Grill Splendour Services Limited IPO

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The business overview provided outlines a comprehensive and strategic approach towards establishing a strong foothold in the gourmet bakery and patisserie sector within Mumbai, showcasing a blend of traditional values and modern business practices. Grill Splendour Services Private Ltd., having acquired the Birdy’s Bakery and Patisserie brand, illustrates a successful endeavor in revitalizing and expanding a well-established brand with deep roots in hospitality and quality confectionery products.

Business Structure and Strategy

  • Expansive Retail Presence: With 17 retail stores across Mumbai, including 5 franchisee-owned but company-operated outlets, the business demonstrates a hybrid model that leverages both direct ownership and franchising for expansion and brand presence. This model allows for a broader reach and operational flexibility.
  • Centralized Production Facility: The centralization of production ensures consistent quality across all outlets, which is crucial for maintaining brand integrity and customer satisfaction. This strategic move also allows for efficiencies in cost and supply chain management.
  • Corporate Clientele: Serving multiple corporate clients indicates a diversification of revenue streams beyond retail sales, contributing to the business’s resilience and growth potential.

Product Offering

  • Diverse Product Range: The business offers a wide array of products, including cakes & pastries, food sales, beverages, and dessert sales. This variety meets a broad spectrum of customer needs and preferences, from traditional favorites to customized orders.
  • Quality Focus: The emphasis on quality, stemming from the brand’s origins as “Birdy’s by Taj,” speaks to the commitment to maintaining high standards in product offerings. This focus is crucial for customer retention and attracting a discerning clientele.

Conclusion and Outlook

Grill Splendour Services Private Ltd.’s strategic approach to acquiring, revitalizing, and expanding the Birdy’s Bakery and Patisserie brand is a testament to its robust business model and market acumen. The combination of a widespread retail network, a centralized production facility, and a diversified product range positions the company for sustained growth and success in the competitive hospitality sector. The leadership’s extensive experience and strategic initiatives have successfully reinstated the brand’s quality and reputation, laying a strong foundation for future endeavors. This business overview not only highlights the company’s current achievements but also its potential for expansion and innovation in the bakery and patisserie industry.

Objects of the Grill Splendour Services Limited IPO:

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: i. Funding additional Working capital requirements; ii. Pre-payment/Repayment, in full or part, of certain outstanding borrowings availed by the Company; and iii. General Corporate Purposes
DRHP of Grill Splendour Services Limited IPO
RHP of Grill Splendour Services Limited IPO

Grill Splendour Services Limited IPO Details:

Open Date: Apr 15 2024
Close Date: Apr 18 2024
Total Shares: 1,372,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 16.47 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 120 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 24 2024

Promoters And Management:

Srinidhi V Rao, aged 53 years is the founding promoter and director on the board of the Company since incorporation is redesignated as Managing Director w.e.f. July 01 2023. He has done Diploma in Hotel Management from National Council for Hotel Management and Catering Technology, New Delhi. Srinidhi has worked in the past with brands such as Taj group of Hotels, Indage Hotels, Mayfair Banquets, Daman Hospitality, Smaaash Entertainment, Barista coffee in various positions. He has more than three decades experiences in operations, projects and training, which has enabled him to set systems for a smooth and organized expansion of their business. Vandana Srinidhi Rao, aged 52 years is the founding promoter and director on the board of the Company since incorporation is redesignated as Executive Director w.e.f. July 01, 2023. She has done Diploma in Hotel Management from National Council for Hotel Management and Catering Technology, New Delhi. She has also passed Semester I for Diploma in Sales and Marketing Management from Narsee Monjee Institute of Management Studies (Deemed University), Mumbai. Vandana is a hospitality professional with a varied gamut of experience of over 30 years. She has worked in hotels, travel, sales, training and in brand consulting sector. She will be driving the customer focused brand expansion of various formats. Her experience in customer knowledge will enable the company to design its offerings to delight the customers. Vivek Vijaykumar Sood aged 58 years is the director on the board of the Company and is designated as Non-Executive Director w.e.f. June 27, 2023. He is a Bachelor of Commerce from University of Jammu passed in 1990. He has also passed Group M-1 of Marketing & Sales Management from Bhavan’s College of Communication & Management, Baroda. He has more than 3 decades of experience of doing project related work for infrastructure companies. At GSSL, he is guiding the board in execution of new initiatives of the Company due to his long standing experience in handling projects in his business.

Financials of Grill Splendour Services Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
8M-FY24
Revenue from Operations 825 1,150 1,529 884
Other Income 0.7 2 2 2
Total Revenue 825 1,152 1,532 886
Cost of materials consumed 252 355 411 276
Employees Benefit Expenses 199 254 294 154
Other Expenses 361 517 536 345
EBITDA 13 26 291 110
Depreciation & Amortisation 6 12 16 10
Finance Cost 10 11 23 21
EBIT 6 14 274 100
OPM (%) 1.54% 2.29% 18.97% 12.46%
PBT -4 3 251 79
Tax 0 0 52 18
PAT -4 3 199 62
NPM (%) -0.44% 0.30% 13.00% 6.96%
No.of Shares 52.08 52.08 52.08 52.08
EPS -0.07 0.06 3.82 1.18

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Grill Splendour Services Limited 15 2 3.82 31.4 120 62
Westlife Foodworld Limited 2,278 112 7.16 145.0 822 12,814
Sapphire Foods India Ltd 2,266 233 36.73 52.2 1,520 9,682
Jubilant Foodworks Limited 5,158 353 5.35 135.0 450 29,700
* All the data is as per FY23.

Recommendation on Grill Splendour Services Limited IPO:

Review and Recommendation of Grill Splendour Services by team IZ is 4/10. 1. Grill Splendour Services Private Ltd., established in November 2019, marks its presence in the bakery and confectionery industry through the acquisition of Birdy’s Bakery and Patisserie from WAH Restaurants Private Limited. This strategic move was materialized through a Business Transfer and Intellectual Property Assignment Agreement on December 27, 2019. The acquisition aimed at revitalizing and expanding the Birdy’s brand, a task the company has embarked on with dedication. 2. The company's retail infrastructure spans across Mumbai with 17 outlets, out of which 5 operate under a franchisee model (franchisee-owned, company-operated), and the remaining 12 are company-owned. These stores serve a wide array of products including cakes, pastries, food items, beverages, and desserts. The company has detailed its franchise agreement, locations, and financial metrics related to its franchise and owned stores in its prospectus, underscoring its transparent operational ethos. 3. Future Outlook and Challenges As the market continues to evolve, Grill Splendour anticipates encountering heightened competition, including potential new entrants with substantial resources and established business networks. The company acknowledges the need for continuous innovation, strategic management expansion, and capital investment to navigate through these challenges and capitalize on market opportunities effectively. 4. Competitive Landscape The Indian bakery and confectionery market is characterized by a blend of FMCG giants like Britannia, Parle, and ITC, alongside retail ventures such as Theobroma. The market dynamics shifted significantly post-COVID-19, transitioning from a walk-in customer base to a delivery-centric model. Grill Splendour operates within this competitive milieu, focusing on product quality, pricing strategies, and operational efficiency to secure its market position. Despite facing competition from well-established and possibly better-financed players, Grill Splendour's strategy revolves around aggressive sales and marketing efforts, cost optimization, and operational enhancements to maintain and expand its market share. 5. The Revenue has Increased from Rs.8 Crores in FY21 to Rs.15 Crores in FY23. 6. The EBITDA has Increased from 13 Lakhs in FY21 to 3 Crores in FY23. 7. The PAT has Increased from (-4) Lakhs in FY21 to 2 Crore in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 1.77, 9. Market Capitalization is 62 Crore & P/E is 67.58x based on FY24.

Lead Manager of Grill Splendour Services Limited IPO:

  1. Inventure Merchant Banker Services Private Limited

Registrar of Grill Splendour Services Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Grill Splendour Services Limited J1, Shram Siddhi Vinayak Premises Co-Op Soc Ltd C1 1st Floor, Plot - 8, Wadala Truck Terminal Road, , Antop Hill, Mumbai - 400 037, Phone: +91 22 5002 9517 Email: ipo@birdys.in Website: https://www.birdys.in/

Discussion on Grill Splendour Services Limited IPO:

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