Jeyyam Global Foods Ltd, a Chennai-based food products company, has set a price band of ₹59-61 per share for its upcoming SME Initial Public Offering (IPO). The IPO will open for subscription on September 1, 2024, and close on September 4, 2024.

The anchor investor bidding is scheduled for August 30, 2024. The company aims to raise between ₹79.25 crore and ₹81.94 crore, depending on the final price band, according to the company’s management.

The IPO will consist of up to 1,34,32,000 equity shares with a face value of ₹5 each. This includes a fresh issue of up to 1,20,88,800 equity shares and an offer for sale (OFS) of up to 13,43,200 equity shares by promoter shareholder Sripal Veeramchand Sanghvi. The equity shares will be listed on the NSE’s SME platform.

Investors can place bids for a minimum of 2,000 equity shares and in multiples of 2,000 thereafter. Corpwis Advisors is serving as the book-running lead manager for the offer.

Utility of the proceeds

The company plans to use the proceeds from the IPO, excluding the OFS portion and issue-related expenses, for capital expenditure (₹19 crore), working capital needs (₹35 crore), and other corporate purposes. Jeyyam Global Foods intends to establish two Bengal gram (chana) cleaning and grading units in Maharashtra and an integrated unit in Madhya Pradesh that will include a cleaning and grading plant, a fried gram plant, a gram dal plant, and a gram flour plant. Additionally, the company will expand its operations in Salem, Tamil Nadu, with a new 40,000 sq ft facility.

The company plans to increase its fried gram production capacity by 30 per cent from the current 55,000 tonnes per annum, while the capacity for cleaned and graded chana will rise from 106,000 tonnes to 216,000 tonnes. The gram flour capacity will also expand to 50,000 tonnes from the current 10,000 tonnes.

Founded in 2008, Jeyyam Global Foods Ltd specialises in the manufacturing and supply of chana, fried gram, and besan flour to B2B segments. The company is now moving into the B2C segment, initially introducing products like soya chunks and vermicelli, with plans to further expand into spices, masalas, ready-to-eat foods, salt, and sugar.

Promoter holding

The company’s promoters include Shripal Veeramchand Sanghvi, Amit Agarwal, Sujathaa Mehta, Shnti Guru Industries, Sarika Sangavji, Shripal Sanghvi, and Manipal Sanghvi. Amit Aggarwal serves as the Managing Director, while Shripal Veeramchand Sanghvi is the Whole Time Director. Post-IPO, the promoters’ holding will come down to 66-67 per cent from 92 per cent earlier.

In FY24, the company reported revenues of ₹630 crore, up from ₹380 crore in FY23, with a net profit of about ₹16 crore.

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