Jeyyam Global Foods Limited, a brand with over 40 years of legacy in the Chana industry, has announced its IPO to raise ₹81.93 crores. The issue is entirely a fresh issue of 120.8 lakh shares, with the price band set between ₹59 and ₹61 per equity share. The IPO is available for subscription from September 02, 2024, to September 04, 2024, with the shares expected to list on the NSE SME on or around September 09, 2024.

Subscription and Allotment Details:

Retail investors can invest in a minimum of 2,000 shares, amounting to ₹122,000, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots, equating to ₹244,000. The IPO is being managed by CORPWIS Advisors Private Limited, with KFIN Technologies Limited as the registrar, and NNM Securities Private Limited as the market maker.

The IPO allotment is expected to be finalized on September 05, 2024. Investors can check their allotment status on the registrar’s website by selecting "Jeyyam Global Foods Limited IPO" from the dropdown list and entering their application number, PAN, or DP Client ID.

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Financial Performance:

Jeyyam Global Foods has shown impressive financial growth over recent years. Revenue surged from ₹25,388.30 Lakhs in FY22 to ₹62,983.42 Lakhs in FY24. Similarly, EBITDA increased from ₹1,152.19 Lakhs in FY22 to ₹3,292.30 Lakhs in FY24. The company’s PAT also showed significant growth, rising from ₹436.80 Lakhs in FY22 to ₹1,509.11 Lakhs in FY24.

The pre-issue EPS stands at ₹4.26, while the post-issue EPS is ₹3.17. The pre-issue P/E ratio is 14.31x, and the post-issue P/E ratio is 19.24x, compared to the industry P/E ratio of 9.80x. The company’s ROCE for FY24 is 26.27% and ROE for FY24 is 18.81%. These figures suggest that while the IPO is fully priced, the financial performance of Jeyyam Global Foods supports the valuation.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for Jeyyam Global Foods Limited IPO is expected to range between ₹25 to ₹30. This indicates potential listing gains of 40% - 50%. However, it's essential to note that GMP is based on unorganized trading and doesn't necessarily reflect the actual market price upon listing.

Investment Consideration:

Given Jeyyam Global Foods' strong financial performance, this IPO presents a viable opportunity for risky investors looking for listing gains or long-term investment. However, due to the fully priced nature of the IPO, cautious evaluation is recommended before making any investment decisions.

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