The Kolkata-based FMCG firm will sell its shares in the range of Rs 68-70 apiece, with a minimum lot size of Rs 2,000 shares amounting to Rs 1.4 lakhs, which is the minimum and maximum amount a retail investor can bid for.
The issue, open for subscription till Monday, September 19, entirely consists of issuance of 4,322,000 fresh equity shares. The company will be listed at NSE Emerge, a platform for MSME companies.
Marquee investors including market veteran Shankar Sharma have invested in the pre-IPO round of funding in the company. Furthermore, Sharma has come on board in his personal capacity.
Brokerage firms remain bullish on the NSE’s MSME issue backed by the Dalal Street veteran.
Annapurna Swadisht enjoys a strong track record of having ramped up its turnover in the last 4 years via its focus on brand building and positioning its products in a low cost segment and it gains market share in East India, said Profitmart Securities.
“We are positive on it for the long term as the FMCG snack market in India offers a huge runway for growth over the next 3-5 years ahead. The growth of this sector is well complemented by the growth in the Tier 1 and Tier 2 markets,” it added with a subscribe rating to the issue.
Annapurna Swadisht is currently valued at a P/E of 20x based on its FY22 EPS of Rs 3.44, said the analysts. At the proposed IPO price of Rs 70 per share, the shares are being offered at a price-to-book (P/BV) at 2.90 times.
The company has demonstrated stellar revenue growth at a 111 per cent for 3-year CAGR. It is well placed in its target markets with little threat from bigger players, said
in its pre-IPO note.
“Considering its active product management activities and plans for aggressive distributor network growth, the company is well poised to grow its market share in the years to come,” it added with a ‘subscribe for long term rating’.
Annapurna Swadisht has two manufacturing units in Asansol and Siliguri, with a daily production capacity of 15 metric tonnes (MT) of Fryums in the Asansol plant and a daily production capacity of 10 MT of Fryums in the Siliguri plant.
It sells products under brand names such as Jackpot, Chatpata Moon, Balloon, Finger, Rambo, Makeup Box, Dhamaka, Phoochka, Jungle Adventures, Ringa, Bachpan Ka Pyaar, Kurchure, among others.
The net proceeds from the issue will be utilized towards setting up additional units in West Bengal and expanding the product range to eastern and north-eastern states.
The company is setting up a greenfield project in Gurap and Dhulagarh, which are expected to be in operation from the fourth quarter of FY23.
Annapurna Swadisht has reported a total revenue of Rs 61.04 crore in March 2022, with a net profit of Rs 2.40 crore. The company has Rs 3.47 crore of long-term borrowing in its book as on March 2022 with a debt-equity ratio at 1.26.
The issue of Annapurna Swadisht is managed by Corporate Capital Ventures as the BRLM and Skyline Financial Services is the registrar to the issue.
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