Gajanand International Limited, founded in 2009, has grown to become a prominent name in the cotton industry. Located near the Bye Pass Circle at Atkot Road, Jasdan-360050, the company boasts a state-of-the-art manufacturing facility. This cutting-edge technology ensures that their cotton products are contamination-free and sustainable. Gajanand is well-regarded for its high-quality service and affordable pricing, making them a competitive player in the market. The company believes that its customers are its greatest teachers and places them at the core of its operations.

Gajanand International IPO Details

The company is launching an Initial Public Offering (IPO) with a fixed price issue totaling ₹20.64 Crores. The IPO consists entirely of a fresh issue of 57.36 lakh shares, priced at ₹36 per equity share. The subscription period for the Gajanand IPO begins on September 9, 2024, and ends on September 11, 2024. Allotment of shares is expected to be finalized on or around September 12, 2024, with the shares likely to be listed on the NSE SME by September 16, 2024.

Retail investors must invest a minimum of ₹108,000, which corresponds to a lot size of 3,000 shares. High-Net-Worth Individuals (HNIs) are required to invest in at least 2 lots (6,000 shares), totaling ₹216,000. FAST TRACK FINSEC PRIVATE LIMITED is the book-running lead manager, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED serves as the registrar. Nikunj Stock Broker Limited is the sole Market Maker for this IPO.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium for Gajanand International Limited IPO is estimated to range between ₹3 and ₹4. However, trading based on GMP is not reliable for accurate price discovery. GMP is highly speculative and depends on the demand and supply in the unorganized market. Investors are advised to consider GMP for informational purposes only.

As of September 10, 2024, at 12:24 PM, the live subscription status for the Gajanand IPO shows it has been subscribed 2.38 times on its second day of the subscription period. Investors can check the real-time subscription status on the NSE website.

IPO Allotment Status and Objectives

The IPO allotment date for Gajanand International is scheduled for September 12, 2024. To check the allotment status, investors can visit the registrar's website, select Gajanand International Limited IPO from the dropdown list, and enter their application number, PAN, or DP Client ID.

The proceeds from the fresh issue will be used for the following objectives:

₹1498.72 Lakhs to meet the working capital requirements of the company.

₹401.24 Lakhs for general corporate purposes.

To cover the issue expenses.

Financial Performance and Valuation

Gajanand International Limited has shown robust financial growth over the past years. Revenue increased from ₹6,176.21 Lakhs in FY22 to ₹10,874.81 Lakhs in FY24. EBITDA grew from ₹123.82 Lakhs in FY22 to ₹404.07 Lakhs in FY24. PAT surged from ₹2.85 Lakhs in FY22 to ₹223.73 Lakhs in FY24. The pre-issue EPS stands at ₹1.71, with a post-issue EPS of ₹1.18. The pre-issue P/E ratio is 21.05x, and the post-issue P/E ratio is 30.50x, compared to the industry average of 62.45x. The company's ROCE for FY24 is 29.72%, and ROE is 19.30%, indicating a fair valuation of the IPO.

Despite potential listing gains of 10%-12% based on GMP, we recommend that investors approach the Gajanand International IPO cautiously. For long-term investment, the IPO might not be the best choice.

Additional Information

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