Jeyyam Global Foods Limited IPO

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Jeyyam Global Foods Limited, initially incorporated as “Kichoni Online Services Private Limited” on March 24, 2008, began with a focus on collecting and selling data online. However, the company quickly pivoted to trading FMCG products after a change in its objectives was approved in July 2008. By September 2008, the company had commenced trading operations, and in June 2009, it was rebranded as “Jeyyam Products Private Limited.”

Further evolving its business focus, the company amended its objectives in February 2015 to include the manufacturing, processing, and trading of pulses, food grains, and related products, leading to another rebranding as “Jeyyam Global Foods Private Limited.” In May 2023, the company transitioned to a public limited entity, adopting its current name, “Jeyyam Global Foods Limited.”

Product Specialization and Market Presence With over 15 years in the food industry, Jeyyam Global Foods specializes in the manufacturing, processing, and supply of Bengal Gram (Chana), Fried Gram, and Besan Flour. The company serves a diverse market, including distributors, large retailers, hotels, restaurants, caterers, branded supermarkets, and wholesalers. Known for its commitment to quality, the “Jeyyam” brand has earned the trust and loyalty of its customers, distributors, and retailers through transparency and adherence to strict statutory norms.

Quality Standards and Certifications Jeyyam Global Foods places a strong emphasis on maintaining the highest quality standards across all operations, from procurement and processing to packaging. The company holds FSSAI licenses for its factory locations and adheres to ISO 9001:2015 and ISO 22000:2018 standards, with its Salem factory being ISO certified.

Innovation and Future Growth The company is actively engaged in research and development and is poised to expand into the B2C market with products such as spices, ready-to-cook and ready-to-eat foods, salt, sugar, soya, and vermicelli. With deep expertise in the chana industry, Jeyyam is dedicated to becoming a pan-India brand in this sector. The company has successfully established a forward and backward integration model in the chana value chain, enhancing value for all stakeholders in the ecosystem.

Brand Vision Jeyyam Global Foods is synonymous with quality, trust, and innovation. The company’s strategic focus on the chana industry, coupled with a strong supply chain and a dedicated team, positions it as a leader in driving growth and transformation within this sector.

Objects of the Jeyyam Global Foods Limited IPO:

The company proposes to utilize the funds towards the funding of the following objectives: i. Working Capital Requirements ii. Capital Expenditures iii. General Corporate Purposes Total number of share :- i. Fresh issue is 12,088,800 shares, ii. Offer for sale is 1,343,200 shares.
DRHP of Jeyyam Global Foods Limited IPO
RHP of Jeyyam Global Foods Limited IPO

Jeyyam Global Foods Limited IPO Details:

Open Date: Sep 02 2024
Close Date: Sep 04 2024
Total Shares: 13,432,000
Face Value: ₹ 5 Per Equity Share
Issue Size: 81.94 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 59 - 61 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 09 2024

Promoters And Management:

Mr. Amit Agarwal, 48, is a Promoter and the Managing Director of the company, having joined the Board on September 27, 2023, and taking the MD role on March 4, 2024. He holds a Bachelor’s degree in Polymer Engineering from Maharashtra Institute of Technology, Pune. In addition to leading the company, he serves as a Director and Partner in various organizations. His leadership and ability to anticipate market trends, combined with his financial expertise, have been key to driving success in industries like Manufacturing and Real Estate. Mr. Shripal Veeramchand Sanghvi, 49, is a Promoter and the Whole-Time Director of the company, joining the Board on May 28, 2020, and assuming his current role on March 4, 2024. With over 30 years of experience in the tobacco industry and 15 years in the FMCG sector in South India, he has significantly contributed to the growth of the organizations he's associated with. He is the proprietor of S S Marketing and Shanti Guru Tobacco, and a promoter of Shanti Guru Industries Limited, a listed company. His strengths lie in strategic thinking, financial expertise, and dedication to innovation. Mrs. Sujathaa Mehta, 50, is a Promoter and Non-Executive Director of the company. She holds a bachelor’s degree in economics from Ethiraj College. In addition to her role in the company, she serves as a Director and Partner in several organizations, where her collaborative approach and entrepreneurial spirit have driven growth across industries such as manufacturing, fashion, pharma, and renewable energy. Her strengths lie in her ability to adapt to market dynamics and her unwavering commitment to excellence.

Financials of Jeyyam Global Foods Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 25,388 38,217 62,981
Other Income 0 4 2
Total Revenue 25,388 38,221 62,983
Cost of material consumed 22,113 34,691 55,586
Change in Inventories 113 -515 1,270
Employees Benefit Expenses 835 909 1,070
Other Expenses 1,175 1,431 1,763
EBITDA 1,152 1,705 3,295
OPM (%) 4.54% 4.46% 5.23%
Depreciation & Amortisation 218 250 469
EBIT 934 1,455 2,826
Finance Cost 353 407 824
PBT 581 1,047 2,002
Tax 145 260 492
PAT 437 787 1509
NPM (%) 1.72% 2.06% 2.40%
No.of Shares 474.96 474.96 474.96
EPS 0.91 1.65 3.17

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Jeyyam Global Foods Limited 630 15 3.17 19.2 61 290
Sameera Agro and Infra Limited 182 11 9.00 13.8 124 148
* All the data is as per FY24.

Recommendation on Jeyyam Global Foods Limited IPO:

1. Jeyyam Global Foods Limited has established itself as a leader in the manufacturing, processing, and supply of Bengal Gram (commonly known as 'Chana'), Fried Gram, and Besan Flour. 2. They cater to a diverse market that includes distributors, large retailers, hotels, restaurants, caterers, branded supermarkets, and wholesalers. Jeyyam is well-positioned to become a pan-India brand, leveraging their deep expertise in the Chana industry. 3. Product Portfolio: i. Bengal Gram (Chana)              ii. Fried Gram iii. Besan Flour 4. SWOT Analysis: Strengths: i. Focused Expertise                                    ii. Advanced Manufacturing Technology iii. Supply Chain Mastery                            iv. Experienced Management v. Continuous R&D Weaknesses: i. Bulk Sales Dependency                           ii. Market Competition iii. Government Price Controls                  iv. Product Range Limitation Opportunities: i. Lifestyle Changes                                     ii. E-commerce Growth iii. Pan-India Expansion Threats: i. Intense Competition                                ii. Raw Material Cost Volatility iii. Regulatory Challenges 5. Competitive Landscape: The food industry they operate in is characterized by intense competition from both small and medium-sized companies as well as a few large enterprises that dominate the market. 6. The Revenue has Increased from Rs.254 Crores in FY22 to Rs.630 Crores in FY24. 7. The EBITDA has Increased from 11 Crores in FY22 to 33 Crores in FY24. 8. The PAT has Increased from 4 Crores in FY22 to 15 Crores in FY24. 9. As per FY24, CFO/EBITDA is 1.01, and EPS is 3.17, 10. Market Capitalization is 290 Crores and P/E is 19.2x based on FY24.

Lead Manager of Jeyyam Global Foods Limited IPO:

  1. Corpwis Advisors Private Limited

Registrar of Jeyyam Global Foods Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Jeyyam Global Foods Limited No.37 (Old No.19), Padmavathiyar Road, Gopalapuram, Chennai � 600 086 Phone: 044-4505 4101 Email: info@jeyyamfoods.in Website: http://www.jeyyamfoods.com/

Discussion on Jeyyam Global Foods Limited IPO:

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