About the Company:
Tasty Dairy Specialities is involved in processing milk, along with bulk milk procurement & handling, during season time which primarily caters to bulk and marquee institutional customers.,
Company is further involved in value added milk products like Skimmed Milk Powder, Butter, Ghee, Dairy Whitener, Concentrated Milk etc.
Company is situated in Uttar Pradesh, which is one of the largest milk producer State in India. Company’s manufacturing unit at D-3, UPSIDC Industrial Area, Jainpur, Kanpur Dehat, Uttar Pradesh falls in the richest milk belt of Uttar Pradesh.
Company with the existing plant and machinery is capable of handling approximately 5,00,000 litres of raw milk which comprises of 1,60,000 litres of milk packaging, 20,000 litres of buttermilk packaging, 2,20,000 Litres for making Skimmed Milk Powder and Ghee and 2,00,000 litres of bulk milk processing.
They are catering to the best of the customers in Indian dairy segment and their prime customers being Delhi Milk scheme (a Central Government of India Organisation), Mother Dairy (a wholly owned subsidiary of the National Dairy Development Board (NDDB)), Parle Products , Sterling Agro Industries Limited, Kwality Dairy Limited, Perfetti Van Melle etc.
Company derives majority of their revenues from the sales of institutional products. In FY 2017, sales of institutional products represented 75.97% of the revenue, while sales of retail consumer products represented 24.03%.
Company has wide range of quality dairy products under its umbrella which includes Pasteurized Liquid Milk, Cream, Butter, Pure Desi Ghee, Paneer, Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener, Instant Gulab Jamun Mix, Peda, Mithai Powder etc. are packaged under the brand names “UJJWAL”, “SHIKHAR”, “VERIFRESH”, “CIMA“, “MITHAI MASTER” which are available in Uttar Pradesh, Madhya Pradesh and Bihar, whereas, the institutional products are supplied pan India.
They sell their products to retail customers through general trade channels in the State of Uttar Pradesh, Haryana Rajasthan Delhi, Bihar, Madhya Pradesh, Karnataka, Kerala etc.
As of September 30, 2017, Company’s distributor network included more than 20 distributors through which they serve a large number of retail outlets.
Company’s Brands & Products:
Company’s Key Clients are as follows:
- Parle Products Pvt. Ltd.
- ITC Limited (Food Division)
- Nutrine Confectionery Pvt. Ltd.
- Mother Dairy
- Delhi Milk Scheme
- Heinz India Private Limited
- Central Dairy
- Uttar Pradesh Employee Welfare Association
- Military Farm
Company’s Production Capacity:
Management Team:
- Mr. Atul Mehra (Designation: Chairman and Whole Time Director)
- Mr. Prem Nandan Mehra (Designation: Executive Director)
- Mr. Mahendra Kumar Singh (Designation: Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mrs. Sonia Mehra | 1,35,00,000 | 0.067 |
| Mr. Atul Mehra | 14,79,000 | 0.067 |
| Mr. Prem Nandan Mehra | 15,000 | 0.067 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters: | ||
| Sonia Mehra | 90.00% | 66.08% |
| Atul Mehra | 9.86% | 7.24% |
| Prem Nandan Mehra | 0.10% | 0.07% |
| Promoter Group Entities: | 0.02% | 0.02% |
| Total | 99.98% | 73.41% |
Objectives of the Issue:
- To meet Working Capital Requirements.
- General Corporate Purposes.
- To meet the Issue Expenses.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 204.8 | 251.90 | 307.95 | 334.88 | 239.00 | 137.40 |
| Net Profit | 4.51 | 5.42 | 4.47 | 4.61 | 4.51 | 2.42 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Tasty Dairy Specialities Ltd. | 10 | 5.02 | 8.96 | 13.12% | 38.24 |
| Prabhat Dairy Ltd. | 10 | 2.80 | 76.61 | 6.82% | 70.46 |
| Hatsun Agro Product Ltd. | 1 | 8.60 | 96.50 | 38.60% | 22.81 |
| Kwality Ltd. | 1 | 6.90 | 16.14 | 17.38% | 47.07 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 7th February 2017 |
| Issue Closes on:. | 12th February 2017 |
| Issue Price | Rs.45 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,35,000 |
| Issue Constitutes | 26.58% |
| Issue Size | Rs.24.43 cr |
| Market Cap | Rs.91.93 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (Fresh) | 54,30,000 |
| Equity Shares Prior to the Issue | 1,50,00,000 |
| Equity Shares after the issue | 2,04,30,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.02 | 8.96 | 13.12 | 38.24 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 13/02/18 | Tasty Dairy Specialities Ltd | 45 | 15 – 17 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:45 PM) | Shares Offered | Day-1 | Day-2 | Day-3 | Day-4 |
|---|---|---|---|---|---|
| HNI | 25,77,000 | 0.47 | 1.07 | 3.07 | 155.32 |
| Retail | 25,77,000 | 0.27 | 0.95 | 2.97 | 40.51 |
| Others | 2,76,000 | —— | —— | —— | —— |
| TOTAL | 54,30,000 | 0.74 | 2.02 | 2.87 | 92.94 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 30% |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Tasty Dairy Specialities Ltd D-3, UPSIDC Industrial Area, Jainpur, Kanpur Dehat-209 311, Uttar Pradesh. Website: www.tastydairy.com |
| IPO Registrar Info: |
|---|
| Bigshare Service Private Limited 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makhwana Road, Marol, Andheri (E), Mumbai-400 059. Contact Person: Mr. Ashok S Shetty Tel No.: +91 22 2847 0652/4043 0200 E-Mail ID: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| Mark Corporate Advisors Private Limited 404/1, The Summit Business Bay, Sant Janabai Road (Service Lane), Off W. E. Highway, Vile Parle (East), Mumbai-400 057. Tel. No.: +91 22 2612 3207/08 E-Mail ID: smeipo@markcorporateadvisors.com Website: www.markcorporateadvisors.com |
