Gajanand International Limited IPO

Apply 0
Avoid 0

Gajanand International Limited, formerly known as Gajanand Cottex Private Limited, was originally incorporated as a private limited company under the Companies Act, 1956, on June 15, 2009. The company was initially named “Gajanand Cottex Private Limited” and was registered under the corporate identification number U17111GJ2009PTC057251, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Over the years, the company underwent several name changes to reflect its evolving business focus and corporate identity. On May 26, 2023, the name was changed to “Gajanand International Private Limited,” and subsequently, it was converted to a public limited company named “Gajanand International Limited” on June 1, 2023, following a shareholders’ resolution passed in an extraordinary general meeting.

Gajanand International Limited has established itself as a prominent player in the cotton manufacturing industry, with a focus on producing contamination-free and sustainable cotton. The company’s manufacturing infrastructure is well-equipped, ensuring that the cotton produced meets high standards of quality and sustainability. Through its commitment to excellence, Gajanand International Limited has carved out a niche in the competitive cotton market, offering products that provide a satisfying experience to its consumers.

The company’s operational capabilities are further enhanced by its state-of-the-art warehouse and packaging facility. The warehouse is meticulously maintained in a hygienic condition, ensuring the cotton remains free from moisture and insect infestation. The infrastructure is systematically organized into different sections to facilitate the efficient storage and swift identification of products, thereby streamlining the shipping processes.

Since its inception, Gajanand International Limited has steadily built its reputation in the market by offering high-quality cotton at affordable prices. The company’s focus on customer satisfaction and its ability to meet the demands of a competitive market have solidified its position as a reliable provider of cotton products.

Objects of the Gajanand International Limited IPO:

The objects of the Issue are:- i. To meet out the Working Capital requirements of the Company; ii. To meet out the General Corporate Purposes; and iii. To meet out the Issue Expenses.
DRHP of Gajanand International Limited IPO
RHP of Gajanand International Limited IPO

Gajanand International Limited IPO Details:

Open Date: Sep 09 2024
Close Date: Sep 11 2024
Total Shares: 5,736,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 20.65 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 16 2024

Promoters And Management:

Mr. Ashok Monsara, 57, was appointed as Managing Director on August 16, 2023, for a 5-year term. With over 20 years of experience in the cotton and commodities business and more than 30 years as an entrepreneur, he has successfully established retail super malls and is a key regional player. Since joining Gajanand International Limited (formerly Gajanand Cottex Private Limited) in 2009, he has led the company to success in the cotton manufacturing ginning industry. His extensive experience positions him to continue driving the company’s growth and expansion. Mrs. Trupti Monsara, a graduate with over 15 years of experience in textile marketing, leads the company’s business promotion, sales, and marketing efforts. Her expertise has consistently elevated the company's marketing standards. Beyond her professional role, she is committed to women’s empowerment, actively promoting gender diversity by employing and supporting women in the workforce. Mrs. Monsara’s leadership not only drives market success but also fosters a culture of empowerment and equality, reflecting her dedication to both business excellence and social responsibility. Dr. Ashish Dhirajlal Monsara, a consulting homeopath with a B.H.M.S degree and a C.9.0 rating, has 13 years of experience specializing in treating chronic diseases of the GIT, joints, respiratory system, and skin. Since joining the company as a promoter in its foundation year, 2009, Dr. Monsara has played a key role in overseeing the marketing department and securing customer deals, while continuing to provide dedicated healthcare services at his clinic.

Financials of Gajanand International Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 6,174 7,336 10,866
Other Income 2 6 9
Total Revenue 6,176 7,342 10,875
Cost of material Consumed 5,495 5,945 1,644
Purchases of Traded Goods 632 1,035 9,793
Changes in inventories -121 24 -1,029
Employees Benefit Expenses 18 16 21
Other Expenses 27 42 31
EBITDA 126 280 413
OPM (%) 2.04% 3.82% 3.80%
Depreciation & Amortisation 9 10 10
EBIT 118 270 403
Finance Cost 114 82 102
PBT 4 188 301
Tax 1 47 77
PAT 3 141 224
NPM (%) 0.05% 1.92% 2.06%
No.of Shares 188.35 188.35 188.35
EPS 0.01 0.74 1.18

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Gajanand International Limited 109 2 1.18 30.3 36 68
Laxmi Cotspin Limited 144 0 -0.14 N/A 41.5 71
Spright Agro Limited 72 12 0.22 130.0 42.9 2,298
* All the data is as per FY24.

Recommendation on Gajanand International Limited IPO:

1. Gajanand International Limited is specializing in high-quality cotton production, including varieties such as Mech1 and Shankar6 Cotton. The company operates advanced manufacturing units equipped with modern machinery for ginning, quality inspection, storage, and packing. 2. SWOT Analysis Strengths: i. Significant installed capacity of 37,500 MT annually. ii. Strategic location advantage. iii. Increasing scalability and captive consumption. Weaknesses: i. Seasonal availability of products and raw materials. ii. Dependence on suppliers for raw material availability. Opportunities: i. Potential for growth in both domestic and international markets. ii. Government initiatives aimed at boosting the textile industry. Threats: i. Intense market competition. ii. Fluctuations in market trends and demands. 3. Industry Competition India is a leading global producer of cotton, with major production centers in Telangana, Gujarat, Maharashtra, and Andhra Pradesh. The textile industry, which is a significant consumer of cotton, drives demand in these regions. Well-established textile businesses in states like Gujarat, Maharashtra, and Tamil Nadu further stimulate the demand for raw cotton. 4. Market Dynamics The cotton industry's dynamics are influenced by various factors, including climate conditions, global economic fluctuations, and governmental policies. 5. The Revenue has Increased from Rs.61 Crores in FY22 to Rs.108 Crores in FY24. 6. The EBITDA has Increased from 1 Crores in FY22 to 4 Crores in FY24. 7. The PAT has Increased from 3 Lakhs in FY22 to 2 Crore in FY24. 8. As per FY24, CFO/EBITDA is 0.99, and EPS is 1.18, 9. Market Capitalization is 68 Crores and P/E is 30.3x based on FY24.

Lead Manager of Gajanand International Limited IPO:

  1. Fast Track Finsec Private Limited

Registrar of Gajanand International Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Gajanand International Limited Survey No. 1257/1266, Jasdan-Atkot Roadnr. Bypass Circle, Jasdan, Rajkot - 360050 Phone: +91-99094 46110 Email: info@gajanand-int.com Website: https://www.gajanand-int.com/

Discussion on Gajanand International Limited IPO:

Leave a Reply