Jetmall Spices and Masala Limited IPO

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Jetmall Spices & Masala Private Limited was incorporated on 06.09.2012 in Chennai, Tamil Nadu, and changed its name to Jetmall Spices & Masala Limited vide a fresh certificate of incorporation on 29.01.2020. Before the incorporation of this company, a Proprietorship Concern in the name of JETMALL SUKANRAJ was established in the year 1947 and was managed by Mr. Pukhrajji, father of Mr. Bharat Kumar Pukhrajji promoter of the Company. In all those years, the business was mainly pertaining to trading in Spices and dry fruits. Jetmall Brand was launched in the year 2012.

Jetmall Spices & Masala Limited is incorporated to carry on trading and marketing of food products, ready to eat foods, food grains, spices, dry fruits, nuts, ready to cook foods, food ingredients, and processed foods. It imports spices and supplies them in India in bulk quantities. The company’s major imports are from Vietnam, Srilanka, and Indonesia. The company basically works on the B2B model where it maintains stocks and distributes them to different institutional parties like Masala manufacturers, Exporters, Etc.

Competitive Strengths

i. Quality & Transparency
ii. Modern Techniques And Innovation
iii. Experienced And Professional Team
iv. Long Standing Relationship With Clients

 

Objects of the Jetmall Spices and Masala Limited IPO:

The company is raising funds from the IPO for the following purpose. (i) Setting up of 10 new Retail Outlets = 1.65 Crores (ii) Working Capital Requirements = 2 Crores (iii) General Corporate Purposes = 0.85 Crores (iv) Issue Expenses = 0.48 Crores
DRHP of Jetmall Spices and Masala Limited IPO

Jetmall Spices and Masala Limited IPO Details:

Open Date: Mar 31 2021
Close Date: Apr 07 2021
Total Shares: 24,90,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 4.98 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 19 2021

Promoters And Management:

(i) Mr. Bharat Kumar Pukhrajji Aged 56 years, is a Promoter and Chairman & Managing Director of the Company. He is an Undergraduate. To enhance the visibility and go for a pan-India market, he incorporated this company. He possesses an experience of more than 26 years of in Trading and marketing Spices and dry fruits. He has a wide knowledge of advertising and promotional activities of the company. (ii) Mr. Jatin Pandya Aged 53 years, is an Executive Director and Chief Financial Officer of the Company. He is an undergraduate., he was looking after the financial affairs of the Company. He is having experience of more than 24 years in Finance, Trading, and Marketing of Spices and dry fruits. With his vast experience, he plays an important part in the working of the Company. (iii) Mrs. Roopal Shreyans Lodha Aged 28 years, is a Non-Executive and Independent Director and was appointed on the Board on November 30, 2020. She holds a Bachelor‘s degree in B.Com from the University of Madras. (iv) Mr. Ankit Vimalchand Choradia Aged 25 years, is a Non-Executive and Independent Director and was appointed on the Board on December 09, 2020. He holds a Bachelor‘s degree in Bank Management from the University of Madras. He is having more than 4 years of experience in Finance.

Financials of Jetmall Spices and Masala Limited IPO:

Particulars(in Cr) Mar-18 Mar-19 Mar-20
Sales 50 43 40
Purchase of stock in trade 45 43 34
Change in Inventory 1.17 -2 1.24
Employee expense 0.81 0.61 0.92
Other Expenses 1.5 0.68 0.95
Operating Profit 1.52 0.71 2.89
OPM % 3.04% 1.65% 7.23%
Other Income 0 0 0
Interest 0.88 0.82 0.83
Depreciation 0.03 0.03 0.0275
Profit before tax 0.36 0.24 0.2
Net Profit 0.25 0.17 0.14
No. of shares 0.5292 0.5292 0.5292
EPS in Rs 0.47 0.32 0.26

Comparison With Peers:

The company do not have any peer in the listed segment.

Recommendation on Jetmall Spices and Masala Limited IPO:

Review and Recommendation of InvestorZone are 3/10 1. The asking valuation is very high. P/E of 57x. 2. Revenue is in declining mode. Despite declining revenue, the employee benefit expense is keep on rising. 3. RONW (FY20) is just 3.07%. This is less than FD returns.

Lead Manager of Jetmall Spices and Masala Limited IPO:

  1. Mark Corporate Advisors Private Limited

Registrar of Jetmall Spices and Masala Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

87A, Govindappa Naicken Street, Sowcarpet, Chennai-600 001, Tamilnadu, India

Discussion on Jetmall Spices and Masala Limited IPO:

2 Comments

    Motives of the Issue:

    Setting up 10 new retail outlets.
    To meet the company’s working capital requirements.
    General corporate purposes.
    To meet issue expenditures.

    Reply

    Competitive strengths

    Premium quality spices and masala.
    Strong packaging and logistic infrastructure.
    Experienced management.
    Customer loyalty.

    Reply

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