Madhusudan Masala Limited IPO Opens for Bidding on September 18

Business News City/ state

New Delhi (India), September 16: Madhusudan Masala Limited, a leading homegrown spice maker, is all set to embark on a new chapter of growth as it announces its initial public offering (IPO). The primary stake sale is set to open for bidding on Monday, September 18 and will run until Thursday, September 21. Madhusudan Masala Limited will offer its shares at a price band of Rs. 66-70 per equity share.

With a legacy of more than four decades, MadhusudanMasala Limited is engaged in manufacturing and processing more than 32 types of Spices under its own brand names “Double Hathi” and “Maharaja”. The company also deals in whole spices in retail and bulk quantities, as well as papad, soya products, Asafoetida(Hing), black salt, and rock salt under its brand name “Double Hathi”.

The IPO issue comprises the sale of 34 lakh fresh equity shares, each with a face value of Rs. 10, aggregating to Rs. 23.80 crores. The lot size for the IPO is set at 2,000 equity shares, with each lot priced at Rs 1,40,000 at the upper end of the price band. Retail investors are eligible to apply for a single lot, while non-institutional investors have the option to bid for a minimum of two lots.

The net proceeds from the IPO will be channelled toward fulfilling the company’s working capital requirements, general corporate purposes, and covering issue-related expenses. Hem Securities Limited is the Book Running Lead manager to the issue, while KfinTechnologies Limited is the registrar to the issue. Shares of Madhusudan Masala will be listed on the NSE Emerge platform of the National Stock Exchange.

Madhusudan Masala’s manufacturing facility is located at Industrial Area Hapa, near Jamnagar, Gujarat. The company has 212 SKU’s of ground spices & blend spices. The company has a network of 2,100 wholesalers and 3,700 retailers in Gujarat, Maharashtra & Rajasthan.

Madhusudan Masala has reserved 1.72 lakh equity shares for market maker portions. The company has allocated 50 percent of the net IPO offer to qualified institutional bidders (QIBs), while 15 percent of equity shares are reserved for non-institutional investors. Retail investors will have access to the remaining 35 percent of the offering.

For the fiscal year ending on March 31, 2023, Madhusudan Masala reported a net profit of Rs 575.89 lakh with a revenue of Rs 12,750.57 lakh. Its EBITDA margin stood at 8.66 per cent, while its profit margin came in at 4.53 per cent in FY23.

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