Tapi Fruit Processing Limited IPO

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i. Tapi Fruit Processing has over the years leveraged our understanding of our target markets and consumer segments, product innovation capabilities, extensive distribution network, and strategically located manufacturing facilities, and has focused the marketing and promotional activities to strengthen their product brands and establish the brands across India.

ii. Their diversified product portfolio includes three categories:

  • Candied, Crystallised and Glazed Fruit and Vegetable Products (“Candied Fruit”): These products are made out of 100% fruits and vegetables cooked in sugar syrup. The products under this category includes tooty fruity, karonda cherry, amla candy. We sell these products under our brand “Tapi”, “MumMum” and “Boleto”
  • Fruit Bar, Jellies, Fruit Jam & Fruit Leathers (“Fruit Jellies”): A product made out of natural fruit pulps dried and shaped in to roll form or bar forms. The products under this category includes mango fruit rolls, tamarind bars etc. These are fruit jellies made from sugar, glucose, pectin along with fruit pulps added with flavours and colors.
  • Chutney & Sauces: In this category the company sell Ketchup made from tomato paste under our brand “Tapi”.
  • Beverages: Under this category, the product includes fruit crush and fruit syrups.
  • Nutraceutical Products: Tapi manufacture herbal base nutraceutical products as gummies, fortified with minerals as a functional food. These products are available as multi vitamin gummies, etc.

iii. All the products are manufactured in-house at Tapi’s manufacturing facilities located in Pipodara village, Distt. Surat, Gujarat, which enables it to have an effective control over the manufacturing process and to ensure consistent quality of its products.

iv. Competitive Strengths :

  • Wide spread and established sales and distribution network.
  • Diversified Product Portfolio.
  • Experienced promoter and management team.

Objects of the Tapi Fruit Processing Limited IPO:

The Net Proceeds from the Issue are proposed to be utilized by the Company for the following objects: i. Meeting incremental working capital requirements ii. Repayment/prepayment of certain borrowings availed by the Company iii. General corporate purposes
DRHP of Tapi Fruit Processing Limited IPO

Tapi Fruit Processing Limited IPO Details:

Open Date: Sep 12 2022
Close Date: Sep 14 2022
Total Shares: 1,086,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 5.21 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 48 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 22 2022

Promoters And Management:

i. Ghanshyambhai Laljibhai Lukhi, aged 47 years, is a Promoter and Managing Director of the Company since incorporation. He possesses Bachelor’s Degree in Science from South Gujarat University, Master’s Degree in Organic Chemistry from South Gujarat University and Bachelors Degree in Law (General) from The Heer Narmad South Gujarat, Surat. The history and lineage traces back to Mr. Ghanshyam Laljibhai Lukhi, who savored the flavor of tooty fruity, a candy that is made out of raw papaya to start his business under the name of “Tapi Food Products” a sole proprietorship firm, in the year 1999 and a founding member of the Company. He has over 25 years of experience in the food processing industry. At the Company, he has played a pivotal role in the growth and development of the Company and is responsible for creating the overall vision of the Company and is actively involved in all techno-commercial departments ii. Ashokkumar Laljibhai Lukhi, aged 46 Years, is a Promoter and Whole-Time Director of the Company since incorporation. He possesses a Bachelor of Commerce Degree from University of South Gujarat in 1998 and Bachelor of Law Degree from University of The Heer Narmad South Gujarat in 2012. He presently runs a sole proprietorship firm under the name ““Lukhi & Associates” carrying the business of Finance. He is currently looking after all the financial and strategic matters of the company. iii. Yash Ghanshyambhai Lukhi, aged 23 years, is an Executive Director of the Company since June 22, 2022. He has completed his graduation in Bachelor of Technology (Food Technology and Management) in 2021 from National Institute of Food Technology Entrepreneurship and Management, Delhi. He has joined our Company as a Head - Business Development since April 2020. He is currently responsible to look after Research and Development and Business Development of our Company.

Financials of Tapi Fruit Processing Limited IPO:

Particulars (in Cr) March 22 March 21 March-20
Revenue from operations 15 13 11
Cost of Material Consumed 9.99 7.75 7.17
Gross Margins 33.40% 40.38% 34.82%
Purchase of Traded Goods 0.12 0 0
Employee Benefit Expense 1.79 1.72 1.41
Other Expense 2.33 2.64 1.99
Operating Profit 0.77 0.89 0.43
OPM% 5.13% 6.85% 3.91%
Finance Cost 0.4 0.43 0.47
Depreciation 0.6 0.47 0.44
No. of Shares 0.4 0.4 0.4
Profit (Loss) for the period 0.15 0.10 -0.0086
EPS 0.4 0.3 0.0

Recommendation on Tapi Fruit Processing Limited IPO:

Review and Recommendation of Tapi Fruits Processing Limited IPO is 4/10 1. The history of the company traces back to Mr. Ghanshyam Laljibhai Lukhi, who savored the flavor of tooty fruity, a candy that is made out of raw papaya to start his business under the name of “Tapi Food Products” a sole proprietorship firm, in the year 1999. 2. They have products like Candied, Crystallised and Glazed Fruit and Vegetable Products, Fruit Bar, Jellies, Fruit Jam & Fruit Leathers, Chutney & Sauces, Beverages, and Nutraceutical Products. 3. All the products are manufactured in-house at the manufacturing facilities located in Surat. 4. They have well established distribution network to distribute the products across 28 states and Union Territories in India, through its widespread network of 60 super-stockist. 5. Revenue has increased from 11 Crores to 15 Crores in the last 3 years. 6. PAT has increased from a loss of 0.86 lacs in Fy20 to 15.60 lacs in Fy22. 7. EPS of Fy22 is 0.4 and at a price of Rs. 48 per share, the asking P/E is 120x which looks highly over priced. 8. In the last 3 years, the company has done a capex of 2.91 Crores and mostly done from internal accrual. 9. Current debt on books is Rs. 5.33 Crores.

Lead Manager of Tapi Fruit Processing Limited IPO:

  1. Fedex Securities Limited

Registrar of Tapi Fruit Processing Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Tapi Fruit Processing Limited Office No. - 212 to 214, Sunrise Chambers, Near Ashok Colony, Mini Bazar, Varachha Road, Surat - 395006 Phone: 9825503717 Email: cs@tapifood.com Website: https://www.tapifood.com/

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