Established in the year 2019, Srivari Spices and Foods Limited embarked on its journey in the realm of culinary delights. Specializing in the art of crafting exquisite spices and finely milled flour (commonly known as chakki atta), the company’s expertise also extends to the intricate domains of marketing and product distribution. Predominantly centered in the vibrant landscapes of Telangana and Andhra Pradesh, Srivari Spices and Foods Limited orchestrates its operations with a harmonious blend of tradition and innovation.
Within its array of offerings, Srivari Spices and Foods Limited boasts three distinct product categories: Spices, Masala blends, and Atta. This encompassing collection features an eclectic assortment of spice variations, each meticulously curated to evoke a symphony of flavors. The fragrance of these carefully sourced spices permeates through over 3000 retail outlets, while their meticulously processed whole wheat and sharbati atta grace the shelves of more than 15000 outlets across Telangana and Andhra Pradesh.
A pilgrimage across the diverse regions of India forms the foundation of Srivari Spices and Foods Limited’s raw material acquisition process. These carefully chosen elements subsequently undergo a meticulous transformation, resulting in the creation of the company’s signature products. An unwavering commitment to authenticity shines through, as artificial preservatives and chemicals find no refuge in this intricate alchemical process. Thus, the culmination of these efforts yields a treasury of organic spices and flour, each carrying the essence of untainted freshness and the inherent goodness of its constituents.
Srivari Spices and Foods IPO Details
The IPO offered by Srivari Spices and Foods takes the form of a meticulously structured Book Built Issue, enhancing its appeal in the financial market. This initial public offering entails a comprehensive issue size totaling Rs 9.00 Crores, a significant stride in the company’s financial journey. Prospective investors are presented with an intriguing price range of ₹40 to ₹42 per share, a testament to the intricacies of valuation in the market landscape.
Srivari Spices and Foods IPO Timetable (Tentative)
Srivari Spices and Foods IPO opens on Aug 7, 2023, and closes on Aug 9, 2023.
| IPO DATE | Aug 7, 2023 to Aug 9, 2023 |
| ALLOTMENT DATE | Aug 14,2023 |
| LISTING DATE | Aug 18,2023 |
| PRICE | ₹40 to ₹42 per share |
| Lot Size | 3000 Shares |
| Total Issue Size | 2,142,000 shares (aggregating up to ₹9.00 Cr) |
| Fresh Issue | 2,142,000 shares (aggregating up to ₹[.] Cr) |
| IPO Open Date | Monday, 7 August 2023 |
| IPO Close Date | Wednesday, 9 August 2023 |
| Basis of Allotment | Monday, 14 August 2023 |
| Initiation of Refunds | Wednesday, 16 August 2023 |
| Credit of Shares to Demat | Thursday, 17 August 2023 |
| Listing Date | Friday, 18 August 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Aug 9, 2023 |
Srivari Spices and Foods IPO Reservation
Key Performance Indicator
Srivari Spices and Foods IPO presents a pool of 2,142,000 shares available for subscription. The allocation is distributed as follows:
- Qualified Institutional Buyers (QIBs): 408,000 shares, which accounts for 19.05% of the total offering.
- Retail Individual Investors (RIIs): 714,000 shares, constituting 33.33% of the overall offering.
- Non-Institutional Investors (NIIs): 306,000 shares, representing 14.29% of the total allocation.
| Anchor Investor Shares Offered | 606,000 (28.29%) |
| Market Maker Shares Offered | 108,000 (5.04%) |
| QIB Shares Offered | 408,000 (19.05%) |
| NII (HNI) Shares Offered | 306,000 (14.29%) |
| Retail Shares Offered | 714,000 (33.33%) |
| Total Shares Offered | 2,142,000 (100%) |
Srivari Spices and Foods IPO showcases a market capitalization of Rs 30 crore. Additionally, the Price-to-Earnings ratio (P/E) is evaluated at 9.59x.
KPI | Values |
| P/E (x) | 9.59 |
| Market Cap (₹ Cr.) | 30 |
| ROE | 44.35% |
| ROCE | 23.65% |
| Debt/Equity | 1.41 |
| EPS (Rs) | 4.45 |
| RoNW | 24.79% |
Company Financials
| Period Ended | 31 Mar 2020 | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 235.88 | 627.38 | 1,067.62 | 2,568.13 |
| Revenue | 19.05 | 1,139.90 | 1,764.21 | 3,582.01 |
| Profit After Tax | -10.69 | 35.26 | 72.84 | 312.61 |
| Net Worth | 177.54 | 426.91 | 499.75 | 910.02 |
| Reserves and Surplus | -10.69 | 24.57 | 97.41 | 410.02 |
| Total Borrowing | 277.39 | 1,283.51 |
Objects of the Issue
The company intends to employ the net proceeds for the following purposes:
- Meeting the working capital necessities of the company.
- Catering to general corporate objectives.
The allocation of net proceeds is designed to support both operational needs and overall corporate goals.
Srivari Spices and Foods IPO Review (I have applied)
The company operates within a dynamic and competitive landscape, marked by numerous players. The significant upturn in its financial performance during FY23 has attracted attention and raised questions about its sustainability moving forward. Despite this, the management remains optimistic about maintaining these positive patterns through the introduction of premium, high-margin products under the Srivari Products brand. Given the performance in FY23, the IPO seems to be reasonably valued.
However, it’s worth noting that the smaller post-IPO equity base might result in a lengthier transition to the mainboard. Potential investors are advised to contemplate placing funds with a medium to long-term outlook, considering the evolving market conditions and the company’s strategic moves.
Srivari Spices and Foods IPO Subscription Status (Bidding Detail)
As of August 9, 2023, at 17:00, the Srivari Spices and Foods IPO has garnered remarkable subscription figures, demonstrating the high demand from investors. The IPO has been oversubscribed by an astonishing 450.03 times.
Here’s the breakdown of subscriptions across different categories:
- Retail Category: The public issue has been oversubscribed by 517.95 times in the retail category, showcasing significant interest from individual investors.
- Qualified Institutional Buyers (QIB) Category: The subscription in the QIB category stands at an impressive 79.10 times, indicating substantial demand from institutional investors.
- Non-Institutional Investors (NII) Category: The NII category has seen exceptional demand, with a subscription rate of 786.11 times, highlighting strong interest from non-institutional investors.
These subscription numbers depict the enthusiastic response from various investor segments toward the Srivari Spices and Foods IPO. Check Day by Day Subscription Details (Live Status)
GMP(grey market premium)
Srivari Spices and Foods latest IPO GMP Today is ₹30(+/-2), last updated on Aug 9th 2023 17:00. Given at the price band of 42.00, the estimated listing price for the Srivari Spices and Foods SME IPO is ₹72 (cap price + today’s GMP). The expected gain/loss per share in terms of percentage is 71.43%.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Author has no plans to invest in this offer.