What You Must Know About Jeyyam Global Foods IPO: Price Band ₹59 to ₹61 Per Share

Established in 2008, Jeyyam Global Foods Limited, formerly known as Kichoni Online Services Private Limited, produces and/or processes Bengali chickpeas (locally known as 'chana'), Fried Gram, and Besan Flour and supplies these to a variety of markets such as distributors, large retailers, hotels, restaurants, caterers, branded supermarkets and wholesalers.

The company has obtained an FSSAI license for its two factory locations Ammalamudugu and Devattipatti and ensures that ISO 9001:2015 and ISO 22000:2018 standards are maintained at both factory locations and has obtained ISO certification for the Salem factory. As of 31st March 2024, the company had 155 permanent employees.

Jeyyam's product portfolio includes:

• Jeyyam fried gram (split), Jeyyam fried gram (whole), Standard fried gram (split) and Standard fried gram (whole)
• Jeyyam gram flour
• Leader gram flour and Ponni gram flour

The Objective of the Issue 

The company proposes to utilise the funds towards the funding of the following objectives:

• Working Capital Requirements
• Capital Expenditures
• General Corporate Purposes

Highlights of the Jeyyam Global Foods IPO: 

• Jeyyam Global Foods Limited is launching its IPO in the NSE SME segment. Here are the key details of the IPO: 
• The issue opens for subscription on 2nd September 2024 and closes on 4th September 2024. 
• Jeyyam Global Foods IPO shares have a face value of ₹5 per share. 
• This is a book-built issue with the price band set at ₹59 to ₹61 per share. 
• The IPO consists of a fresh issue component of 12,088,800 shares and an offer for sale (OFS) portion of 1,343,200 shares. 
• The company will issue 13,432,000 shares, which amounts to a fresh fundraising of ₹81.94 crore. 
• The issue includes a market-making portion with an allocation of 672,000 shares. 
• Nnm Securities will serve as the market maker for the issue. 
• The promoter holding in the company currently stands at 92.00%. 
• The company will use the funds raised from the fresh issue for working capital requirements, capital expenditures, and general corporate purposes. 
• Corpwis Advisors Private Limited is the book-running lead manager for the issue, and Kfin Technologies Limited is the registrar.

Jeyyam Global Foods IPO: Key Dates

The Jeyyam Global Foods IPO opens on Monday, 2nd September 2024 and closes on Wednesday, 4th September 2024. The bid dates are from 2nd September 2024, at 10:00 AM to 4th September 2024, at 5:00 PM. The cut-off time for UPI mandate confirmation is 5 PM on the issue closing day, 4th September 2024.

Jeyyam Global Foods IPO Issue Details/ Capital History 

Jeyyam Global Foods IPO is set to raise ₹81.94 crore through Initial Public Offering (IPO). The issue comprises 13,432,000 equity shares with a face value of ₹5 each, priced between ₹59 and ₹61 per share. The Jeyyam Global Foods IPO will open for subscription on 2nd September 2024 and close on 4th September 2024. Investors can apply for a minimum of 2,000 shares. The company's shares will be listed on the NSE SME platform post-issue. Corpwis Advisors Private Limited is the book running lead manager, while Kfin Technologies Limited is the registrar. Nnm Securities will participate as a market maker, subscribing to 672,000 shares.

IPO Allocation and minimum investment lot size 

Jeyyam Global Foods IPO has announced the market maker allocation at 672,000 shares as inventory for market making. Nnm Securities will serve as the market maker for the IPO. The breakdown of the overall IPO allocation to various categories is as follows:

The minimum lot size for IPO investment is 2,000 shares. Retail investors can invest a minimum of ₹122,000 (2,000 x ₹61 per share at the upper price band) in the IPO. This is also the maximum that retail investors can invest. HNI/NII investors can invest a minimum of 2 lots, comprising 4,000 shares with a minimum lot value of ₹244,000. The table below shows the break-up of lot sizes for different categories:

SWOT Analysis: Jeyyam Global Foods Limited

Strengths:

• Established presence in the chickpea and gram flour market FSSAI licensed and ISO certified manufacturing facilities 
• Diverse product portfolio catering to various market segments 
• Experienced management team

Weaknesses:

• Concentration in specific product categories 
• Potential dependency on key raw materials 
• Regional market focus

Opportunities:

• Growing demand for packaged food products in India 
• Potential for expansion into new geographical markets 
• Increasing health consciousness driving demand for nutritious food options

Threats:

• Fluctuations in raw material prices Intense competition in the food processing industry Regulatory changes affecting food safety standards

Financial Highlights: Jeyyam Global Foods IPO

The table below presents the key financials of Jeyyam Global Foods Limited for recent periods:

 
Jeyyam Global Foods Limited has shown significant growth in its revenue from operations, increasing from ₹25,388.3 Lakhs in FY2022 to ₹38,220.62 Lakhs in FY2023 and further to ₹62,983.42 Lakhs in FY2024. This represents a remarkable year-on-year growth trajectory of 50.54% from FY2022 to FY2023 and 64.79% from FY2023 to FY2024.
The company's Profit After Tax (PAT) has also shown substantial improvement, rising from ₹436.8 Lakhs in FY2022 to ₹786.8 Lakhs in FY2023 and reaching ₹1,509.11 Lakhs in FY2024. This translates to an impressive PAT growth of 80.13% from FY2022 to FY2023 and 91.81% from FY2023 to FY2024.

The Net Worth of the company has consistently increased, from ₹5,726.51 Lakhs in FY2022 to ₹6,513.6 Lakhs in FY2023 and further to ₹8,022.42 Lakhs in FY2024, indicating a strengthening financial position.

The company's Total Borrowing has increased from ₹3,319.3 Lakhs in FY2022 to ₹9,226.05 Lakhs in FY2023 and further to ₹9,620.5 Lakhs in FY2024, suggesting increased leverage to support growth. However, the Debt-Equity ratio has improved from 1.42 in FY2023 to 1.2 in FY2024, indicating better management of the increased debt.