About the Company:
Grill Splendour Services Ltd (Birdy’s) a chain of gourmet Bakery and Patisserie spread across Mumbai through 17 retail stores, a centralized production facility and multiple corporate clients.
Out of these 17 retail stores, 5 stores are running under the franchisee model (franchisee owned, and company operated) and rest 12 stores are owned by the Company.
Company’s offer fresh food products from traditional to ‘made to order’ as required by the Customers. Both the Promoters individually have 30+ years of experience in Hospitality industry.
Company also plans to add more products like chocolates, packaged snacks, cereals and Indian sweets in our store to serve varied needs of customers like breakfast, lunch, snacks and celebrations.
Company operates a a centralized production facility and caters to multiple corporate clients.
Company’s History:
Grill Splendour Services Private Ltd. was incorporated in November 2019 as a hospitality company to acquire the bakery and confectionary business alongwith brand Birdy’s Bakery and Patisserie from WAH Restaurants Private Limited.
The acquisition was done via a Business Transfer and Intellectual Property Assignment Agreement dated December 27, 2019 (Acquisition Agreement). After that the company proceeded to invest in the business and grow the brand and spread presence.
The brand Birdy’s was originally set up as “Birdy’s by Taj”. Over a period, it was sold to WAH Restaurants Pvt Ltd and from them the same was acquired by us vide above referred Acquisition Agreement. The primary focus of our Company was to bring back the quality and sheen of the brand.
Company is engaged in the sale of following broad categories of products:
- Cakes & Pastries.
- Food Sale.
- Beverages.
- Desert Sales.
Company’s Business Model
For the brand Birdy’s, Company will focus on two models.
One is a pure take away with a small real estate footprint. This will be focused on a high online business customer base. The advantage of this small footprint and low capex model is the possibility of scale. We can be available to the customer in his neighborhood/ on the phone.
The second will be a café model that would include seating and have an experiential attraction to customers. These brand stores would showcase all the offerings of the brand and have many products made/baked live at the café. A selection of merchandise including hampers and gifting products will also be showcased in these cafés. A combination of these would be rolled out in different real estate markets.
Company Plans to Acquire Some brand Rights for Expansion:
The company will look to acquire brands of different styles that are scalable. These brands would offer popular cuisines in a casual dining format. This would enable them to have a lower real estate footprint.
These brands would have processes where bulk of the production is done in the central kitchen and the restaurant kitchens are more final assembly/finishing areas. This would mean lower skill requirements and hence lower staff costs. It would also lead to consistency and ease of roll out.
The company is in the process of acquiring the brand rights for popular brands under these categories and roll them out. These brands have had a proven track record and enjoy good brand recall. They have a format of being medium sized and easy to scale.
Company Plans to acquire Brand Rights from the following Brands:
- Pizzeria.
- Roti.
- China Joe.
- Just Around the Corner.
- Not Just Jazz by The Bay.
Note: The company is funding this acquisition through raising funds via debt as well as internal accruals. Between the brand Birdy’s with two formats and the 6 casual dining restaurants, the company will execute an expansion in India and use a cluster approach to capture market share.
Franchisee owned stores and Company owned stores revenue break up is set forth below: (₹ in lakhs, except for percentage)
Management Team:
- Srinidhi V Rao (Designation:Managing Director)
- Vandana Srinidhi Rao (Designation: Chairman & Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.16.47 cr)
- Funding additional Working capital requirements.
- Pre-payment/Repayment, in full or part, of certain outstanding borrowings availed by our Company.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding additional working capital requirements | 1.0 cr |
| Pre-payment/Repayment, in full or part, of certain outstanding borrowings availed by our Company |
11.15 cr |
| General Corporate Purposes | 3.95 cr |
| Net Proceeds | 16.10 cr |
Positives for the Company:
Strong Brand recognition.
- The brand Birdy’s was originally set up as “Birdy’s by Taj”. Over a period, it was sold to WAH Restaurants Pvt Ltd and from them the same was acquired by us vide the Acquisition Agreement.
- The primary focus of the Company was to bring back the quality and recognition of the brand. Company did that over a period of last few years by a series of initiatives.
Chain of Stores spread across Mumbai region.
- Company is a chain of gourmet Bakery and Patisserie spread across Mumbai and Thane through 17 retail stores, a centralized production facility and multiple corporate clients.
- This presence helps company to serve customer in major part of city and create satisfactory base of customers.
- The Company after acquisition of Birdy’s brand has renovated more than half the shops. These shops now boast of seating, music ambience, table service, free library and freshly made food and beverages. These cafes attract a new category of customers called dine- in which was absent earlier.
Experienced Promoter and management team with strong industry expertise.
- The Promoters of Company, Srinidhi V Rao and Vandana Srinidhi Rao, individually have 30+ years of experience in Hospitality industry. Company’s vision is to make available affordable experiential stores to meet every aspirational needs of individuals.
- Company’s leadership has led Birdy’s to be recognised as one of the trusted food chains in the Mumbai region. Further Company is managed by a team of experienced personnel. The team comprises of personnel having customer relationship, operational, marketing and business development experience.
Leveraging Company’s existing business / infrastructure.
- Birdy’s is a chain of gourmet Bakery and Patisserie spread across Mumbai and Thane through 17 retail stores, a centralized production facility and multiple corporate clients.
- Company plans to open more stores in the places which are right now not covered by us. This will help us encash the brand image of Birdy’s and will help us in achieving growth in margins due to
economies of scale. - Company also plans to add more products like chocolates, packaged snacks, cereals and Indian sweets in our store to serve varied needs of customers like breakfast, lunch, snacks and celebrations.
Supply to Institutional clients and Corporates.
- As a marketing strategy, the Company has reached out and acquired B2B clients viz. Barista, Trent House Bandra, Café Coffee Day, IBIS Hotels, Compass India, Wagh Bakri and MARS restaurants etc. to supply them various food products.
- The Company has also set corporate sales team to focus on corporate clients. Corporates have requirements of snack boxes, board meeting snacks, gifting, staff cake cutting and many such requirements.
- The sales team approaches the corporate and offers them customized solutions for the same. Though this business is working capital intensive, it gives better turnover and accordingly adds to our margins by leveraging existing infrastructure.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Nov 23 |
|---|---|---|---|---|
| Revenue | 8.25 | 11.52 | 15.31 | 8.85 |
| Net Profit | (-0.03) | 0.034 | 1.99 | 0.61 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Grill Splendour Services Ltd | 10 | 13.19 | 9.10 | 99.16% | 13.30 |
| Sapphire Foods Ltd | 2 | 36.70 | 42.77 | 18.60% | 197.33 |
| Jubilant Foodworks Ltd | 2 | 5.35 | 83.80 | 17.32% | 30.88 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th April 2024 |
| Issue Closes on | 18th April 2024 |
| Issue Price | Rs.120 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,44,000 |
| Issue Constitutes | 26.35 % |
| Issue Size | Rs.16.47 cr |
| Market Cap | Rs.62.49 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 13,72,800 (Rs.16.47 cr) |
| Equity Shares Prior to the Issue | 38,35,400 |
| Equity Shares after the Issue | 52,08,200 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th April 2024 |
| Initiation of Refunds | on or Before 22nd April 2024 |
| Credit of Equity Shares: | on or Before 22nd April 2024 |
| Listing Date: | on or Before 23rd April 2024 |
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Grill Splendour Services Ltd, known as Birdy’s, is a renowned chain of gourmet Bakery and Patisserie outlets, boasting 17 retail stores spread across Mumbai. With a centralized production facility and a strong clientele including corporate entities, Birdy’s has established itself as a prominent player in the culinary landscape of the city.
Expanding its portfolio, the company plans to acquire brand rights from several distinguished names such as Pizzeria, Roti, China Joe, Just Around the Corner, and Not Just Jazz by The Bay. This strategic move aims to diversify offerings and capture a wider market share. Birdy’s also caters to institutional clients and corporations, further solidifying its presence in the corporate catering sector. Despite its successes, Birdy’s faces concerns regarding debt, which may impact investor confidence. As a cautious approach, potential investors may opt to refrain from the initial public offering (IPO) and monitor the company’s performance post-listing. By assessing the financials over next few quarters, investors can make informed decisions about the company’s stability and growth potential before considering investment. |
| Company Contact Info: |
|---|
| Grill Splendour Services Ltd J1, Shram Siddhi Vinayak Premises Co-Op Soc Ltd C- 105, 1st Floor, Plot – 8, Wadala Truck Terminal Road, Antop Hill, Mumbai – 400 037, Maharashtra, India. Tel: +91 22 5002 9517 E-mail: ipo@birdys.in Website: www.birdys.in |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, Next to Ahura Centre, Andheri East, Mumbai – 400 093, Maharashtra, India Tel. No.: +91 22 6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| INVENTURE MERCHANT BANKER SERVICES PRIVATE LIMITED 2ndFloor, Viraj Towers, Near Andheri Flyover (North End) Western Express Highway, Andheri (East), Mumbai – 400069, Maharashtra Tel No: +91 22 4075 1500 Email: compliance@inventuremerchantbanker.com Website: www.inventuremerchantbanker.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
