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Jeyyam Global Foods Ltd IPO
Status: Closed
Overview
IPO date
02 Sept 2024 to 04 Sept 2024
Face value
₹ 10 per share
Price
₹ 59 to ₹61 per share
Issue Size
13,432,000 shares
(aggregating up to ₹ 81.94 Cr)
(aggregating up to ₹ 81.94 Cr)
Allotment Date
05 Sept 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
FMCG
Objectives of Jeyyam Global Foods Ltd IPO
Initial public offer of upto 1,34,32,000 equity shares of face value of
Rs. 5/- each (the "Equity Shares") of Jeyyam Global Foods Limited ("The Company" or "The Issuer") at an offer price of Rs. 61 per equity share for cash, aggregating up to Rs. 81.94 crores ("Public Offer") comprising of a fresh issue of upto 1,20,88,800 equity shares aggregating to Rs. 73.74 crores (the "Fresh Issue") and an offer for sale of upto 13,43,200 equity shares by Shripal Veeramchand Sanghvi, selling shareholder ("Offer for Sale") aggregating to Rs. 8.19 crores. Out of which 6,72,000 equity share aggregating to Rs. 4.10 crores will be reserved for subscription by market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. offer of 1,27,60,000 equity shares of face value of Rs. 5 each, at an offer price of Rs. 61 per equity share for cash, aggregating upto Rs. 77.84 crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 28.28% and 26.86% respectively of the post-offer paid-up equity share capital of the company.
The face value of the equity share is Rs. 5/- & the offer price is 12.2 times of the face value of the equity shares.
Jeyyam Global Foods Ltd IPO Strategy
- Short and medium term growth strategies.
- Commencing export operations.
- Strategic Marketing and Distribution.
- Future Expansion and Deployment of Funds.
- Procurement Network and Future Outlook.
About Jeyyam Global Foods Ltd
Jeyyam Global Foods Limited was incorporated as 'Kichoni Online Services Private Limited' on March 24, 2008, as a Private Limited Company issued by Registrar of Companies, Chennai with the object to collect and sell data online. The Company name got changed to Jeyyam Products Private Limited' vide Fresh Certificate of Incorporation upon Change of Name dated June 18, 2009 issued by Registrar of Companies, Chennai. Thereafter, Shareholders of the Company in February, 2015 passed Special Resolution for Change in the Object Clause of the MOA of the Company to replace all the existing Main Objects with a New Object relating to Manufacturing, processing and trading of Pluses, Food grains, etc, and Name Change of Company to Jeyyam Global Foods Private Limited'. Due to Change in New Objects, the Company name changed to Jeyyam Global Foods Private Limited' vide Fresh Certificate of Incorporation consequent upon Change of Name dated February 24, 2015 was issued by Registrar of Companies, Chennai Thereafter, the Company converted into Public Company and the name was changed to Jeyyam Global Foods Limited' with effect from May 23, 2023.
The Company is engaged in manufacturing food products, in the field of pulses, especially fried grams and other dal varieties. Over more than 15 years in food industry, the Company specialize in manufacturing and/or processing and supply of Bengal Gram (locally known as Chana'), Fried Gram, and Besan Flour to wide variety of market like Distributors, Large Retailers, Hotels, Restaurants, Caterers, Branded Supermarkets and Wholesalers.
The Company started production at Deevatipatti factory, in Salem in 2015. The then promoters merged Jeyyam Food Park LLP (JFP LLP) with the Company in 2012. Accordingly, the Board of Director of the Company, on March 31, 2016, made a allotment of 272 Equity Shares
of the Company to the Partners of M/s. Jeyyam Food Park LLP, through the Scheme of Amalgamation between Jeyyam Food Park
LLP with the Company effective from April 01, 2015. The Company opened plant in Andhra Pradesh in 2020.
'Jeyyam' brand is known for its quality, which has earned the trust, and loyalty of its distributor retailers, and customers solely through complete transparency. The Company has obtained FSSAI License for both of its Factory locations and ensures that ISO 9001:2015 and ISO 22000:2018 standards are followed in both of its Factory location and have obtained the ISO Certification for Factory situated in Salem.
The Company is proposing the Initial Public Offer aggregating 1,34,32,000 Equity Shares, comprising 1,20,88,800 Equity Shares through Fresh Issue and 13,43,200 Equity Shares through Offer for Sale.
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T&C*
Strengths vs Risks of Jeyyam Global Foods Ltd
Know the pros & cons
Strengths
Chana focused Manufacturing.- Distribution Channel.
- Experienced Team.
- Wide range of Customers in B2B segment.
- Advanced Technologies.
- Customer relationships.
- Research & Development.
- Value proposition.
- Premium Quality.
- Manufacturing facility.
- Ready to enter into Full Kitchen Essentials.
- Diverse Product Portfolio and Distribution.
Risks
- The company is significantly dependent on the sale of its products namely, chana, and related products. The company aggregate revenue from sale of chana and related products accounted for 99%, 72% and 96% of its revenue from operations in FY 2024, FY 2023 and FY 2022, respectively. An inability to anticipate and adapt to evolving consumer preferences and demand for particular products, or ensure product quality
may adversely impact demand for its products, brand loyalty and consequently the company business, results of operations, financial condition and cash flows.
- The sale of its products is concentrated in the company core market of Tamil Nadu and Karnataka. Any adverse developments affecting its operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.
- Its revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on the company's results of operations.
- In Fiscal 2024, 2023 and 2022, its cost of materials consumed (including purchase of stock in trade and changes in inventory of finished goods, Work in progress and stock in trade) accounted for
approximately 90.27%, 89.42% & 87.54%, of its revenue from operations, respectively. Inadequate or interrupted supply and price fluctuation of its raw materials could adversely affect the company's business, results of operations, cash flow and financial condition.
- The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by the Company and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.
- There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The company has certain contingent liabilities that have been disclosed in the Restated Financial Information, which if they materialize, may adversely affect its business, results of operations, financial condition and cash flows.
- The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The Company has not done registration for transfer of property owned by Jeyyam Food Park LLP (FP LLP') in the name of the Company after amalgamation of JFP LLP with the Company.
- Its business is dependent on the company's distribution network. An inability to expands or effectively manage its distributor network, or any disruptions in its distribution network may have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Its operations are subject to various contamination related risks, including improper storage of the company's products and raw materials, labelling errors, and non-compliance with quality control standards. Any actual or alleged contamination could lead to legal liability, damage to brand reputation, and adverse impact on its business, results of operations, financial condition and cash flows.
- Any slowdown or interruption to its manufacturing operations or under-utilization of the company existing or future manufacturing facilities may have an adverse impact on its business, results of operations, financial condition and cash flows.
- An inability to maintain or enhance the popularity of its "Jeyyam" brand may adversely impact the company's business, results of operations, financial condition and cash flows.
- Its manufacturing facilities are concentrated in the state of Tamil Nadu and Andhra Pradesh. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in said Stated could have an adverse effect on its business, results of operations, financial condition and cash flows.
- An inability to comply with food safety laws, environmental laws and other applicable regulations in relation to its manufacturing facilities may adversely affect the company's business, results of operations, financial condition and cash flows.
- The Company has financial indebtedness and thus the inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business, results of operations, financial condition and cash flows.
- Its trade receivable days and the working capital cycle days have increased compared to the past 3 financial years.
- The Company has borrowings re-payable on demand.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of its insurance coverage.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency.
- The requirements of being a publicly listed company may strain its resources. Further non compliances of the regulatory requirements applicable to publicly listed companies may lead to suspension of the Company.
- The Trading the securities of one of its promoter company i.e. Shanti Guru Industries Limited has been suspended by BSE Limited in the past for non-compliance with the requirements of SEBI (LODR) Regulations, 2015 as amended from time to time.
- The company has not yet placed orders in relation to the funding Capital expenditures for the Civil Construction and Procurement of the plant and machinery which is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to execute the contract in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed procurement plans are subject to the risk of unanticipated delays in implementation due to factors including delays in machinery installations and cost overruns.
- The Company has delayed in filing of the GST Returns.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the offer price.
- Its corporate Promoter Shanti Guru Industries Limited is engaged in the line of business similar to the Company.
- Its business is subject to seasonality.
- The company's business is manpower intensive. Its business may be adversely affected by work stoppages, increased wage demands by the company's employees, or an increase in minimum wages, and if the company is unable to engage new employees at commercially attractive terms.
- The company depends on the skills and experience of its Promoters, Key Managerial Personnel, Senior Management for the company's business and future growth.
- The company operates in a competitive market and any increase in competition may adversely affect its business, results of operations, financial condition and cash flows.
- The company's future capacity expansion plans relating to its manufacturing facility are subject to the risks of unanticipated delays in implementation and cost overruns.
- Its may not be able to derive the desired benefits from the company product development efforts. Further, failures to develop and launch new products due to unpredictable consumer preferences may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Any inability to accurately manage inventory and forecast demand for particular products may have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company's inability to effectively manage its growth or implement the company's growth strategies may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its individual Promoters viz, Mr. Amit Agarwal, Mr. Shripal Veeramchand Sanghvi and Mrs. Sujathaa
Mehta have provided personal guarantees for loan facilities obtained by the Company and any failures or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively to effectively service their role as a promoter and directors and thereby, impact its business and operations.
- Its may not successfully protect the company's technical know-how, which may result in the loss of its competitive advantage.
- The company's inability to adopt new technologies to adhere to its quality product standards could adversely affect the company's business, results of operations, financial condition and cash flows.
- Technology failures could disrupt its operations and adversely affect the company's business, results of operations, financial condition and cash flows.
- The company may be subject to fraud, theft, employee negligence or similar incidents.
- Some of its manufacturing facilities and Registered Office are not located on land owned by it and the company has only leasehold rights. In the event its lose or are unable to renew such leasehold rights, the company's business, results of operations, financial condition and cash flows may be adversely affected.
- Its may requires to raise additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all.
- Failures in internal control systems could cause operational errors which may have an adverse effect on its reputation, business, results of operations, financial condition and cash flows.
- The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of its financing arrangements.
- After the completion of the Offer, its Promoters & Promoter Group will continue to collectively hold majority of the shareholding in the Company, which will allow them to influence the outcome of matters requiring shareholder approval.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and
any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".
Jeyyam Global Foods Ltd Peer Comparison
Understand the company’s industry standing
Jeyyam Global Foods Ltd
Sameera Agro and Infra Ltd
Face Value
10
10
Standalone / Consolidated
Standalone
Consolidated
Total Income Rs. Cr.
---
---
EPS-Basis
4.26
9
EPS-Diluted
---
---
NAV Per Share
22.66
77.36
P/E-Basic EPS
13.85
9.8
P/E-Diluted EPS
---
---
RONW(%)
18.81
11.64
Latest NAV Period
---
---
Latest NAV
---
---
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Enter details- PAN, Application number or DP client ID
Get your allotment status
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The IPO opens on 02 Sept 2024 & closes on 04 Sept 2024.
Jeyyam Global Foods Limited was incorporated as 'Kichoni Online Services Private Limited' on March 24, 2008, as a Private Limited Company issued by Registrar of Companies, Chennai with the object to collect and sell data online. The Company name got changed to Jeyyam Products Private Limited' vide Fresh Certificate of Incorporation upon Change of Name dated June 18, 2009 issued by Registrar of Companies, Chennai. Thereafter, Shareholders of the Company in February, 2015 passed Special Resolution for Change in the Object Clause of the MOA of the Company to replace all the existing Main Objects with a New Object relating to Manufacturing, processing and trading of Pluses, Food grains, etc, and Name Change of Company to Jeyyam Global Foods Private Limited'. Due to Change in New Objects, the Company name changed to Jeyyam Global Foods Private Limited' vide Fresh Certificate of Incorporation consequent upon Change of Name dated February 24, 2015 was issued by Registrar of Companies, Chennai Thereafter, the Company converted into Public Company and the name was changed to Jeyyam Global Foods Limited' with effect from May 23, 2023.
The Company is engaged in manufacturing food products, in the field of pulses, especially fried grams and other dal varieties. Over more than 15 years in food industry, the Company specialize in manufacturing and/or processing and supply of Bengal Gram (locally known as Chana'), Fried Gram, and Besan Flour to wide variety of market like Distributors, Large Retailers, Hotels, Restaurants, Caterers, Branded Supermarkets and Wholesalers.
The Company started production at Deevatipatti factory, in Salem in 2015. The then promoters merged Jeyyam Food Park LLP (JFP LLP) with the Company in 2012. Accordingly, the Board of Director of the Company, on March 31, 2016, made a allotment of 272 Equity Shares
of the Company to the Partners of M/s. Jeyyam Food Park LLP, through the Scheme of Amalgamation between Jeyyam Food Park
LLP with the Company effective from April 01, 2015. The Company opened plant in Andhra Pradesh in 2020.
'Jeyyam' brand is known for its quality, which has earned the trust, and loyalty of its distributor retailers, and customers solely through complete transparency. The Company has obtained FSSAI License for both of its Factory locations and ensures that ISO 9001:2015 and ISO 22000:2018 standards are followed in both of its Factory location and have obtained the ISO Certification for Factory situated in Salem.
The Company is proposing the Initial Public Offer aggregating 1,34,32,000 Equity Shares, comprising 1,20,88,800 Equity Shares through Fresh Issue and 13,43,200 Equity Shares through Offer for Sale.
Jeyyam Global Foods Ltd IPO will close on 04 Sept 2024.
- Chana focused Manufacturing.
- Distribution Channel.
- Experienced Team.
- Wide range of Customers in B2B segment.
- Advanced Technologies.
- Customer relationships.
- Research & Development.
- Value proposition.
- Premium Quality.
- Manufacturing facility.
- Ready to enter into Full Kitchen Essentials.
- Diverse Product Portfolio and Distribution.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Shripal Veeramchand Sanghvi | 8539804 | 24.12 | 7196604 | 15.15 |
| 2 | Amit Agarwal | 5311176 | 15 | 5311176 | 11.18 |
| 3 | Sujathaa Mehta | 2212990 | 6.25 | 2212990 | 4.66 |
| 4 | Shanti Guru Industries Ltd | 7041896 | 19.89 | 7041896 | 14.83 |
- The company is significantly dependent on the sale of its products namely, chana, and related products. The company aggregate revenue from sale of chana and related products accounted for 99%, 72% and 96% of its revenue from operations in FY 2024, FY 2023 and FY 2022, respectively. An inability to anticipate and adapt to evolving consumer preferences and demand for particular products, or ensure product quality may adversely impact demand for its products, brand loyalty and consequently the company business, results of operations, financial condition and cash flows.
- The sale of its products is concentrated in the company core market of Tamil Nadu and Karnataka. Any adverse developments affecting its operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.
- Its revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on the company's results of operations.
- In Fiscal 2024, 2023 and 2022, its cost of materials consumed (including purchase of stock in trade and changes in inventory of finished goods, Work in progress and stock in trade) accounted for approximately 90.27%, 89.42% & 87.54%, of its revenue from operations, respectively. Inadequate or interrupted supply and price fluctuation of its raw materials could adversely affect the company's business, results of operations, cash flow and financial condition.
- The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by the Company and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.
- There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The company has certain contingent liabilities that have been disclosed in the Restated Financial Information, which if they materialize, may adversely affect its business, results of operations, financial condition and cash flows.
- The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The Company has not done registration for transfer of property owned by Jeyyam Food Park LLP (FP LLP') in the name of the Company after amalgamation of JFP LLP with the Company.
- Its business is dependent on the company's distribution network. An inability to expands or effectively manage its distributor network, or any disruptions in its distribution network may have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Its operations are subject to various contamination related risks, including improper storage of the company's products and raw materials, labelling errors, and non-compliance with quality control standards. Any actual or alleged contamination could lead to legal liability, damage to brand reputation, and adverse impact on its business, results of operations, financial condition and cash flows.
- Any slowdown or interruption to its manufacturing operations or under-utilization of the company existing or future manufacturing facilities may have an adverse impact on its business, results of operations, financial condition and cash flows.
- An inability to maintain or enhance the popularity of its "Jeyyam" brand may adversely impact the company's business, results of operations, financial condition and cash flows.
- Its manufacturing facilities are concentrated in the state of Tamil Nadu and Andhra Pradesh. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in said Stated could have an adverse effect on its business, results of operations, financial condition and cash flows.
- An inability to comply with food safety laws, environmental laws and other applicable regulations in relation to its manufacturing facilities may adversely affect the company's business, results of operations, financial condition and cash flows.
- The Company has financial indebtedness and thus the inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business, results of operations, financial condition and cash flows.
- Its trade receivable days and the working capital cycle days have increased compared to the past 3 financial years.
- The Company has borrowings re-payable on demand.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of its insurance coverage.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency.
- The requirements of being a publicly listed company may strain its resources. Further non compliances of the regulatory requirements applicable to publicly listed companies may lead to suspension of the Company.
- The Trading the securities of one of its promoter company i.e. Shanti Guru Industries Limited has been suspended by BSE Limited in the past for non-compliance with the requirements of SEBI (LODR) Regulations, 2015 as amended from time to time.
- The company has not yet placed orders in relation to the funding Capital expenditures for the Civil Construction and Procurement of the plant and machinery which is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to execute the contract in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed procurement plans are subject to the risk of unanticipated delays in implementation due to factors including delays in machinery installations and cost overruns.
- The Company has delayed in filing of the GST Returns.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the offer price.
- Its corporate Promoter Shanti Guru Industries Limited is engaged in the line of business similar to the Company.
- Its business is subject to seasonality.
- The company's business is manpower intensive. Its business may be adversely affected by work stoppages, increased wage demands by the company's employees, or an increase in minimum wages, and if the company is unable to engage new employees at commercially attractive terms.
- The company depends on the skills and experience of its Promoters, Key Managerial Personnel, Senior Management for the company's business and future growth.
- The company operates in a competitive market and any increase in competition may adversely affect its business, results of operations, financial condition and cash flows.
- The company's future capacity expansion plans relating to its manufacturing facility are subject to the risks of unanticipated delays in implementation and cost overruns.
- Its may not be able to derive the desired benefits from the company product development efforts. Further, failures to develop and launch new products due to unpredictable consumer preferences may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Any inability to accurately manage inventory and forecast demand for particular products may have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company's inability to effectively manage its growth or implement the company's growth strategies may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its individual Promoters viz, Mr. Amit Agarwal, Mr. Shripal Veeramchand Sanghvi and Mrs. Sujathaa Mehta have provided personal guarantees for loan facilities obtained by the Company and any failures or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively to effectively service their role as a promoter and directors and thereby, impact its business and operations.
- Its may not successfully protect the company's technical know-how, which may result in the loss of its competitive advantage.
- The company's inability to adopt new technologies to adhere to its quality product standards could adversely affect the company's business, results of operations, financial condition and cash flows.
- Technology failures could disrupt its operations and adversely affect the company's business, results of operations, financial condition and cash flows.
- The company may be subject to fraud, theft, employee negligence or similar incidents.
- Some of its manufacturing facilities and Registered Office are not located on land owned by it and the company has only leasehold rights. In the event its lose or are unable to renew such leasehold rights, the company's business, results of operations, financial condition and cash flows may be adversely affected.
- Its may requires to raise additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all.
- Failures in internal control systems could cause operational errors which may have an adverse effect on its reputation, business, results of operations, financial condition and cash flows.
- The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of its financing arrangements.
- After the completion of the Offer, its Promoters & Promoter Group will continue to collectively hold majority of the shareholding in the Company, which will allow them to influence the outcome of matters requiring shareholder approval.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".
The Issue type of Jeyyam Global Foods Ltd is Book Building - SME.
The minimum application for shares of Jeyyam Global Foods Ltd is 2000.
The total shares issue of Jeyyam Global Foods Ltd is 13432000.
Initial public offer of upto 1,34,32,000 equity shares of face value of
Rs. 5/- each (the "Equity Shares") of Jeyyam Global Foods Limited ("The Company" or "The Issuer") at an offer price of Rs. 61 per equity share for cash, aggregating up to Rs. 81.94 crores ("Public Offer") comprising of a fresh issue of upto 1,20,88,800 equity shares aggregating to Rs. 73.74 crores (the "Fresh Issue") and an offer for sale of upto 13,43,200 equity shares by Shripal Veeramchand Sanghvi, selling shareholder ("Offer for Sale") aggregating to Rs. 8.19 crores. Out of which 6,72,000 equity share aggregating to Rs. 4.10 crores will be reserved for subscription by market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. offer of 1,27,60,000 equity shares of face value of Rs. 5 each, at an offer price of Rs. 61 per equity share for cash, aggregating upto Rs. 77.84 crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 28.28% and 26.86% respectively of the post-offer paid-up equity share capital of the company.
The face value of the equity share is Rs. 5/- & the offer price is 12.2 times of the face value of the equity shares.