Annapurna Swadisht Limited IPO

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i. Annapurna Swadisht is manufacturer of snacks and food products, namely, Fryums, cakes, candys, namkeen, chips and Gohona Bori. They key raw materials include refined flour, palm oil, spices and laminates. The Company use raw material of premium quality sourced from reputed local suppliers, which help us to ensure the quality of our products.

ii. Annapurna Swadisht  is a  Bharat FMCG Company. They are one of the largest FMCG player in Eastern India and they are the fastest growing segment in Fryums, Cakes, Candies, Namkeen and Potato Chips.

iii. They have a unique price point of Rs. 5 which makes them the dominant player in Rural Area. The company sell more than 12 Lakh packets of products daily. The Company have a hub in Asansol with an constructed area of approx. 50,142 sq. ft. and at Manufacturing unit in Siliguri with an constructed area of approx. 35,000 sq. ft. We have generated employment to over 235 people.

iii. The daily production capacity of the Asansol manufacturing unit is 15 MT of Fryums, whereas the daily production capacity of manufacturing unit at Siliguri is 10 MT of Fryums.

iv. Annapurna Swadisht products are marketed under its own brand names Jackpot, Chatpata Moon, Balloon, Finger, Rambo, Makeup Box, Dhamaka, Phoochka, Jungle Adventures, Ringa, Bachpan Ka Pyaar, Kurchure, Cream Filled Cake Vanilla, Cream Filled Cake Litchi, Cream Filled Cake Mix Fruit, Cream Filled Cake Orange, Cream Filled Cake Chocolate, Mixed Fruit Flavoured Cake, Chocolate Flavoured Sliced Cake, Pluss, Malai Pop, Imly Pop, Coconut Crunch, Kaju Candy, Coffico, Masala Teekha, Salted Chips, Paprika Spices, Tomatina Classic, American Cheese, Gram Gathiya, Gram Chana Jor, Crispy Diet Chidwa, Gram Bhawnagri Sev, Gram Badam Pokora And Gram Masala Muri.

v. Strengths:

i. Availability of raw materials.
ii. Low wage labour availability.
iii. Good transportation system.
iv. Brand image.

Objects of the Annapurna Swadisht Limited IPO:

The Net Proceeds from the Issue are proposed to be utilized by the Company for the following objects: 1) Funding the capital expenditure requirements. 2) General Corporate Expenses.
DRHP of Annapurna Swadisht Limited IPO
RHP of Annapurna Swadisht Limited IPO

Annapurna Swadisht Limited IPO Details:

Open Date: Sep 15 2022
Close Date: Sep 19 2022
Total Shares: 4,322,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 30.25 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 68 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 27 2022

Promoters And Management:

i. Mr. Shreeram Bagla, aged 43 years, is Promoter cum Managing Director of the Company. He holds bachelor degree in commerce. He was named as first Director in the Articles of Association of the Company upon the conversion of the firm into the Company on February 11, 2022. Further, Mr. Shreeram Bagla was further designated as the Managing Director of the Company in the EGM held on 01/07/2022. He has an experience of around 10 years in the Industry. He is responsible for the expansion and overall management of the business of the Company. His abilities have been instrumental in leading the business of the Company. ii. Mr. Sumit Sengupta, aged 42 years, is Director of the Company. He holds Diploma in Civil Engineering from Acharya Prafulla Chandra Ray Polytechnic, Jadavpur University. He was named as first Director in the Articles of  Association of the Company upon the conversion of the firm into the Company on February 11, 2022. Mr. Sumit Sengupta was subsequently designated as the Whole- Time Director of the Company in the EGM held on 01/07/2022. He has an experience of more than 15 years working in different industries. He manages the entire production of the Company. iii. Mr. Rajesh Shaw, aged 52 years, is Whole Time Director of the Company. He is a member of the Institute of Cost and Work Accountants of India. He has over 30 years of experience in industry. Rajesh is spearheading the Company’s efforts in implementing an ERP CRM package. Rajesh’s last assignment was with ITC, where he spent 11 years as an SAP FICO Manager implementing the Finance Business process requirements and mapping them with the SAP R/3 system. Besides, he’s also worked with reputed companies, primarily as an IT process system professional.

Financials of Annapurna Swadisht Limited IPO:

Particulars (in crores) March 20 March 21 March 22
Revenue from operations 13 20 60
Cost of Materials Consumed 11 16 46.5
Change in Inventories 0.45 -1 -4
Employee Benefit Expense 0.45 0.86 2.5
Other Expense 1 2 10
Operating Profit 0.52 117 5
OPM% 4% 10.7% 8.33%
Finance Cost 0.032 0.24 0.86
Depreciation 0.21 0.45 0.71
Other Income 0 1 0
Profit (Loss) before tax 0.52 0.79 3.43
Tax expense 0.18 0.28 1.02
Profit (Loss) for the period 0.34 0.51 2.4
Share After Issue 1.6422 1.6422 1.6422
Earnings per share 0.20 0.31 1.46
 

Comparison With Peers:

Name of the Company CMP FV EPS P/E
Annapurna Swadisht Limited 68 10 1.46 46
Prataap Snacks Limited 810 5 -2.95 270
DFM Foods Limited 361 2 -7.45 -48
Britannia Industries Limited 3,685 1 61.14 60.6

Recommendation on Annapurna Swadisht Limited IPO:

Review and Recommendation of Annapurna Swadisht IPO by IZ Team  is 5/10

1. The Company is manufacturer of snacks and food products, namely, Fryums, cakes, candys, namkeen, chips and Gohona Bori. 2. The key raw materials used to make above products include refined flour, palm oil, spices and laminates. 3. Company claims to be one of the largest FMCG player in Eastern India and the fastest growing segment in Fryums, Cakes, Candies, Namkeen and Potato Chips. 4. They have a unique price point of Rs. 5 which makes Annapurna the dominant player in Rural Area. They sell more than 12 Lakh packets of products daily. 5. Company have a hub in Asansol with an constructed area of approx. 50,142 sq. ft. and at Manufacturing unit in Siliguri with an constructed area of approx. 35,000 sq. ft and employs over 235 people. 6. Revenue has increased from 13 Crores in Fy20 to 60 Crores in Fy22. This is excellent growth. 7. PAT has improved from 0.34 Crores in Fy21 to 2.4 Crores in Fy22. Excellent growth in bottomline. 8. IPO is coming at P/E of 46x which looks on higher side. 

Lead Manager of Annapurna Swadisht Limited IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Annapurna Swadisht Limited IPO:

  1. Skyline Financial Services Private Ltd

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