About the Company:
Megastar Foods Ltd (Incorporated in 2011) is engaged in the manufacturing of food based products such as wheat flour, organic wheat flour products and allied flour products.
Company produces food products related to wheat i.e. Atta-wheat flour products, Maida-Fine wheat flour products, Suji/Rawa-Semolina, Chokar/Wheat Bran, Organic Atta, Organic whole Wheat flour and Organic wheat flour etc.
Company is having FSSAI license, Organic Certificate for in accordance with the requirements of India’s National Programme for Organic Production Standards by the Ecocert India Pvt. Limited, HALAL certified by HALAL India Pvt. Ltd etc.
Company is having state of the art modern machinery in the wheat processing plant in Punjab, India, with an installed capacity of 81000 MT per year.
At present they are catering majorly to MNC’s in India and also exporting some of their products to United Nations Organization, Europe, United States & Middle East.
Company’s major customers are Jubilant Foodworks Limited, Nestle India Limited, GSK (Glaxo Smithklime Consumer healthcare Limited), Pepsico India Holding Pvt. Ltd., UB (United Biscuits Pvt. Ltd.) and ITC Limited etc.
Major Customers & Revenue Contribution:
Certifications and Recognition:
Certificate of FSSC 22000 by Intertek Certification Limited, United Kingdom.
Organic Certificate for products by the Ecocert India Pvt. Limited.
HALAL India Certificate by HALAL India Pvt. Ltd.
Licence under Food Safety and Standard Authority of India (FSSAI).
Capacity Utilization:
Management Team:
- Mr. Vikas Goel (Designation: Chairman Cum Managing Director)
- Mr. Vikas Gupta (Designation: Whole Time Director)
- Mr. Mudit Goyal (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Vikas Goel | 24,92,660 | 8.87 |
| Mr. Vikas Gupta | 21,03,900 | 7.65 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
| Mr. Vikas Goel | 34.51 | 25.17 |
| Mr. Vikas Gupta | 29.12 | 21.24 |
| Promoter Group Entities | 29.20 | 21.30 |
| Total | 92.83% | 67.71% |
Objectives of the Issue:
- To Meet Working Capital Requirement
- General Corporate Purpose.
- To Meet the Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 6.50 |
| General Corporate Expenses | 1.12 |
| Issue Related Expenses | 0.41 |
| Net Proceeds | 8.04 cr |
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|
| Revenue | 7.85 | 44.50 | 78.04 | 97.76 | 78.36 |
| Net Profit | (-0.0011) | (-0.28) | 0.59 | 1.05 | 0.87 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Megastar Foods Ltd | 10 | 1.47 | 20.47 | 14.43% | 12.29 |
| DFM Foods Limited | 10 | 15.80 | 74.90 | 21.80% | 80.60 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 14th May 2018 |
| Issue Closes on:. | 16th May 2018 |
| Issue Price | Rs.30 |
| Face Value | Rs.10 |
| Minimum Lot | 4000 |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 27.06% |
| Issue Size | Rs.8.04 cr |
| Market Cap | Rs.29.71 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (Fresh) | 26,80,000 |
| Equity Shares Prior to the Issue | 72,23,700 |
| Equity Shares after the Issue | 99,03,700 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.47 | 20.47 | 14.43% | 12.29 |
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| Company Contact Info: |
|---|
| Megastar Foods Limited Plot No. 807, Industrial Area, Phase-II, Chandigarh-160102, India. Tel. No.: +91-0172-5005024, 2653807 E-mail: info@megastarfoods.com Website: www.megastarfoods.com |
| IPO Registrar Info: |
|---|
| SKYLINE FINANCIAL SERVICES PRIVATE LIMITED D-153A, 1st Floor, Okhla Industrial Area Phase-I, New Delhi – 110020 Tel No.:+91 11 64732681-88 Fax No.:+91 11 26812682 Email: virenr@skylinerta.com; Investor Email: grievances@skylinerta.com Website: www.skylinerta.com |
| Lead Manager to the Issue: |
|---|
| SWASTIKA INVESTMART LIMITED 305, Madhuban Building, Cochin Street, S.B.S. Road, Fort, Mumbai, Maharashtra – 400 001. Tel No.:+91–22–2265 5565 Email: merchantbanking@swastika.co.in Investor Email: investorgreivance@swastika.co.in Website: www.swastika.co.in |
