MagSon Retail and Distribution Limited (MRDL) was established in 2009. It provides premium quality gourmet, frozen and global food products in India. MagSon has more than 26 retail stores, of which 16 are operated by them, 7 are run by franchise owners and the remaining 3 stores are run under 2 joint ventures, MRDL operates all its stores under the registered brand name “MagSon”.
They have a 14,000 sq. ft. warehouse in Ahmedabad to manage their inventory. MagSon gets 75% of its products from manufacturers. This eliminates the need for middlemen and enables them to make high margins. MagSon also launched its own brand RF Gourmet in December 2021, to provide various edible products like Eggs, Chicken Seekh Kebabs, French Fries and more. They also have a presence in e-commerce and online shopping.
MagSon Retail And Distribution Limited IPO Details
MagSon Retail and Distribution is a 100% fresh IPO worth Rs. 13 crore. The issue comprises 21,14,000 shares and is priced at Rs. 65 apiece. Retail investors can bid for the MagSon Retail And Distribution Limited IPO that will open on 23rd June 2023. MagSon Retail And Distribution Limited’s IPO will list on the NSE exchange on 6th July 2023.
MagSon Retail And Distribution Limited IPO Objectives
The objectives of MagSon Retail And Distribution Limited's IPO are listed below:
- To start new stores, storage facilities and backward integration of business by food processing and packing under their own brand.
- To meet the working capital requirements.
- For general corporate expenses.
- To meet the expenses of the issue.
Peer Details
Retail supermarkets like Big Bazaar, D-Mart, Star Bazaar and Reliance Retail are MagSon’s competitors. Also, along with the e-commerce companies like Amazon, Big Basket, Jio Mart, Blinkit, and Swiggy Instamart, unorganised retail kirana and gourmet shops are also considered their competitors.
Highlights of MagSon Retail And Distribution Ltd
- MagSon Retail And Distribution Ltd is one of the largest chains of frozen and gourmet foods in Gujarat.
- They have 26 retail stores, which include 7 franchise stores.
- 75% of their products are procured directly from the manufacturers avoiding middlemen costs.
Company Financials
| Financial year | As of 31st October 2022 (Rs. lakhs) | Year ending on 31st March 2022 (Rs. lakhs) |
|---|---|---|
| Total Revenue | 3,635.30 | 5,554.38 |
| Profit After Tax (PAT) | 125.43 | 223.36 |
| Net Worth | 699.58 | 574.06 |
| Total Borrowings | 546.62 | 344.72 |
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Strengths
3The company is engaged in providing premium, gourmet and frozen foods. 75% of their products are procured directly from manufacturers, which cuts down middlemen costs.
The company has its own gourmet food brand, RF Gourmet.
The company is in plans to expand the number of retail stores, which will help them to increase its revenue and profits.
Risks
3The competition in the food industry is huge. There are several big players, like Big Bazar, Reliance Retail, etc. in the market, which can be a threat.
The company has its own gourmet food brand, RF Gourmet. Increased competition in the frozen food market and changes in laws in the retail sector could be a threat.
The company is not as well-known as larger companies, which could make it more difficult for it to raise capital in the future.
