IPO Details
Bidding Dates
27 Oct '23 - 30 Oct '23
Minimum Investment
₹109,200 / 1 Lots ( 1200 Shares )
Price Range
₹91
Maximum Investment
₹109,200 / 1 Lots ( 1200 Shares )
Retail Discount
Not Applicable
Issue Size
₹16.07 Cr
Investor category and sub category
Retail Investors |IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Oct 27, 2023
IPO Closing Date
Oct 31, 2023
Basis of Allotment
Nov 3, 2023
Initiation of Refunds
Nov 6, 2023
Credit of Shares to Demat Account
Nov 7, 2023
IPO Listing Date
Nov 8, 2023
UPI Mandate Expiry Date
Oct 31, 2023
IPO Subscription Details
| Date | Retail | Total |
|---|---|---|
Day 1Oct 27, 2023 |
0.80x | 1.45x |
Day 2Oct 30, 2023 |
1.73x | 2.27x |
Day 3Oct 31, 2023 |
3.05x | 3.91x |
IPO Subscription Status Live
| Investor Category | Subscription (Times) |
|---|---|
| Others | 4.76 |
| Retails Investors | 3.05 |
| Total | 3.91 |
About Shanthala FMCG Products Limited
Shanthala FMCG Products Ltd was established in 1996, focusing on the distribution of fast-moving consumer goods (FMCG) such as branded packaged foods, personal care items, educational materials, and stationery products. The company caters to prominent FMCG firms in India, striving to offer high-quality products at competitive prices, along with reliable and punctual delivery services.
In 2007, Shanthala FMCG Products Ltd attained authorised distributor status for ITC Ltd, establishing a significant partnership. The company possesses several notable strengths, including an established client base comprising major FMCG companies, a diverse range of products for distribution, enduring relationships with institutional and corporate clients, and a seasoned management team with extensive expertise in the industry.
ITC and Sunpure are the primary brands that the company distributes, with ITC being its key client. With over 27 years of industry experience, the company markets a wide portfolio of more than 450 products and services to a network of over 750 retailers. While the company has consistently been profitable, managing working capital remains a notable challenge within this industry.
According to findings from a study conducted by the India Brand Equity Foundation (IBEF), the Indian Fast-Moving Consumer Goods (FMCG) industry is expected to expand significantly, reaching an estimated market worth of $220 billion by the year 2025.
This anticipated growth is attributed to a noticeable uptick in online Business-to-Business (B2B) transactions, leading to a transformation in the conventional distribution approach. The shift is moving away from reliance on traditional wholesalers and distributors in favour of digital B2B marketplaces.
Rural consumption is on the rise due to increased income and aspirations, driving demand for branded products. The organised FMCG sector is growing as brand consciousness increases, fueled by modern retail expansion. The growing urban youth population, often too busy to cook, is boosting demand for food services.
Online platforms are vital for reaching rural areas, aided by the internet's growing reach. It's anticipated that 40% of FMCG consumption will be online by 2020, with a projected 11% increase in e-commerce's share by 2030. GST and demonetisation are expected to spur demand and drive long-term economic growth.
Shanthala FMCG Products Limited IPO Details
Shanthala FMCG Products Limited IPO Date
The IPO of Shanthala FMCG Products Limited is open for subscription from October 27, 2023 to October 31, 2023
Shanthala FMCG Products Limited IPO's Price Band
Shanthala FMCG Products Limited’s IPO is a fresh issue IPO of up to ₹16.07 crore. It is a book-building issue. The price range is set to ₹91 per share.
Shanthala FMCG Products Limited IPO’s Lot Size
The lot size for Shanthala FMCG Products Limited’s IPO is 1200 shares with a minimum investment of ₹1,09,200.
Shanthala FMCG Products Limited IPO’s Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding additional working capital requirements: The company intends to allocate ₹11.50 crore of the net proceeds of the IPO for its working capital needs in fiscal 2024 and fiscal 2025. They anticipate growth in sales by 15% in these fiscal years and the addition of Hindustan Unilever Limited (HUL) distribution agency. The working capital requirement is expected to rise due to extended credit periods to customers, increasing it from 10-12 days to 21 days to boost sales.
- General Corporate Purposes: The company intends to utilise the remaining net proceeds of ₹4 crore for general corporate purposes. This includes funding growth opportunities, strategic initiatives, partnerships, marketing, facility expansion, and meeting business expenses. The board will decide on allocation based on business needs, with a maximum limit of 25% of the fresh issue amount for these purposes.
How To Check the Allotment Status of Shanthala FMCG Products Limited’s IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Shanthala FMCG Products Limited
Registered office: 7th Block, Gandhinagar Bye Pass Road, Virajpet, Kodagu- 571218, Karnataka, India
Contact Person: Snehal Ravindra Bhagwat (Company Secretary and Compliance Officer)
Phone: +91 82742 98999
E-mail: ipo@Shanthalafmcg.com
Shanthala FMCG Products Ltd Company Financials
| Particulars | Year ending on March 31, 2023 ( ₹ Crore) | Year ending on March 31, 2022 ( ₹ Crore) | Year ending on March 31, 2021 ( ₹ Crore) |
|---|---|---|---|
| Net Sales | 40.77 | 32.55 | 39.56 |
| Sales Growth (%) | 25.25% | -17.72% | - |
| EBITDA Margin (%) | 1.69% | 1.47% | 1.65% |
| Profit After Tax (PAT) | 0.18 | 0.05 | 0.14 |
| PAT Margin (%) | 0.44% | 0.15% | 0.35% |
| Total Borrowings | 2.63 | 3.58 | 3.56 |
| Cash & Cash Equivalents | 1.37 | 0.64 | 0.48 |
| Debt to Equity Ratio(x) | 0.19 | 0.13 | 0.16 |
| Return on Equity (%) | 12.59% | 3.97% | 11.57% |
| Earning Per Share (EPS) in absolute ₹ | 3.55 | 0.90 | 2.88 |
Know before investing
Strengths
4-
Shanthala Enterprises leverages its partnership with companies like HUL and ITC to offer a wide array of products, meeting every day and aspirational customer needs.
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The company serves as the last-mile delivery agent for major consumer companies in the challenging-to-reach Coorg district. A well-trained field staff ensures consistent supplies to every retail and wholesale outlet in the area, making Shanthala a dependable partner for large consumer companies.
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Shanthala Enterprises boasts a diverse product range, encompassing branded packaged foods, personal care products, education and stationery items, matches and agarbatti, tobacco products, beauty and well-being products, nutrition, personal care, home care, and essential food items like oil, sugar, and atta.
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Shanthala Enterprises is eyeing strategic acquisitions to expand into new geographies with promising business opportunities. These acquisitions will focus on augmenting the product portfolio and penetrating new markets.
Risks
5-
Stringent health and safety laws and consumption policies related to tobacco products can impact the business and financial position.
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Operating primarily on purchase orders without long-term contracts may result in revenue and profitability fluctuations.
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The high working capital requirements for FMCG distribution can disrupt operations if not maintained optimally.
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Fluctuations in operational costs, including cost of goods sold and employee expenses, can affect business operations and financial performance.
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Ongoing legal proceedings involving the Promoter and Promoter Entities could have adverse effects on the company's business, financial condition, and results of operations.
Over-Subscribed3.91 times
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Shanthala FMCG Products Ltd IPO FAQs
Shanthala FMCG Products Limited IPO is a fresh issue of up to ₹16.07 Crore. It is a fresh book issue.
Shanthala FMCG Products Limited’s shares will be allotted on November 3, 2023.
The IPO subscription window for Shanthala FMCG Products Limited will open on October 27, 2023.
Retail investors can apply for a minimum of one lot, which is a size of 1200 shares, with a sum of ₹1,09,200.
Shanthala FMCG Products Limited will be listed on NSE SME. The stock will be listed on November 8, 2023.
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
