Jay Kailash Namkeen Limited is coming up with an IPO worth INR 11.93 crores, consisting of a fresh issue of 16.33 lakh shares. The company plans to use the funds raised to meet the working capital requirements,and general corporate purposes.
Jay Kailash Namkeen Limited IPO – Important Dates
| Jay Kailash Namkeen IPO Date | March 28, 2024 to April 3, 2024 |
| Jay Kailash Namkeen IPO Listing Date | April 8, 2024 |
| Jay Kailash Namkeen IPO Price | INR 70 to 73 per share |
| Jay Kailash Namkeen IPO Lot Size | 1600 Shares |
| Jay Kailash Namkeen IPO Total Issue Size | INR 11.93 crores |
| Jay Kailash Namkeen IPO Basis of Allotment | April 4, 2024 |
| Jay Kailash Namkeen IPO Initiation of Refunds | April 5, 2024 |
| Jay Kailash Namkeen IPO Credit of Shares to Demat | April 5, 2024 |
| Jay Kailash Namkeen IPO Issue Type | Book Built Issue IPO |
| Jay Kailash Namkeen IPO Listing At | BSE SME |
Jay Kailash Namkeen Ltd IPO – Company Profile
The company is engaged in the business of manufacturing packaged Indian snacks. The range of Indian snacks includes Chana Jor Namkeen, Masala Chana Jor, Pudina Chana, Masala Mung Jor, Plain Mung Jor, Soya Sticks, Haldi Chanas, Chana dal, Sev Murmura & Garlic Sev Murmura, Bhavnagari Gathiya, Chana Dal, Sing Bhujia, Popcorn, Roasted Peanuts, etc. The company has 186 SKUs of its 56 products.
The company was initially engaged in B2B business wherein it manufactures products in bulk quantities for other well recognised companies/brands in the same industry. The company manufactures products and supplies in the states of Assam, Bihar, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana and Uttar Pradesh. However, from April 2022 onwards it also started a B2C business along with its existing B2B business under brand name “Jay Kailash”. They are also into the wholesale trade of Chana Jor Namkeen.
Jay Kailash Namkeen IPO Review
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 November 2023 |
| Revenue (₹ in lakhs) | 1,043.12 | 979.99 | 639.79 |
| Equity (₹ in lakhs) | 50.42 | 359.21 | 582.45 |
| Expenses (₹ in lakhs) | 963.39 | 871.29 | 593.01 |
| Profit and Loss After Tax (₹ in lakhs) | 54.57 | 88.79 | 40.45 |
| Diluted EPS only (₹) | 3.28 | 3.03 | 1.22 |
| Return on Net Worth (%) | 108.25% | 24.72% | 6.94% |
| NAV per Equity Share (₹) | 1.74 | 12.27 | 17.62 |
| Total Assets (in lakhs) | 223.25 | 671.19 | 1118.30 |
| Total Liabilities (in lakhs) | 172.83 | 311.98 | 535.85 |
| Debt Equity Ratio (in times) | 3.93 | 0.28 | 0.61 |
| Current Ratio (In Times) | 0.97 | 1.04 | 2.23 |
Jay Kailash Namkeen Limited IPO Fundamental Analysis
Jay Kailash’s financial analysis for an IPO reveals a mixed picture. While there are positive indicators like increased equity and improved liquidity, concerns arise from declining revenue, profitability, and EPS trends. Further evaluation of market conditions and growth prospects is recommended before considering investment in the IPO.
- Revenue Trend: The company’s revenue has shown a declining trend over time, which can be a concern. Investors typically look for companies with stable or growing revenue streams to ensure future profitability and sustainability.
- Equity and Liabilities: The equity has increased significantly, indicating potential growth and investor confidence. The decreasing debt-equity ratio is a positive sign as it suggests lower reliance on debt financing.
- Profitability: While the company’s profitability has shown fluctuations, with an initial increase in profit after tax but a decrease later, the return on net worth (RoNW) has also declined significantly. This indicates a potential decrease in profitability relative to the net worth of the company.
- Earnings per Share (EPS): The diluted EPS has also declined over time, which may not be favorable for investors looking for companies with strong earnings growth potential.
- Financial Position: The NAV per equity share has increased, indicating a stronger underlying asset value per share. The current ratio has also improved, reflecting better liquidity and ability to meet short-term obligations.
Jay Kailash Namkeen Ltd IPO Peer Comparison
Jay Kailash Namkeen has a lower EPS and RoNW but lacks PE ratio data. Annapurna Swadisht shows a higher EPS and RoNW but a lower total revenue. Prataap Snacks demonstrates the highest total revenue and EPS, with a high PE ratio and NAV per equity share.
| Company | Total Revenue (₹ in lakhs) | Face Value (₹) | EPS (₹) | PE Ratio (in times) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Jay Kailash Namkeen Limited | 979.99 | 10 | 3.03 | NA | 24.72% | 12.25 |
| Annapurna Swadisht Limited | 16,017.49 | 10 | 4.35 | 44.24 | 11.95% | 36.39 |
| Prataap Snacks Ltd | 1,65,293.22 | 5 | 8.51 | 86.55 | 3.07% | 288.34 |
Jay Kailash Namkeen Ltd IPO Objective
The main objective of Jay Namkeen’s IPO is to allocate INR 7.00 crores for working capital needs, with the remaining funds dedicated to general corporate goals like strategic initiatives, partnerships, branding, marketing, and new client referrals.
- To meet the working capital requirement: The company plans to utilise INR 7.00 crores to meet its working capital requirement.
- General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures, and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.
Jay Kailash Namkeen IPO Risks And Challenges
Jay Kailash Mamkeen’s IPO’s risks include potential cost increases or shortages in raw materials due to lacking long-term agreements with suppliers, under-utilization of production capacities, and revenue dependence on a limited number of customers.
- The company does not have long term agreements with suppliers for raw materials and an increase in the cost of or a shortfall in the availability of such raw materials could have an adverse effect on the business, results of operations and financial condition.
- Under-utilization of the production capacities could have an adverse effect on the business, future prospects and future financial performance.
- Almost 66% of the revenue of the company comes from top 10 customers.Any loss of business from one or more of them may adversely affect the revenues and profitability.
Jay Kailash Namkeen Limited IPO – Industry & Market Potential
According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. India’s agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022-January 2023).
Rapid population expansion in India is the main factor driving the industry. The rising income levels in rural and urban areas, which have contributed to an increase in the demand for agricultural products across the nation, provide additional support for this.
In accordance with this, the market is being stimulated by the growing adoption of cutting-edge techniques including block chain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing technologies, as well as the release of various e-farming applications. The food processing sector will be led by the demand in retail and the rise of health-conscious consumers.
Jay Kailash Namkeen IPO – Type of Offer
Jay Kailash Namkeen Limited is set to launch an IPO valued at INR 11.93 crores, comprising 16.33 lakh new shares. The company intends to allocate the proceeds towards fulfilling working capital needs and general corporate purposes.
Jay Kailash Namkeen Ltd IPO Offer Size
The offer size for Jay Kailash Namkeen Limited’s IPO is INR 11.93 crores, with a fresh issue of 16.33 lakh shares. The company plans to utilize the funds raised to meet working capital requirements and for general corporate purposes.
Jay Kailash Namkeen Limited IPO Allotment Structure
Jay kailash Namkeen’s allocation will be as follows: 30% for Qualified Institutional Buyers (QIB), 20% for Non-Institutional Investors (NII), and 50% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 30% 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): 20% 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 50% 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 Makers Reservations: A portion of the issue, i.e., 83,200 shares are reserved for market makers.
How to apply for a Jay Kailash Namkeen Ltd IPO?
To apply for the Jay Kailash Namkeen IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Jay Kailash Namkeen IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Jay Kailash Namkeen 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 Jay Kailash Namkeen’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Jay Kailash Namkeen 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 Jay Kailash Namkeen IPO.
- 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 that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Jay Kailash Namkeen IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Jay Kailash Namkeen IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay 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 completing the allotment process, a few days after the IPO window closes.
Jay Kailash Namkeen Ltd IPO Offer Registrar
The registrar for the Jay Kailash Namkeen Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153A, 1st floor, Okhla Industrial area,
Phase I, New Delhi, 110020
Email: [email protected]
Website: www.skylinerta.com
Jay Kailash Namkeen Limited IPO – FAQs
The allotment date of the Jay Kailash Namkeen Limited IPO is April 4, 2024.
The price band of the issue is INR 70-73 per share.
The offer size for Jay Kailash Namkeen Limited’s IPO is INR 11.93 crores, with a fresh issue of 16.33 lakh shares. The company plans to use the funds raised to meet the working capital requirements and for general corporate purposes.
The listing date of Jay Kailash Namkeen’s IPO is April 8, 2024.
