Madhusudan Masala Ltd IPO Timeline

Madhusudan Masala Ltd IPO opens on 18-Sep-2023, and closes on 21-Sep-2023. The Madhusudan Masala Ltd IPO bid date is from 18-Sep-2023 to 21-Sep-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Madhusudan Masala Ltd IPO Opening Date 18-Sep-2023
Madhusudan Masala Ltd IPO Closing Date 21-Sep-2023
Basis of Allotment 26-Sep-2023
Initiation of Refunds 27-Sep-2023
Credit of Shares to Demat 29-Sep-2023
Madhusudan Masala Ltd IPO Listing Date 26-Sep-2023

Madhusudan Masala Ltd IPO Lot Size

Madhusudan Masala Ltd IPO lot size is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or 140000).

Application Lots Shares Amount
Minimum 1 2000 ₹140000
Maximum 1 2000 ₹140000

Madhusudan Masala Ltd IPO Details

Madhusudan Masala Ltd IPO Date 18-Sep-2023 to 21-Sep-2023
Madhusudan Masala Ltd IPO Face Value Shares of ₹10 per share
Madhusudan Masala Ltd IPO Price ₹70 per share
Madhusudan Masala Ltd IPO Lot Size 2000
Issue Size Shares of ₹10 (aggregating up to ₹23.8 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹23.8 Cr)
Offer for Sale -
Issue Type Book Building - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Funding to meet working capital requirements
  • 2 General corporate purposes

Company Financials

Madhusudan Masala Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 57.37 127.51 5.76
03-2022 35.14 66.52 0.81
03-2021 26.00 68.75 0.45
Amount in ₹ Crore
  • We have a recognized brand name with heritage and a legacy of over four decades.
  • Consistent focus on quality.
  • Long Standing Relationship with our customers.
  • Diversified product portfolio.
  • In house manufacturing capabilities.
  • The company future success depends on its ability to promote its brand and protect the company reputation. The company failure to establish and promote its brand and any damage to the company reputation will hinder its growth.
  • The company operate in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in the company net revenues and profitability.
  • The company do not manufacture some of its products such as Tea and Other Grocery Products like:Papad, Soya Products, Asafoetida (Hing), Black Salt, Rock Salt etc in its own capacity but procure the same from third party suppliers.
  • The success of processing of spices is dependent on the timely supply of raw materials to its processing unit, which are subject to various uncertainties and risks. The company is depends on third party suppliers and transport agencies, and its material prices are subject to fluctuations.
  • The improper handling, processing or storage of its raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in its products, could subject it to regulatory action, damage its reputation and have an adverse effect on the company business, results of operations and financial condition.
  • The company business also depends on the performance of its wholesalers. Any non- performance by them may adversely affect itsbusiness operations, profitability and cash flows.
  • If the company fail to successfully expand its product portfolio or fail to develop and commercialize new products that are well received by consumers in a timely manner, the company operating results may be materially and adversely affected.
  • The company is significantly dependent on the sale of chilli and chilli powder. An inability to anticipate or adapt to changing consumer tastes and preferences for these products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.
  • The markets in which its compete are characterized by consumers and their rapidly changing tastes and preferences and therefore as a result the Company may be affected by any disruptions in the industry.
  • The company is heavily reliant on its relationships with certain wholesalers. Disruptions to such relationships, changes in their business practices, their failure to meet payment schedules could adversely affect its business, cash flows and results of operations.
  • Certain aspects of its business, including procurement of raw materials are seasonal in nature.
  • The company derive a significant portion of its revenue from certain parts of Gujarat and failure to expand the company operations into new geographic regions and markets may restrict the copany growth and adversely affect its business.
  • As the company continue to grow, its may not be able to effectively manage the company growth and the increased complexity of its business, which could negatively impact the company brand and financial performance.
  • The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.
  • Pricing pressure from its competitors may affect its ability to maintain or increase the company product prices and, in turn, its revenue from product sales, gross margin and profitability may decline, which may materially and adversely affect its business, cash flows, financial condition and results of operations.
  • Certain Agreements in relation to its immovable Properties may be inadequately stamped or may not have been registered as a result of which the company title to such properties may be faulty.
  • The company operate its business from rented premises.
  • If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company business, prospects, results of operations and financial condition.
  • The company business is dependent on its manufacturing facilities and the company is subject to certain risks in its manufacturing process. Obsolescence, destruction, theft, breakdowns of the company major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.
  • The company may not be able to adequately protect or continue to use its intellectual property.
  • The Company, Promoters and Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.
  • The company is subject to strict quality requirements and any failure by it to comply with quality standards may lead to cancellation of existing and future orders.
  • The company business is operating under various laws which require its to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and the company inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.
  • An inability to comply with food safety laws, environmental laws and other applicable regulations in relation to its manufacturing facilities may adversely affect its business, financial condition and results of operations.
  • The company strategy relating to construction of new cold storage and installation of requisite plant and machinery therein is subject to the risk of unanticipated delays in implementation and cost overruns.
  • The company operating results could be materially harmed if its unable to accurately forecast consumer demand for its products or manage the company inventory.
  • Any contamination or deterioration of its products could result in legal liability, damage the company reputation and adversely affect its business prospects and financial performance.
  • The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.
  • The company has in the past entered into related party transactions and may continue to do so in the future.
  • If the company fail to identify and effectively respond to changing consumer tastes and preferences and spending patterns in a timely manner, the demand for its products could decrease, causing the company business, results of operations, financial condition and cash flows to be adversely affected.
  • Some of its Group Companies and the company Promoter Group Entities are engaged in similar line of business. Any conflict of interest in future may occur between our group company or its promoter group entities and it may adversely affect its business, prospects, results of operations and financial condition.
  • The company has significant working capital requirements. If the company experience insufficient cash flows from its operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
  • Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
  • The company contingent liabilities as stated in its Restated Financial Statements could affect its financial condition.
  • The company Group Company has incurred losses in past, any operating losses in the future could adversely affect the results of operations and financial conditions of its group.
  • The company manufacturing activities require deployment of labour and depend on availability of labour. In case of unavailability of such labour, its business operations could be affected.
  • Changes in technology may render its current technologies obsolete or require the company to make substantial investments.
  • The Company has taken unsecured loans that may be recalled by the lenders at any time.
  • Excessive dependence on Bank of Baroda in respect of Loan facilities obtained by the Company.
  • Under-utilization of its manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
  • The company is depends on its Promoters, the company senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
  • Relevant copy of educational qualifications of some of its Directors is not traceable.
  • The average cost of acquisition of Equity Shares by the company Promoters, could be lower than the issue price. Moreover Equity Shares allotted to its Promoters pursuant to conversion of partnership firm, "M/s. Madhusudan & Co" have been allotted at a price which may be lower than the Price at which the equity shares shares will be issued.
  • The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
  • Information relating to its installed capacities and the historical capacity utilization of the company manufacturing facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
  • The company ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
  • The company Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
  • Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
  • The Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.
  • Investors other than retail (including non-institutional investors, QIBs and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an Application.
  • The company Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failure or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact the company business and operations.
  • The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
  • Non-compliance with increasingly health, environmental and labour laws and other applicable regulations, may adversely affect its business, results of operations, cash flows and financial condition.
  • Industry information included in this Draft Red Herring Prospectus has been derived from an industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
  • Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.
  • Expand our market presence to other states of India and increase our distribution reach.
  • Scale up branding, promotional and digital activities.
  • Continue to strengthen our existing product portfolio and diversify into products with attractive growth and profitability prospects.
  • Modernization and Expansion in the existing manufacturing facility.
  • Focus on consistently meeting quality standards.
  • Maintaining cordial relationship with our Suppliers, Customer and employees.

Madhusudan Masala Ltd IPO Promoter Holding

Pre Issue Share Holding 99.80%
Post Issue Share Holding 73.50%

Madhusudan Masala Ltd IPO Subscription Status (Bidding Detail)

The Madhusudan Masala Ltd IPO is subscribed - times on Sep 21, 2023 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - -

Madhusudan Masala Ltd IPO Prospectus

Madhusudan Masala Ltd IPO Listing Date

Listing Date 26 Sep 23
BSE Script 91841
NSE Symbol MADHUSUDAN
Listing In NSE - SME
ISIN INE0P6701019
IPO Price ₹70
Face Value ₹10

Madhusudan Masala Ltd IPO Registrar

KFin Techologies Ltd

Phone: +91 40 6716 2222
Email: mml.ipo@kfintech.com
Website: www.kfintech.com

Madhusudan Masala Ltd IPO Lead Manager(s)

  1. Hem Securities Ltd

FAQs on Madhusudan Masala Ltd IPO

Madhusudan Masala Ltd IPO, which opens for subscription from 18-Sep-2023 to 21-Sep-2023 has an issue size of ₹23.8 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Madhusudan Masala Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Madhusudan Masala Ltd IPO Opens for subscription from 18-Sep-2023 to 21-Sep-2023.

The lot size of Madhusudan Masala Ltd is 2000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹140000 and ₹140000 respectively.

Allotment date for Madhusudan Masala Ltd is 26-Sep-2023 and refund of application amount (in case allotment is not received) will begin from 27-Sep-2023. If your allotment goes through, then shares will be credited in your Demat account by 29-Sep-2023.

The registrar for Madhusudan Masala Ltd IPO is KFin Techologies Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Madhusudan Masala Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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