Magson Retail And Distribution Limited IPO

Apply 0
Avoid 0

i. The company is engaged in the retail and Distribution business of gourmet, frozen food and speciality foods. Company has its corporate office located in Ahmedabad, Gujarat. Following is the detail about the companies retail and distribution business.

ii. Retail Business 

Currently company operates 26 retail stores/outlets of which 16 are operated by the company and 7 are operated by franchise owners and 3 stores are operated under 2 joint ventures, MRDL operates all its stores under the registered brand name “MagSon”. The said stores/outlets are located across Western India with 26 outlets in prominent cities which includes one each in Thane, Maharashtra, Udaipur, Rajasthan, Gandhinagar, Gujarat, Anand, Gujarat, Rajkot, Gujarat, Jamnagar, Gujarat and Gandhidham, Gujarat. Three store each in Surat, Gujarat, Vadodara, Gujarat and thirteen stores/outlets in Ahmedabad (including one chocolate store). The total retail space of 26 outlets/stores is more than 30,000 sq.ft. with total stock (SKU) count in store being more than 3000 units.

iii. Business under own Brand RF Gourmet 

In December 2021 they launched  Rf Gourmet the own brand having a  range of premium products such as French Fries, Fiery Fries, Chilli Garlic Potato Shots, Delhi Aloo Tikki, Veggie Burger Tikki, Chunky Fries, Eggs and a range of Chicken Seekh Kababs. All the products in this brand are sourced from top vendors ensuring premium quality and then are packed marketed by Magson under this Brand. All the products under this brand are introduced after analysing the prevailing market gap and increasing demand for the products. Under expansion plan they will be doing packing of RF Gourmet product in the godown as part of backward integration. The said strategy of Backward Integration will help us in increasing the margins from distribution business and in long run it will help us to develop core competence.

iii. Distribution Business   

With regard to distribution business of MRDL, company has on rent a warehouse of more than 14,000 sq.ft. in Ahmedabad, Gujarat from where it manages its inventory. MRDL procures 75% of the products directly from the manufacturers thereby eliminating the middle men which enable the company to earn higher margins. Other 25% is supplied directly from other distributors/wholesalers.

Product Offerings

  • Frozen food Vegetarian and Non vegetarian
  • Premium Cheese and Dairy products
  • Exotic Vegetables and fruits
  • Ambient Products
  • Imported/ luxury Chocolates
  • Imported packed products

Competitive Strengths

i. Unique Shopping Experience
ii. Wide Product Mix
iii. Strong Distribution Network
iv. Investment in Software/ technology/ Mobile App for online shopping

Objects of the Magson Retail And Distribution Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To set up new organizations and stores under a franchise model & tie up with major suppliers, ii. Working Capital Requirement, and iii. General Corporate Purpose.

Magson Retail And Distribution Limited IPO Details:

Open Date: Jun 23 2023
Close Date: Jun 27 2023
Total Shares: 2,114,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 13.74 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 65 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 06 2023

Promoters And Management:

i. Mr. Rajesh Emmanuel Francis, 49 years having 20+ years of experience in the Advertising, Banking, Restaurant and Retail sector. He is the Managing Director and handles Business Development and Finance department in MagSon. ii. Mr. Manish S. Pancholi, 53 years old is the co‐founder of MagSon. Along with Mr. Francis, Mr. Manish is the finance partner and has been the backbone of MagSon since its inception. iii. Mr. Kavin Dineshkumar Dave is a founder of K. D. Dave & Co., Chartered Accountants. He is a member of The Institute of Chartered Accountants of India and has qualified as a Chartered Accountant after graduation from Mumbai University in 1995. He has studied commerce from Narsee Monjee (N.M.) College of Commerce & Economics, Vile Parle (W), Mumbai

Financials of Magson Retail And Distribution Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 1.00 1.00 573.60
Reserves 350 573 353
Borrowings 387 345 322
Trade Payables 350 266 344
Other Liabilities 197 310 408
Total Liabilities 933 921 1,074
Net Block 238 474 475
Capital Work in Progress 0 0 4
Investments 0 0.3 0.3
Other Assets 140 87 91
Total NC Assets 377 561 570
Receivables 109 137 141
Inventory 641 612 966
Cash & Bank 25 20 85
Other Assets 132 166 237
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 5,356 5,554 6,282
Purchases of Stock In Trade 4,259 3,808 4,784
Change in Inventory ‐255.33 29 ‐354.91
Employee Cost 457 549 576
Other Expenses 526 790 829
Other Income 3 12 20
EBITDA 372 390 468
EBITDA Margin 6.93% 7.01% 7.45%
Depreciation 60 64 70
Interest 68 71 62
Profit before tax 244 307 336
Tax 62 84 85
Net profit 182 223 252
NPM (%) 3.39% 4.01% 3.99%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 374 384 461
Receivable ‐29.74 3 ‐04.12
Inventory ‐255.33 25 ‐354.91
Loans And Advances ‐103.74 ‐40.20 ‐75.34
Other WC Items 232 6 141
Working Capital Changes 232 33 141
Direct Taxes ‐63.72 ‐68.69 ‐71.06
Net Cash Inflow from Operating Activity 153 308 96
Cash from Investing Activity
Fixed assets purchased ‐225.89 ‐293.64 ‐75.47
Fixed assets sold 31 93 0
Net cash inflow from investing activities ‐195.32 ‐201.08 ‐75.47
Cash from Financing Activity
Proceeds from shares 0 0 129
Proceeds from borrowings 33 0 35
Repayment of borrowings 0 -42 -58
Intrest paid fin ‐60.03 ‐70.87 ‐61.56
Net Cash Flow ‐69.75 ‐05.43 66

Comparison With Peers:

* There are no listed companies that is engaged in similar line of that Company *

Lead Manager of Magson Retail And Distribution Limited IPO:

  1. ISK Advisors Private Limited

Registrar of Magson Retail And Distribution Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Magson Retail And Distribution Limited 204-B, Primate Complex, Opp. Mother Milk Palace, Nr. Judges Bungalows Cross Roads, Bodakdev, Ahmedabad - 380015 Phone: +91 9978607507 Email: Website

Discussion on Magson Retail And Distribution Limited IPO:

Leave a Reply