Madhusudhan Masala IPO Set to Commence Trading on September 18: Pricing Details and Important Dates

Madhusudhan Masala, a prominent small and medium-sized enterprise (SME) specializing in the production of spices, is poised to make its market debut as it opens its Initial Public Offering (IPO) for subscription on Monday, September 21, 2023. This development marks a significant step for the homegrown spice manufacturer, providing an opportunity for investors to partake in its growth journey.

IPO Price Band and Valuation

Madhusudhan Masala has set the IPO price band in the range of ₹66 to ₹70 per share for the public issue. This price band signifies the cost at which shares will be offered for subscription to potential investors. It also reflects the valuation expectations of the company. Prospective investors are encouraged to thoroughly evaluate this price range in the context of their investment objectives and risk tolerance.

Madhusudhan Masala SME IPO Subscription Closing on September 21: Allotment and Listing Dates Announced

The Initial Public Offering (IPO) of the small and medium-sized enterprise (SME), Madhusudhan Masala, is swiftly approaching key milestones as it closes for subscription on Thursday, September 21, 2023. The homegrown spice manufacturer has also unveiled essential dates regarding the IPO’s allotment and listing on the National Stock Exchange’s SME platform.

IPO Subscription Closing Date

The Madhusudhan Masala SME IPO subscription period is set to conclude on Thursday, September 21, 2023. Investors are encouraged to finalize their applications within this timeframe to participate in this exciting investment opportunity.

Allotment Date

The much-anticipated allotment of shares for the Madhusudhan Masala IPO is anticipated to be finalized on Tuesday, September 26, 2023. This crucial step will determine the allocation of shares to individual investors based on their subscription requests.

Listing on NSE SME

Madhusudhan Masala is scheduled to be listed on the National Stock Exchange’s SME platform. The tentative listing date is fixed for Tuesday, October 3, 2023. On this date, the company’s shares will become tradable on the exchange, marking a significant milestone in its journey towards broader market participation.

Detailed Insights into Madhusudhan Masala IPO

The Madhusudhan Masala IPO, a book-built issue with a total value of ₹23.80 crore, is poised to offer investors an opportunity to be a part of its growth journey. Here are the intricate details regarding this IPO:

IPO Fundamentals

• The Madhusudhan Masala IPO is a book-built issue with a total value of ₹23.80 crore. This figure signifies the total size of the IPO and the capital it aims to raise from the market.
• The IPO issue consists of the sale of 34 lakh fresh equity shares, each carrying a face value of Rs. 10. This collective sale amounts to a total value of Rs. 23.80 crore, representing the financial quantum the company seeks to raise from investors.

Lot Size and Pricing

• For investors looking to participate in the Madhusudhan Masala IPO, the lot size has been established at 2,000 equity shares. This denotes the minimum number of shares that can be applied for and allocated to an individual investor in a single lot.
• At the upper end of the price band, which stands at ₹70 per share, each lot is priced at ₹1,40,000. This amount signifies the financial commitment required to apply for and secure a lot of 2,000 equity shares in the IPO.

Allocation and Utilization of Madhusudhan Masala IPO Shares

The Madhusudhan Masala IPO, a significant event in the company’s journey, is accompanied by a well-defined allocation strategy and clear utilization of proceeds. Here are the key insights into the allocation and utilization of shares in this offering:

Allocation of Equity Shares

• The company has reserved 1.72 lakh equity shares for market maker portions. This allocation is designated to facilitate the liquidity and stability of the stock when it begins trading on the stock exchange.
• Among the remaining shares offered in the IPO, 50 per cent of the net IPO offer has been reserved for Qualified Institutional Bidders (QIBs). This segment typically includes institutional investors, such as mutual funds, insurance companies, and foreign institutional investors.
• A 15 per cent allocation of equity shares is reserved for non-institutional investors. This category encompasses individual investors who do not fall under the QIB bracket but can still participate in the offering.
• Retail investors, constituting a significant portion of potential participants, will have access to the remaining 35 percent of the IPO offering. This allocation is aimed at encouraging retail investor participation.

Utilization of IPO Proceeds

The net proceeds generated from the Madhusudhan Masala IPO will be channeled for various purposes, including:

1. Working Capital Requirements: A portion of the funds raised will be deployed to bolster the company’s working capital. This allocation is crucial for sustaining day-to-day operations and supporting ongoing business activities.
2. General Corporate Purposes: The IPO proceeds will also be utilized for general corporate purposes, which may encompass a wide range of operational needs and growth initiatives.
3. Covering Issue-Related Expenses: Some of the funds will be used to cover expenses directly associated with the IPO process. This includes costs related to legal, regulatory, marketing, and administrative activities surrounding the IPO.

Key Facilitators of the IPO

• Hem Securities Limited serves as the book running lead manager for the Madhusudhan Masala IPO. Their expertise is instrumental in orchestrating the IPO process effectively.
• Kfin Technologies Limited has been appointed as the registrar for the issue. Their role involves managing various aspects of share allocation and investor services.
• Hem Finlease, designated as the market maker for the Madhusudhan Masala IPO, plays a pivotal role in maintaining liquidity in the stock when it debuts on the stock exchange.

Company Overview – Madhusudhan Masala

Madhusudhan Masala is a prominent player in the Indian spice industry, renowned for its extensive product range and strong brand presence. The company specializes in the manufacturing and processing of over 32 types of spices, which are marketed under its proprietary brand names, “Double Hathi” and “Maharaja.” Beyond spices, Madhusudhan Masala extends its product portfolio to include whole spices, available both in retail and bulk quantities. The company also offers a diverse range of complementary products, including papad, soya products, Asafoetida (Hing), black salt, and rock salt, all of which are marketed under the brand name “Double Hathi.”

Manufacturing Excellence

Madhusudhan Masala operates its manufacturing facility strategically located in the Industrial Area of Hapa, near Jamnagar in the state of Gujarat, India. This facility serves as the epicenter for the production and processing of their wide range of spice products. The company takes pride in its comprehensive portfolio, which consists of 212 Stock Keeping Units (SKUs) encompassing ground spices and blend spices, catering to diverse culinary needs.

Robust Distribution Network

The company has established a robust distribution network that spans across multiple states, including Gujarat, Maharashtra, and Rajasthan. This network comprises 2,100 wholesalers and 3,700 retailers, solidifying Madhusudhan Masala’s market presence and ensuring the availability of its products to a wide customer base. The extensive distribution network enables the company to efficiently reach consumers across various regions, further enhancing its brand reach.