Madhusudan IPO: GMP, subscription status on day 2, other key details

Madhusudan Masala IPO has opened for subscription on Monday, September 18), and will close on Thursday, September 21. Madhusudan IPO price band has been set in the range of ₹66 to ₹70 per equity share of face value of ₹10 each. Madhusudan Masala IPO lot size is 2,000 equity shares and in multiples of 2,000 equity shares thereafter.

Madhusudan Masala IPO details

Madhusudan Masala IPO, which is worth ₹23.80 crores, is completely a fresh issue of 3,400,000 equity share; there is no offer for sale (OFS) component.

The company plans to use the net proceeds from the offering to meet its working capital requirements, and general corporate purposes.

Retail investors may submit an application for one lot, whereas non-institutional investors may submit an application for at least two lots. 15% of equity shares are set aside for non-institutional investors, while the company has allocated 50% of the net IPO offer to qualified institutional bidders (QIBs). The remaining 35% of the offering will be available to retail investors.

Hem Securities Limited is the book running lead manager of the Madhusudan Masala IPO, while Kfin Technologies Limited is the registrar for the issue. The market maker for Madhusudan Masala IPO is Hem Finlease.

Madhusudan Masala recorded a net profit of Rs. 575.89 lakh with revenue of Rs. 12,750.57 lakh for the fiscal year ended on March 31, 2023. In FY23, it had an EBITDA margin of 8.66% and a profit margin of 4.53%.

Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha, and Hiren Vijaykumar Kotecha are promoters of the company.

Madhusudan Masala IPO subscription status

Madhusudan IPO subscription status today was 141.64 times on day 2. The issue received positive response from retail investors who's portion set was subscribed 234.43 times, non-institutional buyers who's portion set was subscribed 104.21 times, and Qualified Institutions Buyers (QIBs) portion was subscribed 7.47 times, according to data on chittorgarh.com.

The company has received bids for 32,03,84,000 shares against 3,400,000 shares on offer, according to data on chittorgarh.com.

Madhusudan IPO subscription status today was 27.78 times on day 1.

Madhusudan Masala IPO GMP today

Madhusudan IPO GMP today or grey market premium is +55 lower to the previous trading session, where GMP was ₹59. This indicates Madhusudan Masala share price were trading at a premium of ₹55 in the grey market on Wednesday, according to topsharebrokers.com

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Madhusudan Masala share price is ₹125 apiece, which is 78.57% higher than the IPO price of ₹70.

Today IPO GMP trend is showing signals towards the upper side and expects strong listing. The lowest GMP is ₹20, while the highest GMP is ₹59, according to topsharebrokers.com

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Madhusudan Masala IPO review

“The company operates in a highly competitive and fragmented segment. Bumper performance for FY23 raises eyebrows and concerns over sustainability. Based on its super earnings for FY23, the issue appears fully priced. Well-informed/cash surplus investors may park funds for the medium to long term,” said Dilip Davda, the contributing editor at Chittorgarh.com.

Madhusudan Masala Company Details

Madhusudan Masala is engaged in manufacturing and processing more than 32 types of Spices under it’s 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, rock salt under its brand name "Double Hathi".

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

Also Read: Madhusudan Masala IPO: Latest GMP, subscription status on day 1, other key details to know