Jay Kailash Namkeen IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

Q: When will Jay Kailash Namkeen Ltd's IPO open for subscription?

The IPO subscription window will open on March 28, 2024 .

IPO Details

Bidding Dates

28 Mar '24 - 03 Apr '24

Minimum Investment

₹ 1,16,800 / 1 Lot ( 1600 Shares )

Price Range

₹70 - ₹73

Maximum Investment

₹ 1,16,800 / 1 Lot ( 1600 Shares )

Retail Discount

To be announced

Issue Size

₹11.93 Cr

Investor category and sub category

Qualified Institutional Buyers | Retail Individual Investors | Non-institutional Investor |

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Mar 28, 2024

Closing Date

Apr 3, 2024

Basis of Allotment

Apr 4, 2024

Initiation of Refunds

Apr 5, 2024

Credit of Shares to Demat

Apr 5, 2024

Listing Date

Apr 8, 2024

Cut-off time for UPI mandate confirmation

Apr 3, 2024

About Jay Kailash Namkeen Ltd

Jay Kailash Namkeen Ltd., founded in 2021, specializes in creating packaged Indian snacks. Their diverse range includes items such as Chana Jor Namkeen, Masala Chana Jor, Pudina Chana, and many others, spanning across a broad selection like Masala Mung Jor, Plain Mung Jor, Soya Sticks, and Haldi Chanas to name a few. This assortment extends to Chana Dal, Sev Murmura & Garlic Sev Murmura, Bhavnagari Gathiya, Sing Bhujia, Popcorn, Roasted Peanuts, among others, making up a total of 186 stock keeping units (SKUs) across 56 different products. These products are available in various sizes, ranging from ₹5 to ₹10 packets, and larger packs of 200 grams to 20 kilograms.

The company caters to a wide audience spread across numerous states in India, including Assam, Bihar, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, and Uttar Pradesh. Situated in Rajkot, Gujarat, Jay Kailash Namkeen's production site boasts the capability to produce 10 tons of snacks every working day.

As of the end of November 2023, the workforce at Jay Kailash Namkeen was made up of 14 permanent staff members and 35 hourly paid workers who are called upon as needed for production and dispatch tasks. Additionally, there are 6 individuals dedicated to marketing and sales roles, helping to promote the wide array of snack options available to their clientele.

Industry Outlook

India's food processing sector, pivotal in connecting farmers with markets, is projected to reach a valuation of $535 billion by 2025-26, showcasing significant growth potential.
The Ministry of Food Processing Industries (MoFPI) actively promotes investments, with the sector contributing 12.38% to employment in registered factories, employing around 1.93 million people.

Jay Kailash Namkeen Ltd IPO Details

Jay Kailash Namkeen Ltd IPO Dates

Jay Kailash Namkeen IPO is open from March 28, 2024 to April 3, 2024. The IPO will be listed on BSE SME.

Jay Kailash Namkeen Ltd IPO Price Band

Jay Kailash Namkeen is a book-built issue. The price band is set at ₹70 to ₹73 per share.

Jay Kailash Namkeen Ltd IPO Lot Size

The lot size for Jay Kailash Namkeen Limited’s IPO is 1,600 shares with a minimum investment of ₹1,16,800.

Jay Kailash Namkeen Ltd IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

The company plans to utilise ₹700 lacs for its operational needs, with ₹150 lacs in Fiscal 2024 and ₹550 lacs in Fiscal 2025.
Fund general corporate purposes; details are pending for specific allocation amounts.

Peer Details

The following are the listed peers of Jay Kailash Namkeen:

Annapurna Swadisht Limited
Prataap Snacks Ltd

How To Check the Allotment Status of the Jay Kailash Namkeen Ltd IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app.
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Jay Kailash Namkeen Ltd

Registered office: Deeva House, Fourth Floor, Diwanpara 11/12 corner, Rajkot City, Rajkot, Gujarat360001, India

Phone: 0281-2993110

E-mail: cs@jaykailashnamkeen.com

IPO Financials

Particulars	For the period Ended on November 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Total Income (in ₹ lakh)	646.19	987.74	1,043.12	1,314.81
EBITDA Margin (%)	11.61%	14.03%	11.32%	1.48%
Profit for the Year	40.45	88.79	54.58	8.81
PAT Margin (%)	6.32%	9.06%	6.81%	0.6702%
Cash & Cash Equivalents (in ₹ lakh)	161.95	216.59	24.75	15.33
Debt to Equity Ratio(x)	0.61	0.66	0.28	3.93
Return on Equity (%)	6.94%	24.72%	98.02%	30.99%
Return on Capital Employed	11.10%	31.9125%	139.51%	25.9403%
Earning Per Share (EPS)-in absolute ₹	1.22	3.03	1.89	3.10

Know before investing

Strengths

Offers 18 products, effectively catering to a wide consumer base by continuously adapting to market trends and Indian taste preferences through innovative snack options.
Established relationships with major clients, leading to repeat business and a competitive edge in expanding the client base and scaling the company's operations.
Utilises high-quality packaging materials ensuring product protection from environmental factors, extending shelf life up to 1 year for products, enhancing customer satisfaction and retention.

Risks

The company has experienced delays in statutory payments, including TDS (₹0.92 lakhs) and Income Tax (₹34.83 lakhs) for AY 2023-24, signaling potential liquidity challenges and compliance risks.
Transitioning to a B2C model since April 2022, the company faces the risk of failing to effectively build and manage a distribution network, crucial for brand establishment and sales.
With a capacity utilisation of 49.86% in 2021, dropping to 32.31% by November 2023, under-utilization of production capabilities, specifically operating only one out of two Fryer Machines, threatens profitability and operational efficiency.