Jeyyam Global Foods Limited is a well-established name with a legacy of over 40 years in the Chana industry. Known for operating one of Asia's largest chana product manufacturing units, Jeyyam has developed an efficient supply chain ecosystem that underscores its expertise in the sector. As the company moves forward with its Initial Public Offering (IPO), here’s a comprehensive overview of what investors need to know.

IPO Overview

The Jeyyam Global Foods IPO is a book-built issue amounting to ₹81.93 Crores. This issue consists entirely of a fresh issue of 120.8 lakh shares. The subscription period for this IPO opens on September 02, 2024, and closes on September 04, 2024. The allotment is expected to be finalized on September 05, 2024, with the shares scheduled to be listed on the NSE SME with a tentative listing date of September 09, 2024.

The share price band for the IPO is set between ₹59 and ₹61 per equity share, with a minimum lot size of 2,000 shares. Retail investors need to invest a minimum of ₹122,000, whereas High-Net-Worth Individuals (HNIs) must invest in at least 2 lots (4,000 shares), totaling ₹244,000.

Lead Manager and Registrar

CORPWIS ADVISORS PRIVATE LIMITED is the book-running lead manager for the IPO.

KFIN TECHNOLOGIES LIMITED will act as the registrar for the issue.

NNM Securities Private Limited will serve as the market maker for the Jeyyam Global Foods IPO.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Jeyyam Global Foods IPO is anticipated to range between ₹34 and ₹37. It's important to understand that GMP is not a reliable indicator of the actual listing price, as it reflects informal market demand and supply. The GMP is mentioned here solely for educational and informational purposes.

Live Subscription Status

As of 06:00 PM on September 04, 2024, the Jeyyam Global Foods IPO has been subscribed 111.17 times on its final day of the subscription period. For the latest subscription status, investors can check the NSE website.

Allotment Status

The IPO allotment for Jeyyam Global Foods is scheduled for September 05, 2024. Investors can check their allotment status by:

Navigating to the IPO allotment status page.

Selecting Jeyyam Global Foods Limited IPO from the dropdown list.

Entering the application number, PAN, or DP Client ID.

Submitting the details to view the allotment status.

Objectives of the IPO

The funds from the fresh issue will be allocated towards:

₹3,500 Lakhs for funding working capital.

₹1,900 Lakhs for capital expenditures.

General corporate purposes.

Financial Performance and Valuation

Jeyyam Global Foods has demonstrated robust financial growth:

Revenue surged from ₹25,388.30 Lakhs in FY22 to ₹38,220.62 Lakhs in FY23, and further to ₹62,983.42 Lakhs in FY24.

EBITDA increased from ₹1,152.19 Lakhs in FY22 to ₹1,700.95 Lakhs in FY23, and to ₹3,292.30 Lakhs in FY24.

PAT also grew from ₹436.80 Lakhs in FY22 to ₹766.80 Lakhs in FY23, and to ₹1,509.11 Lakhs in FY24.

For the IPO, the company is issuing shares at a pre-issue EPS of ₹4.26 and a post-issue EPS of ₹3.17. The pre-issue P/E ratio is 14.31x, while the post-issue P/E ratio is 19.24x, compared to the industry P/E ratio of 9.80x. The company's Return on Capital Employed (ROCE) for FY24 stands at 26.27%, and Return on Equity (ROE) at 18.81%. These metrics indicate that the IPO is fully priced.

Investment Recommendation

The Grey Market Premium (GMP) suggests potential listing gains of 55% - 60%. Given the company’s financial performance and the IPO’s valuation, it is recommended that risky investors consider applying for the Jeyyam Global Foods Limited IPO for potential listing gains or long-term investment.

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