Khyati Global Ventures is coming up with an IPO worth INR 18.30 crores, consisting of a fresh issue of shares worth INR 10.38 crores and an offer to sell shares worth INR 7.92 crores. The company aims to find its working capital requirement and for general corporate purpose. 

Khyati Global Ventures IPO – Important Dates

Read more about Khyati Global Ventures Limited IPO GMP

Khyati Global Ventures Limited IPO  – Company Profile

Khyati Global Ventures is an Exporter and Re-packager of a variety of FMCG products which include sub-categories of Food stuff, Non-food FMCG products, Household Products, Festive handicraft items, and also deals in Pharmaceutical products. The major customers are wholesalers and supermarket importers who run a chain of supermarkets located in foreign countries.

The company believes in facilitating one-stop vendors for its customers’ every purchase need, along with competitive pricing due to local market knowledge, careful product assortment, and supply chain efficiencies. 

Khyati Global Ventures Ltd IPO Fundamental Analysis 

Khyati Global Ventures company shows steady financial health with growth in revenue, profitability, and efficient debt management. Given the improving financial ratios and profitability, it could be considered a good investment, especially for those seeking moderate growth with manageable risk.

Revenue and Expenses:

• Revenue increased from ₹9,388.75 lakhs in March 2023 to ₹10,346.36 lakhs in March 2024, followed by ₹2,679.24 lakhs in the first quarter of 2024.
• Expenses also rose from ₹9,342.31 lakhs in March 2023 to ₹10,112.12 lakhs in March 2024, with ₹2,591.90 lakhs in expenses for the first three months of 2024.
• Although revenue is growing steadily, expenses are close to revenue, which may limit profitability in the short term.

Profit and Loss After Tax (PAT):

• The company has reported modest profits, with PAT increasing from ₹205.66 lakhs in March 2023 to ₹253.19 lakhs in March 2024. For the first quarter of 2024, PAT is ₹94.67 lakhs, which is a positive sign of maintaining profitability.
• The profit margins are still small relative to revenue, indicating that further efficiency improvements are necessary to enhance overall profitability.

Diluted EPS:

• EPS has increased from ₹3.97 in March 2023 to ₹4.89 in March 2024, with ₹1.68 for the three-month period ending in June 2024. This suggests that the company is growing earnings per share, but the growth remains moderate.

Return on Net Worth (RoNW):

• RoNW was strong at 22% in March 2023 but slightly declined to 21.31% in March 2024. For the first three months of 2024, RoNW is 5.34% (not annualised), reflecting a slight slowdown in profitability.
• The company is generating solid returns on equity, though the declining trend could be a concern if not reversed.

Net Asset Value (NAV) per Equity Share:

• NAV per share dropped significantly from ₹72.26 in March 2023 to ₹22.96 in March 2024 but rebounded to ₹29.90 by June 2024. This indicates some dilution or adjustments in equity but shows recovery as of the latest period.

Assets and Liabilities:

• Total assets have grown from ₹3,458.90 lakhs in March 2023 to ₹5,275.97 lakhs in March 2024 but decreased to ₹4,911.62 lakhs by June 2024.
• Liabilities have increased from ₹2,523.90 lakhs in March 2023 to ₹4,087.78 lakhs in March 2024 and then decreased to ₹3,138.60 lakhs in June 2024. This indicates the company has been managing its debt, reducing it over the recent quarter.

Debt-Equity Ratio and Current Ratio:

• The debt-equity ratio improved from 1.79 in March 2023 to 1.02 by June 2024, signaling better financial leverage management.
• The current ratio has also improved from 1.18 in March 2024 to 1.45 in June 2024, suggesting that the company’s short-term liquidity is strengthening.

Khyati Global Ventures IPO Financial Analysis

Khyati Global Ventures Limited IPO Peer Comparison

The company believes that there is no other listed company that is specifically comparable to it with respect to the business model, size, and financials.

Khyati Global Ventures Ltd IPO Objective

The main objective of Khyati Global Ventures is to utilize INR 7.45 crores from the Net Proceeds to meet significant working capital requirements. The remaining funds will be allocated for general corporate purposes, including operational expenses, project development, and enhancing business capabilities.

1. To meet working capital requirements: The business has significant working capital requirements. The company plans to utilise to the extent of INR 7.45 crores from the Net Proceeds for the same.

2. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.

Khyati Global Ventures IPO Risks And Challenges

Khyati Global Ventures relies heavily on exports for revenue, making it vulnerable to changes in foreign demand or budgets, which could negatively impact business. Past and potential future negative cash flows, as well as heavy dependence on a few key customers (42% of revenue from the top five), pose significant risks to its profitability and operations.

1. The company derives the majority of its revenue from the export of its products. Loss of orders from the foreign country and change in their requirement or fall in the budget will have material adverse effects on the business, financial condition, and result of the operation.

2. The company has experienced negative cash flows in the past. Any negative cash flows in the future could adversely affect the results of operations and consequently the revenues, profitability, and growth plans. 

3. Almost 42% of the revenue of the company is derived from the top 5 customers. The loss of any one or more of such customers may have a material effect on the business operations and profitability.

Khyati Global Ventures Ltd IPO – Industry & Market Potential

India exports tea to more than 25 countries throughout the world. Russia, Iran, UAE, USA, the UK, Germany, and China are some of the major importers of tea from India. During 2023-24 (Until January 2024) UAE, Iran, and USA imported US$ 120.29 million, US$ 80.23 million, and 69.20 million of tea from India. Iran, UAE, and Russia are among India’s top tea export destinations.

India’s share of pharmaceuticals and drugs in the global market is 5.71%. Formulations and Biologics constituted the major portion of India’s exports with a share of 72.54% followed by drug intermediates and bulk drugs. During FY24 (Until February 2024), the exports of drugs and pharmaceuticals stood at US$ 25.02 billion.

Demand for Indian handicraft products has constantly been increasing in foreign markets due to their individuality and great beauty. The major handicraft export destinations for India were the USA, the UAE, the UK, Germany, the Netherlands, and France.

India is one of the largest agricultural product exporters in the world. In April-January 2024, the overall value of export of agricultural products stood at US$ 38.65 billion. In 2022-23, the agricultural exports from India stood at US$ 52.50 billion.

Khyati Global Ventures Limited IPO – Type of Offer

Khyati Global Ventures is launching an IPO with a total issue size of INR 18.30 crores, comprising a fresh issue of shares worth INR 10.38 crores and an offer for sale worth INR 7.92 crores. The company plans to utilize the proceeds for working capital requirements and general corporate purposes.

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 10.38 crores. The company intends to utilize the proceeds from the fresh issue to meet its working capital requirement and for general corporate purposes. 

2. Offer for sale: Khyati Global Ventures is offering to sell existing shares worth INR 7.92 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Khyati Global Ventures IPO Offer Size

The IPO offer size of Khyati Global Ventures is INR 18.30 crores, consisting of a fresh issue of shares worth INR 10.38 crores and an offer for sale worth INR 7.92 crores. The company aims to fund its working capital requirements and general corporate purposes.

Khyati Global Ventures Limited IPO Allotment Structure

Khyati Global Ventures 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 93,600 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 93,600 shares for this purpose. 

Read more about Khyati Global Ventures IPO Allotment Status

How to apply for the Khyati Global Ventures IPO?

To apply for the Khyati Global Ventures Limited IPO through Alice Blue, 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.

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

 You can apply for the Khyati Global Ventures Limited 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 Khyati Global Ventures IPO Allotment Status?

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 the 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 Khyati Global Ventures Limited 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 Khyati Global Ventures Limited 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Khyati Global Ventures Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Khyati Global Ventures Limited 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 (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Khyati Global Ventures Ltd IPO Offer Registrar

The registrar for the Khyati Global Ventures 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

Office No S6-2, 6th Floor, Pinnacle Business Park, 

Next to Ahura Centre, Mahakali Caves Road, 

Andheri (East) Mumbai – 400093 

Email: [email protected]  

Website: www.bigshareonline.com

Khyati Global Ventures IPO  – FAQs