Valencia Nutrition Limited IPO

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About the Company

The Company is an applied biotechnology startup operating in the niche field of researching, developing & marketing high quality, best-in-class nutraceutical products i.e. multi-nutrient functional beverages to prevent and/or manage lifestyle-related diseases.

Nutraceuticals might be defined as substances that have physiological benefits or provide protection against chronic diseases. Nutraceuticals may be used to improve health, delay the aging process, prevent chronic diseases, increase life expectancy, or support the structure or function of the body“.

Products of the Company:

a) Bounce Superdrinks’ is a low-calorie hydration drink range and is the flagship brand of the company. Bounce Superdrinks’ is manufactured under the brand name of ‘Bounce Super water ’in 6 flavors viz. perky peach, watermelon, zesty green apple, peppy pink guava, tangy orange, and litchi.

b) VitaMe Enriched Beverages’ are multi-nutrient drinks customized to meet gaps in the daily diet thereby offering loads of different nutrients in a ready-to-drink, low-calorie beverage format in four flavors.

The Company is bridging the increasing gap between demand & supply for healthy products with its healthy, nutritious & flavorsome drinks – ‘Bounce Superdrinks’ & ‘VitaMe Enriched Beverage’. They have been working in a most focused manner for the last 4 years to fully evolve a well-researched product and develop a niche brand within this nascent but high potential market.

Market Size and Opportunity

The nutraceutical market is segmented into functional foods, functional beverages, and dietary supplements. Globally, the nutraceutical market is predicted to record revenue of USD 671.30 billion by 2024, registering a CAGR of 7.5% during the forecast period (2019 – 2024). Globally, nutraceuticals are gaining importance and are becoming a part of the consumer’s daily diet. Looking at the current trends, the Indian nutraceutical market is forecasted to grow from a value of US$ 2.8 Billion in 2015 to a value of US$ 8.5 Billion by 2022. A functional beverage is an emerging segment of the Indian nutraceutical industry that was valued at US$ 0.3 Billion in 2015.

With wellness increasingly becoming a mainstream thought amongst the millennial population along with changing lifestyle preferences and people consciously taking preventive healthcare measures, nutraceuticals are expected to gain prolific growth in the years to come.

Objects of the Valencia Nutrition Limited IPO:

Offer for Sale( 1.23 Crores) The following shareholders are selling the shares in the IPO. a) Mr. Rajkumar Elango =1,17,000 Equity Shares b) Mr. Venu Gopal Nambiar =75,000 Equity Shares c) Mrs. Rachel Kattukaran =75,000 Equity Shares Fresh Issue( 6 Crores ) The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: a. Construction of New Corporate Office and Research Development & Pre Mix Laboratory Building called “Valencia House” at Anjanapura, Bengaluru. b. Purchase of Key Lab Equipments for expanding R&D facilities. c. Sales, Marketing and Distribution Expenses for increasing our brand value and improved geographical reach. d. General corporate purposes

Valencia Nutrition Limited IPO Details:

Open Date: Dec 23 2019
Close Date: Dec 27 2019
Total Shares: 1572000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed
Issue Size: 7.23 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 46 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 06 2020

Financials of Valencia Nutrition Limited IPO:

The company is continuously in a loss in the last 3 years. The topline is also not consistent. So nothing to look into.

Comparison With Peers:

As per RHP documents, VNL has no listed peers.

Recommendation on Valencia Nutrition Limited IPO:

Review and Recommendation of InvestorZone is: 1/10 [Loss-making company in the last 3 years. OFS is the biggest negative factor, especially in SMEs. The market in which the company works is highly competitive]

Lead Manager of Valencia Nutrition Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Valencia Nutrition Limited IPO:

  1. Bigshare Services Private Limited

Bid Details of Valencia Nutrition Limited IPO as on
27 Dec 2019 | 11:55:01 PM

Category No.of shares offered No. of shares bid
744,000 1,884,000
744,000 435,000
84,000 84,000
1,572,000 2,403,000
QIBs No
QIBs+HNIs Subscription 2.53X
Retail Subscription 0.58X
Total Subscription 1.56X

Discussion on Valencia Nutrition Limited IPO: