Birdy's IPO, valued at Rs 16.47 crores, consists of 13.73 lakh fresh shares and is offered at a fixed price of ₹120 per share. Subscription for the IPO begins on April 15, 2024, closing on April 18, 2024, with the allotment expected on April 19, 2024. It is set to list on NSE SME by April 23, 2024.
Retail investors must apply for a minimum of 1200 shares, requiring an investment of at least ₹144,000. HNIs are required to invest in a minimum of 2 lots (2,400 shares), totaling ₹288,000.
Inventure Merchant Banker Services Pvt Ltd is the book running lead manager, with Bigshare Services Pvt Ltd serving as the registrar. Rikhav Securities is the market maker for Birdy's IPO
The company proposes to utilize the Net Proceeds towards:
Listing will enhance the corporate image & visibility of the brand name, providing liquidity to the existing shareholders.
Grill Splendour Services IPO Details |
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IPO Date | April 15, 2024 to April 18, 2024 | ||||||||||
Listing Date | April 23, 2024 | ||||||||||
Face Value | ₹10 per share | ||||||||||
Price | ₹120 per share | ||||||||||
Lot Size | 1200 Shares | ||||||||||
Total Issue Size | ₹16.47 Cr | ||||||||||
Fresh Issue | 1,372,800 shares (aggregating up to ₹16.47 Cr) | ||||||||||
Offer for Sale | Nil | ||||||||||
Issue Type | Fixed Price Issue IPO | ||||||||||
Listing At | NSE SME | ||||||||||
Share holding pre issue | 3,835,400 | ||||||||||
Share holding post issue | 5,208,200 |
Grill Splendour Services IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 1200 | ₹144,000 | ||||||||
Retail (Max) | 1 | 1200 | ₹144,000 | ||||||||
HNI (Min) | 2 | 2,400 | ₹288,000 |
Grill Splendour Services IPO Timeline (Tentative Schedule) |
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IPO Open Date | Monday, April 15, 2024 | ||||||||||
IPO Close Date | Thursday, April 18, 2024 | ||||||||||
Basis of Allotment | Friday, April 19, 2024 | ||||||||||
Initiation of Refunds | Monday, April 22, 2024 | ||||||||||
Credit of Shares to Demat | Monday, April 22, 2024 | ||||||||||
Listing Date | Tuesday, April 23, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on April 18, 2024 |
Grill Splendour Services IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | - | ||||||||||
Market Maker Shares Offered | 69,600 (5.07%) | - | |||||||||
Other Shares Offered | 651,600 (47.47%) | - | |||||||||
Retail Shares Offered | 651,600 (47.47%) | - | |||||||||
Total Shares Offered | 1,372,800 (100%) | - |
Grill Splendour Services IPO Promoter Holding |
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Share Holding Pre Issue | 49.75% | ||||||||||
Share Holding Post Issue | 36.64% |
Grill Splendour Services IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
A chain of gourmet Bakery and Patisserie spread across Mumbai through 17 retail stores (5 franchisee owned and 12 are company operated), a centralized production facility and multiple corporate clients. The company offers fresh food products from traditional to ‘made to order’ as required by the Customers.
Incorporated in Nov’19 as a hospitality company to acquire the bakery and confectionary business along with brand Birdy’s Bakery and Patisserie from WAH Restaurants Private Limited. The company is engaged in the sale of Cakes & Pastries, Food Sale, Beverages, Desert Sales.
As a marketing strategy, the Company has reached out and acquired B2B clients viz. Barista, Trent House Bandra, Café Coffee Day, IBIS Hotels, Compass India, Wagh Bakri and MARS restaurants etc. to supply them various food products. As per Nov’23 this B2B segment holds approximately 37% of the revenue and rest 63% is held by B2C model.
The company is in the process of acquiring the brand rights for popular brands. It includes:
These brands have had a proven track record and enjoy good brand recall. They have a format of being medium sized and easy to scale.
India’s food service sector is one of the vibrantly growing segments, which has witnessed noticeable growth in past few years. The sector, including both organized and unorganized segments, stands at Rs. 4,23,865 crores in 2018-19. The sector is expected to reach US$ 79.65 billion by 2028, with a CAGR of 11.19%.
The country's restaurant and food service market are split into two segments, with the unorganized segment holding the lion's share of the market, & organized sector expanded rapidly between 2014 and 2020.
Quick service restaurant (QSR) is a restaurant which offers certain food items that require minimal preparation time and are delivered through quick services. Typically, quick service restaurants or QSRs cater to fast food items over a limited menu as they can be cooked in less time with the minimum possible variation. The market for which is predicted to be worth US$ 690.21 million in 2022 and US$ 1069.3 million in 2027, rising at a CAGR of 9.15%. according to the report's additional findings. The QSR chain market is anticipated to increase at a CAGR of 23% over the course of FY20–25, making it the fastest-growing sub-segment overall in the food service industry.
Deserts & Ice creams market is projected to grow at CAGR of 19% by 2022-23. The organized D&IC market in India was worth around Rs. 4,121 crores in 2018-19. The standalone format makes up 53% Rs. 2,188 crore and the chain store format contributed 47% Rs. 1,933 crores.
Risk associated to the business
No long-term with customers: The company generate retail sales by continuing relationships with customers as well as walk-in customers and no long- term contract with customers.
Deterioration in the performance of third-party delivery aggregators: The growth of online ordering and mobile applications, along with increasing number and growth of third-party delivery aggregators, have made delivery an important part of business, any fall in the performance quality of the delivery partner may hamper the growth of the company.
B2B operations are subject to high working capital: B2B business requires significant amount of working capital and major portion of working capital is utilized towards debtors and inventories.
Limited number of vendors: Top 10 vendors of the company subsequently hold approx. 50% of the purchases.
High Competition and Negative Publicity: Company compete on brand name recognition and reputation, customer satisfaction, quality of service etc. Some of the competitors are larger in terms of size of operations, having greater financial and marketing resources this gives an edge to them making better presence. Business is dependent on the trust our customers have in the quality of food and services of employees who serve them. Any negative publicity regarding quality of food or services, can affect the uptrend of the company.
Season Business: Revenue is subject to seasonal variations receiving higher revenues during September to December quarter due to festival seasons.
Limited to Geographic location: The company operates 100% in Mumbai, Maharashtra.
Period Ended | 30th Nov 23 | 31st Mar 23 | 31st Mar 22 | 31st Mar 21 |
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Reserve of Surplus | 1.11 | 2.00 | 0.01 | -0.03 |
Total Assets | 22.12 | 7.64 | 2.91 | 2.66 |
Total Borrowings | 14.94 | 3.00 | 1.35 | 0.97 |
Fixed Assets | 1.48 | 1.40 | 1.15 | 0.95 |
Cash | 0.73 | 0.99 | 0.08 | 0.07 |
Net Borrowing | 14.21 | 2.01 | 1.27 | 0.90 |
Revenue | 8.84 | 15.29 | 11.50 | 8.25 |
EBITDA | 1.10 | 2.91 | 0.26 | 0.13 |
PAT | 0.62 | 1.99 | 0.03 | -0.04 |
EPS | 1.61 | 1991.00 | 34.60 | -36.30 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 5.19 | ||||||||||
EPS Post IPO (Rs.) | 1.78 | ||||||||||
P/E Pre IPO | 23.12 | ||||||||||
P/E Post IPO | 67.58 | ||||||||||
ROE | - | ||||||||||
ROCE | - | ||||||||||
P/BV | 9.3 | ||||||||||
Debt/Equity | 1.5 | ||||||||||
RoNW | 12.46% |
Grill Splendour Services Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Grill Splendour Services Ltd. | 5.19 | - | - | 23.12 | 9.3 | 1.5 | 12.46% | ||||
Westlife Foodworld Ltd | 5.68 | 14.8% | 21.7% | 146 | 22.9 | 2.25 | 14.8% | ||||
Sapphire Foods India Ltd | 29.3 | 9.81% | 20.7% | 51.4 | 7.25 | 0.82 | 9.81% | ||||
Jubilant Foodworks Ltd | 3.34 | 16.2% | 18.1% | 135 | 14.3 | 1.25 | 16.2% |
GRILL SPLENDOUR SERVICES LIMITED
J1, Shram Siddhi Vinayak Premises Co-Op Soc Ltd C[1]105, 1st Floor, Plot - 8, Wadala Truck Terminal Road, Antop Hill, Mumbai - 400 037, Maharashtra
Tel: +91 22 5002 9517
E-mail: ipo@birdys.in
Website: www.birdys.in
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park, Andheri East, Mumbai - 400 093, Maharashtra, India
Tel. No.: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Grill Splendour Services Ltd. (GSSL), a prominent gourmet Bakery and Patisserie chain operating across Mumbai, showcases a mixed financial performance. Despite a profit surge in FY23, subsequent TTM figures for FY24 reveal a decline, with profits dropping from Rs. 1.99 Cr. to Rs. 0.93 Cr. Revenue also witnessed a downturn from Rs. 15.29 cr. to Rs. 13.26 cr. on a TTM basis. Of concern is the fivefold increase in borrowings, signaling potential financial strain.
Operational efficiency is evident through 17 retail stores and a centralized production facility, yet reliance on the franchisee model, particularly in a single state (Maharashtra), poses concentration risks. However, the company's focus on expanding its brand portfolio to boost revenue aligns with industry growth prospects, driven by increasing urbanization and lifestyle enhancements.
The IPO's pricing raises eyebrows, with potentially inflated earnings possibly aiming for aggressive valuations. The bonus allotment in May 2023 adds complexity to the valuation assessment. While the IPO is deemed slightly pricey, investors may adopt a cautious stance, awaiting post-listing developments to gauge the company's true potential and market reception.
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