Vandan Foods IPO: Everything You Need to Know About the Upcoming Offering

Vandan Foods Limited is preparing to launch its Initial Public Offering (IPO) with a fixed price issue of 26.50 lakh shares. The entire issue comprises a fresh issue of 26.50 lakh shares, which means that all the shares being offered are newly issued by the company, and no existing shareholders will be selling their stakes as part of the offering.

IPO Details

• IPO Dates: The specific dates for the Vandan Foods IPO have not yet been announced.

• Allotment Date: The allotment of shares is expected to be finalized after the IPO closes, but the exact date remains unconfirmed.

• Issue Price: The price band for the IPO has not yet been disclosed.

• Face Value: Each share has a face value of ₹10.

• Total Issue Size: The offering consists of 26,50,000 shares, with the total value of the issue yet to be determined.

• Fresh Issue: All 26.50 lakh shares are part of a fresh issue, which means the company will raise new capital through the offering.

• Issue Type: This is a fixed price issue IPO.

• Listing Exchange: The company plans to list its shares on the BSE SME platform, which is designed for small and medium-sized enterprises.

• Pre-Issue Shareholding: Before the IPO, Vandan Foods Limited’s total outstanding shares are 57,44,800.

IPO Reservation Details

The shares offered through the IPO will be allocated in the following manner:

• Retail Investors: 50% of the net issue is reserved for retail investors.

• Other Investors: The remaining 50% of the net issue is reserved for non-retail investors.

Management of the IPO

• Book Running Lead Manager: Nirbhay Capital Services Private Limited is managing the IPO process.

• Registrar: Bigshare Services Pvt Ltd is appointed as the registrar for the IPO, responsible for handling share allotment and investor-related services.

Investors and analysts can refer to the company’s Draft Red Herring Prospectus (DRHP) for more detailed information about the IPO, including financial performance, business model, and risk factors.

About Vandan Foods Limited

Founded in 2015, Vandan Foods Limited is a manufacturing company specializing in Refined F.S.G. Castor Oil and Castor De-Oiled Cake. The company operates under both Business-to-Business (B2B) and Business-to-Consumer (B2C) models, focusing heavily on product quality, efficient inventory management, and customer satisfaction.

Business Operations and Reach

Vandan Foods Limited’s manufacturing facilities are located in Dhinoj Patan, Gujarat. The company distributes its products across several Indian states, including:

• Gujarat

• Haryana

• Andhra Pradesh

• Delhi

• Bihar

• Rajasthan

• Telangana

Product Portfolio

The company manufactures two primary products:

1. Refined Castor Oil First Stage Grade (F.S.G.):

• This is a refined and bleached castor oil used across various industries, including:

• Lubricants

• Paints

• Pharmaceuticals

• Textiles

• F.S.G. Castor Oil is also known for its health benefits, including its ability to relieve constipation and promote hair and skin health.

2. Castor De-Oiled Cake:

• A byproduct of castor oil production, this is a natural fertilizer rich in nitrogen, phosphoric acid, and potash.

• It enhances soil microbial activity and serves as an environmentally friendly alternative to chemical fertilizers.

Workforce

As of September 30, 2024, Vandan Foods Limited has a total of 16 permanent employees.

Competitive Strengths

Vandan Foods Limited has established a strong position in the market due to several key advantages:

1. Experienced Leadership and Management Team:

The company benefits from the expertise of experienced promoters and a capable management team, contributing to smooth decision-making and strategic growth.

2. Focus on Quality Control:

Stringent quality control and assurance processes ensure that the products meet industry standards and customer expectations.

3. Diversified Business and Customer Base:

Operating under both B2B and B2C models allows the company to reach a broad customer base and minimize business risks associated with dependency on a single market segment.

4. Scalable Business Model:

The company’s operational structure allows for scalability, supporting future growth and increased production capacity.

5. Efficient Operations:

Streamlined production and distribution processes help maintain cost efficiency and operational stability.

6. Resource Optimization:

The company emphasizes the optimal use of resources, reducing waste and maximizing profitability.

Financial Overview

Vandan Foods Limited has published its financial performance details in its restated financial statements. The key financial data for recent periods are as follows:

Vandan Foods Limited’s IPO presents an opportunity for the company to raise fresh capital to support its business expansion and operational growth. The company’s strong market presence in the castor oil and fertilizer sectors, combined with its experienced leadership and efficient operations, positions it well for future growth. However, prospective investors should carefully review the company’s DRHP and financial disclosures before making any decisions.