandate confirmation is 5:00 PM on 11th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.
 

Gajanand International IPO Issue Details/Capital History

The Gajanand International IPO is scheduled from 9th September to 11th September 2024, with a fixed price of ₹36 per share and a face value of ₹10. The total issue size is 5,736,000 shares, raising up to ₹20.65 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 13,099,568 pre-issue to 18,835,568 post-issue. Nikunj Stock Brokers is the market maker responsible for 288,000 shares within the issue.
 

Gajanand International IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 3000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.
 

SWOT Analysis: Gajanand International Ltd

Strengths:

• Installed Capacity of 37,500 MT / Annum
• Location advantage with nearby raw material availability and transportation facilities
• Increasing business scalability and captive consumption

Weaknesses:

• Seasonal availability of products and raw material consumption
• Dependency on suppliers for product availability

Opportunities:

• Potential for growth in the cotton industry
• Increasing demands domestically and internationally
• Government initiatives supporting the growth of the textile industry

Threats:

• Increasing market competition
• Fluctuations in market trends and demands

Financial Highlights: Gajanand International Ltd

Below are the financial results for the period ended 30th November 2023, and the Fiscal years FY23, FY22, and FY21:
 

Gajanand International Limited has shown strong financial growth over the past few years, with a particularly significant improvement in the most recent period. The company's assets have increased substantially from ₹1,942.64 lakhs in FY21 to ₹3,748.77 lakhs as of 30th November 2023, representing a growth of about 93%. This asset increase indicates significant expansion in the company's operational capabilities and infrastructure.

Revenue has shown consistent growth, rising from ₹5,846.56 lakhs in FY21 to ₹7,342.4 lakhs in FY23, marking a solid growth of 25.6% over two years. The revenue for the eight months ended 30th November 2023 stands at ₹4,660.41 lakhs, which is already 63.5% of the previous full year's revenue, suggesting continued strong performance.9

The company's profitability has seen a remarkable upward trajectory, especially recently. Profit after tax rose significantly from ₹0.99 lakhs in FY21 to ₹141.06 lakhs in FY23 and further to ₹199.29 lakhs for the eight months ended 30th November 2023. This represents an extraordinary improvement in the company's ability to generate profits.

Net worth has shown substantial growth, increasing from ₹403.72 lakhs in FY21 to ₹1,746.91 lakhs as of 30th November 2023, a growth of about 332.7%. This significant increase in net worth reflects the company's ability to generate and retain earnings, strengthening its financial position.
Notably, total borrowings have decreased from ₹441.77 lakhs in FY21 to ₹80.04 lakhs as of November 30, 2023, indicating improved financial health and reduced reliance on external debt.