The company Goyal Salt Limited is coming up with an IPO of INR 18.63 crores. The offer consists of a fresh issue of equity shares. The company intends to utilize the raised funds towards brand creation, marketing, quality enhancement, and meeting the working capital requirements of the company.
Goyal Salt Limited IPO – Important Details
|Goyal Salt IPO Date||September 26, 2023, to October 3, 2023.|
|Goyal Salt IPO Listing Date||October 10, 2023|
|Goyal Salt IPO Price||INR 36-38 per share|
|Goyal Salt IPO Lot Size||3000 Shares|
|Goyal Salt IPO Total Issue Size||INR 18.63 crores|
|Goyal Salt IPO Basis of Allotment||October 5, 2023|
|Goyal Salt IPO Initiation of Refunds||October 6, 2023|
|Goyal Salt IPO Credit of Shares to Demat||October 9, 2023|
|Goyal Salt IPO Issue Type||Book Built Issue IPO|
|Goyal Salt IPO Listing At||NSE SME|
Goyal Salt IPO – Company Profile
The company is primarily engaged in the business of refining of raw salts procured from sub soil brine in the state of Rajasthan for useable as industrial salts and edible salts. The company refines and supplies a pure, refined, and quality range of triple-refined free-flow iodized salt, industrial salt, double-fortified salt, and triple-refined half-dry salt.
The Company is managed by the promoters and directors, Mr. Rajesh Goyal, Mr. Pramesh Goyal, and Mr. Lokesh Goyal having rich experience and exposure of about 20 years in the salt industry.
The company’s revenue breakdown is based solely on domestic sales. It is not engaged in any export activities.It is important to highlight that while the current revenue sources are limited to domestic sales, the company has future intentions to expand operations into exporting the products.
Goyal Salt Ltd IPO – Fundamental Analysis
The company has shown consistent revenue growth, increasing from ₹6,005.30 lakhs in 2021 to ₹11,764.19 lakhs in 2023. This indicates a positive trend in top-line performance.
Although the company experienced losses in 2021 and 2022, it turned profitable in 2023 with a profit of ₹353.74 lakhs. This suggests the potential for generating profits.
Return on Net Worth (RoNW):
RoNW has shown significant improvement, rising from 6.08% in 2021 to 21.86% in 2023. It reflects the company’s efficiency in utilizing equity for profitability.
Earnings Per Share (EPS):
Diluted EPS increased from ₹0.52 in 2021 to ₹2.72 in 2023, indicating improved earnings on a per-share basis.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has shown an increase, although it is relatively lower at ₹14.94 in 2023.
Asset and Liability Management:
Total assets have been growing steadily, while liabilities have increased at a manageable rate. This indicates a balanced financial structure.
The company has managed expenses well, growing at a slower pace compared to revenue.
The company’s financials reflect improving profitability and revenue growth. However, it’s essential to consider the past losses and the relatively low NAV. Investors should conduct a thorough assessment and consult with a financial advisor before making an investment decision.
Goyal Salt Limited IPO Financial Information
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Revenue (₹ in lakhs)||6005.30||6611.09||11764.19|
|Equity (₹ in lakhs)||1121.57||1169.12||1618.11|
|Expenses (₹ in lakhs)||5919.88||6506.53||11285.92|
|Profit and Loss After Tax (₹ in lakhs)||68.15||62.75||353.74|
|Diluted EPS only (₹)||0.52||0.48||2.72|
|NAV per Equity Share (₹)||56.20||58.58||14.94|
|Total Assets (in lakhs)||2745.93||2733.41||3000.94|
|Total Liabilities (in lakhs)||1624.36||1564.29||1382.83|
Goyal Salt IPO Peer Comparison
Goyal Salt lags in total revenue and earnings per share (EPS) compared to its peer, Saboo Sodium Chloro. However, Goyal Salt exhibits a higher return on net worth (RoNW). Investors should consider these factors when evaluating the IPO.
|Company||Total Revenue (₹ in lakhs)||Face Value per Equity Share (₹)||P/E||EPS (Basic) (₹)||EPS (Diluted) (₹)||RoNW (%)||NAV per Equity Share (Basic) (₹)|
|Goyal Salt Limited||11,764.19||10||NA||2.72||2.72||21.86%||14.94|
|Saboo Sodium Chloro Limited||4,935.61||10||816.50||0.02||0.02||0.19%||11.03|
Goyal Salt IPO Objective
Goyal Salt’s IPO objectives include allocating INR 10.67 crores for working capital, INR 1.06 crores for branding and marketing, and INR 1.13 crores for quality enhancement through color sorting machines.
- Funding working capital requirement: The company requires additional working capital to fund future growth requirements of the company and for other business purposes. The company plans to utilize INR 10.67 crores for the said purpose.
- To meet branding and marketing expenses: The company proposes to utilize Rs. 1.06 crores towards the brand creation and marketing expenses segment to strengthen the company’s brand identity and expand its market presence.
- To meet quality enhancement expenditure: The company proposes to utilize an estimated amount of up to Rs. 1.13 crores from the net proceeds towards capital expenditure on the acquisition of color sorting machines and its allied components to enhance the quality of its products strategically.
Goyal Salt Ltd IPO Risks And Challenges
Goyal Salt heavily relies on its salt refining process with significant annual losses. Dependence on top customers and intense industry competition further adds risks to its financial performance and operations.
- The refining of the salt process has 25.86%, 24.30%, and 20.48% process loss during the year ending on March 31, 2023, 2022 and 2021. Any further increase in process loss will have severe effects on the operational costs, profit margins, and financial performance.
- The company derives 68.47% of the revenue from the top 10 customers during the fiscal ending on March 31, 2023. If one or more of such customers choose not to source their requirements from the company, the business, financial condition, and operation result may be adversely affected.
- The industry in which the company operates has many big players, so the company faces a lot of competition from them. This may affect the business’s operational and financial conditions.
Goyal Salt Ltd IPO – Industry & Market Potential
Salt, a crucial element of life, is manufactured as a seasoning for human consumption as well as used in chemical industries. The most prominent use for salt is as a feedstock for the production of industrial chemicals. The worldwide market for salt production was valued at over 29 billion U.S. dollars in 2021, with 290 million metric tons of salt produced that year. China, the United States, and India are the top three countries for salt production.
India is the third largest Salt producing Country in the World after China and USA with Global annual production being about 230 million tonnes. The growth and achievement of Salt Industry over the last 60 years has been spectacular.
In the last five years more than 15 Salt Washing plants have come up to meet requirements for high purity salt.
- Export Market- 1) Quatar 2) Malaysia 3) Philippines 4) Japan 5) China 6) Vietnam 7) Indonesia 8) Nepal
- India’s location is very suitable for supplying salt to China, Japan, the Middle East, and to other Asian countries.
- India has the potential to increase productivity as well as quality.
- Available manpower.
Goyal Salt Limited IPO – Type of Offer
The company Goyal Salt Limited is coming up with an IPO of INR 18.63 crores. The offer consists of a fresh issue of equity shares at a price band of INR 36-38 per share.
Goyal Salt IPO Offer Size
Goyal Salt Limited plans to launch an INR 18.63 crore IPO, primarily comprising a new issuance of equity shares. The company aims to use the proceeds to strengthen its brand, enhance marketing efforts, improve product quality, and fulfill working capital needs.
Goyal Salt Limited IPO Allotment Structure
The IPO allocation structure designates 48.16% for Qualified Institutional Buyers (QIBs), 15.97% for Non-Institutional Investors (NIIs), 35.87% for Retail Individual Investors (RIIs), 5.02% for Market Makers, and 1.84% for Eligible Employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 48.16% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15.97% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35.87% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
● Market Maker Reservation: Total of 2,46,000 equity shares are reserved for market makers. This forms 5.02% of the total issue.
● Eligible Employees: Total of 90,000 equity shares are reserved for market makers. This forms 1.84% of the total issue.
How to apply for a Goyal Salt Limited IPO?
To apply for the Goyal Salt IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Goyal Salt IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Goyal Salt IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Goyal Salt IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Goyal Salt IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Goyal Salt IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Goyal Salt IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Goyal Salt IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Goyal Salt IPO Offer Registrar
The registrar for the Goyal Salt Limited’s IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6 – 2, 6th Floor, Pinnacle Business Park,
Mahakali Cave Road, Andheri – [East], Mumbai – 400093,
Tel No.: +91 22 6263 8200
Email: [email protected]
Goyal Salt Limited IPO FAQs
1. What is the allotment date of the Goyal Salt Limited IPO?
The allotment date is 5th October 2023.
2. What is the price band of the Goyal Salt Limited IPO?
The price band is INR 36-38 per share.
3. What is the size of the Goyal Salt Limited IPO?
Goyal Salt Limited plans to launch an INR 18.63 crores IPO, primarily comprising a new issuance of equity shares. The company aims to use the proceeds to strengthen its brand, enhance marketing efforts, improve product quality, and fulfill working capital needs.
4. What is the listing date of the Goyal Salt Limited IPO?
The listing date is October 10, 2023.