BackShankar Sharma-backed Annapurna Swadisht's IPO opens for subscription. All you need to know
Annapurna Swadisht's shares will list on the SME platform of National Stock Exchange (NSE Emerge)
PremiumThe initial public offering (IPO) of Annapurna Swadisht Ltd (ASL) has opened for public subscription on Thursday, September 15 and the issue will conclude on Monday, September 19, 2022. The price band of the share sale has been fixed in the range of ₹68-70. As of 11:30 am on day 1, the issue has been subscribed 0.73 times, as per NSE data.
The company has raised ₹8.6 crore from anchor investors. It is offering 43.22 lakh equity shares through the book-building issue. The issue constitutes 26.32% of the post-issue paid-up capital of the company.
The company's shares are expected to list on September 27, 2022 on the SME platform of National Stock Exchange (NSE). NIFTY SME EMERGE Index is designed to reflect the performance of a portfolio of eligible small and medium enterprises that are listed on NSE EMERGE platform.
Annapurna Swadisht is engaged in the manufacturing of snacks and food products under its own brand “Annapurna" in Eastern India, namely, Fryums, cakes, candys, namkeen, chips and Gohona Bori. It has a network of around 300 distributors and 80 super distributors.
Marquee investor Shankar Sharma has 1.03% stake or 1,25,000 equity shares in the company, as per the company's DRHP. Key promoters of the company are Ritesh Shaw who has 61.57% stake and Shreeram Bagla with 8.26% equity.
“We are positive on ASL for long term as the FMCG Snack market in India offers a huge runway for growth over the next 3-5 years ahead. The growth of this sector is well complemented by the growth in the Tier 1 and Tier 2 markets The company’s networth after the proposed IPO will total ₹54.91 crs and post IPO the equity capital will stand at ₹16.42 crore," said brokerage Profitmart in a note.
The brokerage said it is confident that Annapurna Swadisht Ltd will deliver consistent performance. "ASL management is confident of a ATO of 10-11x going ahead for its expanded capacity which means that benefits of proposed expansion will be felt strongly from FY24 onwards," it added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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