Italian Edibles Limited is launching its Rs 26.66 crore Initial Public Offering (IPO) that comprises of a fresh issue of 39.2 lakh shares without any offer for sale component. The public subscription for the issue will open on February 02, 2024 and close on February 07, 2024 and the company is scheduled for listing on SME platform of NSE on February 12, 2024. The company has fixed the IPO price band at ₹68 per share at a face value of ₹10 per share.
Company Overview
Italian Edibles Limited is a manufacture, supplier and exporter of confectionary products such as milk paste, chocolate paste, lollipops, candies, jelly sweets and fruit-based products etc. The company was founded in 2009 and has its registered office in Indore, Madhya Pradesh along with two manufacturing units in the state.
The companies operated pan India and has a customer base that includes companies such as Dharpal Premchand Ltd (BABA) group, Bakewell Biscuits Private Limited, R. K. Prabhvati Traders, Mamtar Stores, Ma Laxmi Traders, Chocolate World and Yuvraj Agency.
Purpose of the IPO
The company plans to utilise the funds from the issue to set up a new manufacturing unit, repayment of loans, to meet incremental working capital requirements and general corporate purposes.
Management of the Company
Mr. Ajay Makhija and Mr. Akshay Makhija are the promoters of the company. The promoters’ share holding post issue will be down to 73.47% from 100% pre-issue.
IPO Details
The IPO of Italian Edibles Limited will remain open for three days from February 02 to February 09, 2024. The retail investors can bid for 2,000 shares only i.e., 1 lot whereas NIIs are required to bid for minimum 4,000 shares (2 lots) and in multiples thereof. The allotment of shares for the IPO will be finalised on February 08, 2024 followed by credit of shares and unblocking of funds on February 09, 2024. Investors can check the allotment status with the issue registrar Bigshare Services Pvt Ltd.
| Offer Dates | |
| Opening | February 02, 2024 |
| Closing | February 07, 2024 |
| Issue Details | |
| IPO Type | Fixed Price, Fresh Issue |
| Issue Size | 3,920,000 shares (aggregating up to ₹26.66 Cr) |
| Fresh Issue | 3,920,000 shares (aggregating up to ₹26.66 Cr) |
| Offer for Sale | None |
| Market Maker Reservation | 2,00,000 shares |
| Face Value | ₹10 per share |
| Price Band | ₹68 per share |
| Lot Size | 2,000 shares |
| Lot Amount | ₹1,36,000 |
| Holding before issue | 10,857,151 shares |
| Holding after issue | 14,777,151 shares |
| IPO Organizer | |
| Listing at | NSE SME |
| BRML | First Overseas Capital Limited |
| Registrar | BigShare Services Pvt Ltd |
| Market maker | Nikunj Stock Brokers |
| Reservation & Lot details | |
| – Retailer investors: 50% of the net offering. Can apply for only 1 lot (2,000 shares). – 50% of the net offer is reserved for other investors including QIBs, NIIs. – HNIs can bid for minimum 2 lots (4,000 shares) | |
| Share Allotment & listing | |
| Finalization of allotment basis | February 08, 2024 |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | February 09, 2024 |
| IPO Listing Date / Share Trading | February 12, 2024 |
Financial Performance
The company’s revenue decreased by -16.1% in FY23 as compared to FY22 whereas the profit after tax grew by 229.4% in the same period. The company also reported a rise in assets value and net worth during the same period. The net worth stood at ₹12.87 crore and assets at ₹48.24 crore as reported on August 31, 2024.
| Period | August 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | ₹30.52 crore | ₹63.30 crore | ₹75.45 crore |
| Profit After Tax | ₹2.09 crore | ₹2.64 crore | ₹0.80 crore |
| Assets | ₹48.24 crore | ₹41.55 crore | ₹39.05 crore |
Key IPO Valuations
- ROE: 24.50%
- Debt to Equity Ratio: 1.6
- EPS: 3.41 post issue
- P/E- 19.97 post issue.
Italian Edibles Limited will be listed on the NSE Emerge on February 12, 2024. Refer to the RHP document for more details about the issue.
