SME IPO: Madhusudan Masala issue to open on September 18; key details

The initial public offering (IPO) of Madhusudan Masala will open for bidding on Monday, September 18 and the three-day bidding will conclude on Thursday, September 21. Madhusudan Masala will offer its shares at a fixed price band of Rs 66-70 per equity share.

With a history of more than four decades, Madhusudan Masala is engaged in manufacturing and processing more than 32 types of spices under the brand names 'Double Hathi' and 'Maharaja'. It also deals in papad, soya products, Asafoetida (Hing), black salt, rock salt and more.

The issue comprises entirely a sale of 34 lakh fresh equity shares, each with a face value of Rs 10, aggregating to Rs 23.80 crore. The lot size for the IPO is set at 2,000 equity shares, with each lot costing at Rs 1.4 lakh at the upper end of the price band. Retail investors are eligible to apply for a single lot, while non-institutional investors have to bid for a minimum of two lots.

The net proceeds from the IPO shall be utilized towards the company's working capital requirements, general corporate purposes, and covering issue-related expenses. The Madhusudan Masala has reserved 1.72 lakh equity shares for market maker portions with Hem Finlease serving as the market makers for the offering.

Madhusudan Masala's manufacturing facility is located at Industrial Area Hapa, near Jamnagar, Gujarat. The company has 212 SKU's of ground spices & blend spices. The company has a network of 2,100 wholesalers and 3,700 retailers in Gujarat, Maharashtra & Rajasthan.

For the fiscal year ending on March 31, 2023, Madhusudan Masala reported a net profit of Rs 5.76 crore with a revenue of Rs 127.51 crore. The company achieved a net profit of Rs 0.81 crore with revenue totaling to Rs 66.52 crore in the preceding fiscal year ending March 2022.

The company has allocated 50 percent of the net IPO offer to qualified institutional bidders (QIBs), while 15 percent of equity shares are reserved for non-institutional investors. Retail investors will have access to the remaining 35 percent of the offering.

Hem Securities is the sole manager to the issue, while Kfin Technologies Limited is the registrar to the issue. Shares of Madhusudan Masala will be listed on the SME platform of the National Stock Exchange.

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