Italian Edibles IPO - Review & Fundamental Analysis

Italian Edibles IPO

Italian Edibles’ IPO issue includes a fresh Issue of up to 39,20,000 equity shares of the company at INR 68 per share, totaling INR 2665.60 lakhs. The company intends to use the funds raised for manufacturing setup, debt repayment, working capital, and corporate expenses funding.

Italian Edibles Ltd IPO – Important Details

Italian Edibles IPO DateFebruary 2, 2024 to February 7, 2024
Italian Edibles IPO Listing DateFebruary 12, 2024
Italian Edibles IPO PriceINR 68 per share
Italian Edibles IPO Lot Size2000 Shares
Italian Edibles IPO Total Issue SizeINR 2665.60 lakhs
Italian Edibles IPO Basis of AllotmentFebruary 08, 2024
Italian Edibles IPO Initiation of RefundsFebruary 09, 2024
Italian Edibles IPO Credit of Shares to DematFebruary 09, 2024
Italian Edibles IPO Issue TypeFixed Price Issue
Italian Edibles IPO Listing AtNSE SME

Italian Edibles Limited IPO – Company Profile

Italian Edibles Limited, inspired by “Sharing is Everything” and “Delightful Creation and Boundless Joy,” has passionately produced mouthwatering confectionery for 14 years. Their specialties include candies, caramels, chocolates, processed cocoa, milk treats, and traditional Indian confections.

The brand provides a diverse confectionery range like Rabdi, Milk Paste, Lollipops, and more. With 450+ suppliers, 22 states, and five export partners, their certified units in Indore ensure quality and efficiency.

In 14 years, their confectionery brand has flourished, gaining strength in India and abroad. They’ve built a robust business model, distribution network, and brand recognition by understanding markets, innovating products, and ensuring stringent quality control.

Italian Edibles Ltd IPO – Fundamental Analysis

Italian Edibles Ltd.’s IPO financial analysis reveals fluctuating revenues, increasing equity and profitability, and improved financial stability. The report considers key metrics like RoNW, EPS, and NAV, offering insights for potential investors amid recent revenue decline concerns.

Revenue: 

The company’s revenue increased from ₹4,890.36 lakhs in 2021 to ₹7,541.15 lakhs in 2022 but then decreased to ₹6,321.20 lakhs in 2023. This indicates a fluctuation in sales, with a recent decline that needs further investigation.

Equity Growth: 

Equity has steadily increased from ₹583.82 lakhs in 2021 to ₹1,078.24 lakhs in 2023, suggesting a strengthening of the company’s financial position.

Expenses: 

Expenses closely mirror revenue trends, increasing in 2022 but decreasing in 2023. The company is managing its expenses in line with revenue, which is a positive sign.

Profit After Tax: 

There’s an increase in net profit, from ₹86.52 lakhs in 2021 to ₹264.21 lakhs in 2023. This indicates improved profitability over the three years.

Return on Net Worth (RoNW): 

RoNW shows a fluctuation, decreasing from 14.82% in 2021 to 9.85% in 2022 but then significantly increasing to 24.50% in 2023. The recent increase is a positive indicator of efficient equity usage.

Earnings Per Share (EPS): 

There’s a noticeable increase in EPS from ₹0.81 in 2021 to ₹2.43 in 2023, suggesting higher profitability per share.

Net Asset Value (NAV) per Equity Share: 

The NAV per share has consistently increased, indicating a growing intrinsic value of the company.

Total Assets and Liabilities: 

The company’s total assets have shown a slight increase over the years, and total liabilities have slightly decreased from 2021 to 2023, indicating a stable financial position.

Italian Edibles Ltd IPO Financial Information

ParticularAs at 31 March 2021As at 31 March 2022As at 31 March 2023
Revenue (₹ in lakhs)4,890.367,541.156,321.20
Equity (₹ in lakhs)583.82814.031,078.24
Expenses (₹ in Million)4,786.937,407.475,992.96
Profit and Loss After Tax (₹ in lakhs)86.5280.21264.21
RoNW (%)14.829.8524.50
Diluted EPS only (₹)0.810.752.43
NAV per Equity Share (₹)38.9247.4962.90
Total Assets (in lakhs)3,946.433,905.454,155.24
Total Liabilities (in lakhs) 3,362.63,091.423,077

Italian Edibles IPO Peer Comparison

Italian Edibles Limited outperforms its peers with higher revenues of ₹6321.20 lakhs, a positive EPS of ₹2.43, and a strong RoNW of 24.50%. In contrast, lotus chocolate and tapi fruit processing exhibit negative EPS and P/E ratios, indicating weaker financial performance.

CompanyTotal Revenue(₹ in lakhs)Face Value per Equity Share (₹)P/EEPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Italian Edibles Limited6321.201027.982.4324.5062.90
Lotus Chocolate Company Limited6271.8010(71.76)(5.42)NA(5.09)
Tapi Fruit Processing Limited2067.2110(248.73)(0.67)(2.47)20.06

Italian Edibles Ltd IPO Objective

The main objective of Italian Edibles is to invest INR 800 lakhs in a new manufacturing unit in Tillor Khurdh, repay INR 614.43 lakhs in borrowings, allocate INR 600 lakhs for working capital, and utilize the balance for general corporate goals and offer expenses.

  1. Setting Up of Manufacturing Unit: The company aims to invest INR 800 lakhs in a new manufacturing unit in Tillor Khurdh, Indore district, Madhya Pradesh. Expected to be operational by Fiscal 2025, current business operations will persist at the existing premises until completion.
  1. Repayment Of Certain Borrowings: The company plans to allocate about INR 614.43 lakhs from the Net Proceeds to fully or partially repay certain outstanding borrowings. This strategic use of funds aims to reduce the company’s debt burden.
  1. To Meet Incremental Working Capital Requirements: The company intends to utilize INR 600 lakhs from net proceeds for anticipated working capital needs in FY 2024. The remaining balance will be sourced from internal accruals, borrowings, or own funds, strategically supporting the company’s growth plans.
  1. General Corporate Expenses: The company plans to deploy the balance funds towards the general corporate goals, including funds allocated for growth, partnerships, marketing, expansion, and unforeseen expenses.
  1. To Meet The Expenses Of The Issue: The total expenses of the offer are estimated to be approximately INR 80.00 lakhs. The costs of this offer include, among others, underwriting and management fees, printing and distribution expenses, advertisement expenses, and legal fees, if applicable.

Italian Edibles IPO Risks and Challenges

Italian Edibles faces legal risks with ongoing proceedings, potentially diverting resources. Heavy reliance on critical suppliers without agreements poses negotiation risks, impacting operations. business concentration in Central, Northern, and Western India may hinder diversification, affecting growth and financial stability.

  • Ongoing legal proceedings at various levels may divert management, attention, and financial resources. Adverse judgments in these proceedings pose a business risk, impacting financial condition and results of operations.
  • Heavy reliance on top suppliers (65.10% of revenues) without definitive agreements poses a risk. Negotiation-dependent pricing may affect margins. Issues with suppliers could disrupt operations. Leveraging relationships is crucial; failure may impact business.
  • Businesses in Central, Northern, and Western India face risks such as changing tastes, competition, economic slowdowns, and regional issues. Failure to diversify revenue sources may impact growth, operations, and financial condition.

Italian Edibles IPO – Industry & Market Potential

Increasing rural consumption, demand for branded products, and the role of online portals are driven by rising income, brand consciousness, and the growing youth population. GST implementation and the internet’s influence contribute to sector growth.

The Indian confectionery market, valued at INR 338.2 Billion in 2022, is projected to reach INR 485.9 Billion by 2028 with a 6.3% CAGR. Diverse sugar-rich products, like chocolates and candies, are accessible through multiple retail channels.

India, a primary Jaggery producer, is a leading global trader and exporter. In 2022-23, it exported 761,640.19 MT of Jaggery and Confectionery, valued at Rs.4,330.07 Crores/ 537.01 USD million, showcasing a significant international market presence.

Italian Edibles Ltd IPO – Type of Offer

Italian Edibles’ IPO will issue 39,20,000 new shares at INR 68 per share to raise capital. This fund will be used for manufacturing setup, debt repayment, working capital, and corporate expenses funding.

Italian Edibles IPO Offer Size

The offer size of Italian Edibles is INR 2665.60 lakhs consisting of issue 39,20,000 new shares at INR 68 per share to raise capital.

Italian Edibles IPO Allotment Structure

Italian Edibles Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 2,00,000 shares for Market Makers.

  •  Retail Individual Investors (RII):These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  •  Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 2,00,000 shares for this purpose.

How to apply for an Italian Edibles IPO through Alice Blue?

 To apply for the Italian Edibles 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.
  1. Check for IPO Details: Once your account is active, you can check for the Italian Edibles IPO details in the IPO section of the Alice Blue platform.
  1. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  1. Submit the Application: Confirm all your details and submit your application.

  You can apply for Italian Edibles IPO at Alice Blue in just a few clicks!

Check Allotment Status: After 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 do you check the Italian Edibles 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 Italian Edibles 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 Italian Edibles 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 Italian Edibles IPO:

  • Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Italian Edibles 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 (BSE) SME (Small Medium Enterprise) 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.

 Italian Edibles Limited IPO Offer Registrar

The registrar for the Italian Edibles Limited 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

S6-2, 6th Floor, Pinnacle Business Park,

Mahakali Caves Road, Next to Ahura Centre,

Andheri East,

Mumbai – 400 093,

Maharashtra, India

Tel. No.: +91 22 6263 8200

Email: [email protected]

Website: www.bigshareonline.com

Italian Edibles IPO FAQs

1. What is the allotment date of the Italian Edibles IPO? 

The allotment date of the Italian Edibles IPO is February 8, 2024.

2. What is the price band of the Italian Edibles IPO? 

The company is going to issue shares at INR 68 per share.

3. What is the size of the Italian Edibles IPO? 

The issue includes a fresh Issue of up to 39,20,000 Equity Shares of the Company at INR 68 per share, totaling INR 2665.60 lakhs. The company intends to use the funds raised for manufacturing setup, debt repayment, working capital, and corporate expenses funding.

4. What is the listing date of the Italian Edibles IPO? 

The listing date of the Italian Edibles IPO is February 12, 2024.

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