Megastar Foods Ltd

Megastar Foods

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: 

major customers

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:

Capacity Utilization


Management Team:

  1. Mr. Vikas Goel (Designation: Chairman Cum Managing Director)
  2. Mr. Vikas Gupta (Designation: Whole Time Director)
  3. 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 (%)
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


IPO Registrar Info:
D-153A, 1st Floor, Okhla Industrial Area Phase-I,
New Delhi – 110020
Tel No.:+91 11 64732681-88
Fax No.:+91 11 26812682
Investor Email:


Lead Manager to the Issue:
305, Madhuban Building, Cochin Street,
S.B.S. Road, Fort, Mumbai, Maharashtra – 400 001.
Tel No.:+91–22–2265 5565
Investor Email: