Megastar Foods IPO – Review, Allotment Status, Subscription, Date, Price & more

Megastar Foods IPO is releasing on May 14th 2018. The Size of this IPO is INR 804 Lakhs. It is another SME IPO of 2018. In this Article, we will discuss in detail about Megastar Foods IPO Review along with in-depth understanding of their Subscription, Price band, Issue Size, Equity Shares, Company Background & more.


Megastar Foods IPO Review & Ratings

Megastar Foods IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.1/10
Industry Ranking6.2/10
Company Background6.4/10
Company Reputation6.3/10
Competitive Edge6.4/10
Financial Statements6.1/10
Popularity Index6.6/10
Promoters Reputation6.2/10
Retail Appetite6.5/10
Top Brokers Review6.3/10
Overall Ratings6.3/10
Star Ratings★★★☆☆

Summary of Megastar Foods IPO

Megastar Foods IPOIncorporated in 2011, Megastar Foods Limited is engaged in the manufacturing of food based products such as wheat flour, organic wheat flour products and allied flour products. Basically, the company produce food products related to wheat i.e. Atta-wheat flour products, Maida-Fine wheat flour products, Suji/Rawa-Semolina, Chokar/Wheat Bran, Organic Atta, Organic whole Wheat flour and Organic wheat flour etc.

Megastar Foods Limited is going public with Initial public issue of 26,80,000 equity shares of face value of Rs.10 each for cash at a price of Rs.30 per equity share (including a share premium of Rs.20 per equity share) aggregating to Rs.804 lakhs.

Out of total 1,36,000 equity shares of face value of Rs.10 each for a cash price of Rs.30 per equity share, aggregating to Rs.40.80 lakhs will be reserved for subscription by market maker. The issue less the market maker reservation portion i.e. issue of 25,44,000 equity shares of face value of Rs.10 each at an issue price of Rs.30 per equity share aggregating to Rs.763.20 lakhs.

The issue and the net issue will constitute 27.06% and 25.69%, respectively of the post issue paid up equity share capital of our company. For further details, please refer to section titled “terms of the issue” beginning on page 194 of this prospectus.

The BRLM hired by the food manufacturing company is Swastika Investment & Registrar to the offer is Skyline Financial Services Private Limited.


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Megastar Foods IPO Date

The IPO opens on May 14th 2018 & IPO closes on May 16th 2018.

Megastar Foods IPO Subscription

 SUBSCRIPTION
DAY 1x
DAY 2x
DAY 3x
DAY 4x
DAY 5x

The IPO issue date has not been announced yet. Once the IPO date has been issued, the subscription details will be updated regularly.

Megastar Foods IPO Allotment Status

Since the issue date has not been fixed yet, the Allotment Status is not out. The Allotment status will be announced about 3-4 weeks of the IPO issue date.

Megastar Foods IPO – Price Band

The face value of each share is Rs.10 and the offer price Rs.30 with premium of Rs.20 per share.

Megastar Foods IPO – Issue Size

The Issue size of this IPO is Rs.804 lakhs.

Megastar Foods IPO Equity Share Offerings

The company is offering 26,80,000 equity shares for sale.


Megastar Foods Limited – Company Overview

Megastar Foods Limited is an FSSC 22000 certified company for food safety systems including ISO 22000:2005, ISO 22002-1:2009 and additional FSSC 22000 requirements in respect of Processing (Pre Cleaning, Cleaning, milling, Sifting) of Wheat products like Atta, Maida, Suzi, Bran and its packaging in HDPE laminated bags and Poly Pouch bags by Intertek Certification Limited, United Kingdom.

Company is having FSSAI license, Organic Certificate for in accordance with the requirements of India’s National Programme for Organic Production Standards by the Ecocert India Pvt. Limited, HALAL certified by HALAL India Pvt. Ltd etc.

The Company was originally incorporated on November 28, 2011 as “Megastar Foods Private Limited” vide Registration no.033393/2011-2012 under the provisions of the Companies Act, 1956 with the Registrar of Companies, Punjab and Chandigarh.

Further, Megastar Foods was converted into Public Limited Company and consequently name of company was changed from “Megastar Foods Private Limited” to “Megastar Foods Limited” vide Special resolution passed by the Shareholders at the ExtraOrdinary General Meeting held on March 09, 2018 and a fresh certificate of incorporation dated March 16, 2018 issued by the Registrar of Companies, Chandigarh.

Key Members of the Company –

  • Vikas Goel (Chairman & MD)
  • Vikas Gupta (Whole Time Director)
  • Mudit Goyal (Whole Time Director)

Megastar Foods Limited – Financial Statements

Have a look at the financial statements of the firm before you invest in the firm.

The asset of the Company

Assets (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset1,1341,085966981205
Current Asset2,0261,9971,04333381
Total Asset3,1603,0822,0081,314NA

Revenue and PAT of the company

Revenue & Profits (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue7,836.759,776.257,804.314,450.16785.36
Profit after Tax (PAT)8710659-280

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic1.461.770.99NANA
Diluted1.461.770.99NANA

The Financial figures of the company is not very satisfying. We suggest to look for long term investment with Megastar Foods Limited IPO.


Megastar Foods Limited – Promoters

The Food Manufacturing company is being promoted by:

  • Mr. Vikas Goel
  • Mr. Vikas Gupta

The interest of Promoters in the Promotion of the company

The Promoters is interested to the extent of their shareholding in the Company, and any dividend and distributions which may be made by the Company in future.

The interest of Promoter in the Property of the company

Promoters do not have any other interest in any property acquired by our Company in a period of two years before filing of this Prospectus or proposed to be acquired by us till date of filing the Prospectus with RoC.

Any other Interest of Promoter

The Promoters Mr. Vikas Goel and Mr. Vikas Gupta are interested to the extent of their shareholding and shareholding of their relatives in the Company. Promoters Mr. Vikas Goel who is also the Chairman cum Managing Director and Mr. Vikas Gupta who is Whole Time Director of the Company may be deemed to be interested to the extent of his remuneration, as per the terms of his appointment and reimbursement of expenses payable to him. The Promoters may also be deemed interested to the extent of any unsecured loan given/taken by them to/from our Company.


G R Infraprojects IPO Offer Details or Issue Details

Equity Shares Issued:26,80,000 Equity Shares of Rs. 10/- each for cash at a price of Rs. 30/- per share aggregating to Rs. 804.00 Lakhs
Public Issue of Equity Shares by our Company
of which
Issue Reserved for the Market Makers1,36,000 Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share aggregating Rs.40.80 Lakhs
Net Issue to the Public*25,44,000 Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share aggregating Rs.763.20 Lakhs
of which
12,72,000 Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share ( including a premium of Rs.20 per Equity Share) will be available for allocation for allotment to Retail Individual Investors of up to Rs.2.00 Lacs
12,72,000 Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share ( including a premium of Rs.20 per Equity Share) will be available for allocation for allotment to Other Investors of above Rs.2.00 Lacs
Equity Shares outstanding prior to the Issue72,23,700 Equity Shares of face value of Rs.10 each
Equity Shares outstanding after the Issue99,03,700 Equity Shares of face value of Rs.10 each

NOTE: The Company is considering to raise Rs.804 lakh


Megastar Foods Limited IPO – Issue Object

The Net Proceeds from the Fresh Issue will be utilized towards the following objects:

  • To Meet Working Capital Requirement
  • General Corporate Purpose
  • To Meet the Issue Expenses

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Megastar Foods IPO – Basis of the Offer Price

The Issue Price has been determined by the Company in consultation with the LM on the basis of the key business strengths of our Company. The face value of the Equity Shares is Rs.10 and Issue Price is Rs.30/- which is 3.0 times of the face value.

QUALITATIVE FACTORS

  • Wide range of Products and hygienic
  • Existing Client Base
  • Existing Supplier Relationship
  • Experienced Promoters and Management Expertise

The relevant quantitative factors are:

  • Basic & Diluted Earnings per share (EPS), as adjusted for change in capital
  • Price Earning (P/E) Ratio in relation to the Issue Price of Rs.30/-per share
  • Return on Net worth (RoNW) is aroung 9.52%
  • Minimum Return on Net Worth after Issue to maintain Pre-Issue EPS
  • Net Asset Value (NAV) per Equity Share
  • Comparison of Accounting Ratios with Industry Peers

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Megastar Foods IPO Lead Managers

Lead Managers
Swastika Investment Limites

Megastar Foods IPO Registrar to offer

Registrar of the Offer
Skyline Financial Services Private Limited

Megastar Foods IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking6.2/106.3/106.2/106.5/106.5/10
Sharekhan6.2/106.5/106.2/106.5/106.2/10
Kotak Securities6.3/106.2/106.3/106.5/106.3/10
ICICI Direct6.3/106.3/106.3/106.5/106.5/10
IIFL6.2/106.2/106.4/106.0/106.5/10
Edelweiss6.2/106.3/106.3/106.3/106.2/10
Zerodha6.3/106.5/106.2/106.5/106.0/10
5Paisa6.5/106.5/106.3/106.5/106.5/10
Karvy6.3/106.3/106.2/106.5/106.5/10
Motilal Oswal6.5/106.5/106.2/106.3/106.2/10

 


Megastar Foods IPO Grey Market Premium

The Megastar Foods IPO Grey Market Premium is yet to be announced. It will be updated as soon as the premium rates are announced.


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Megastar Foods IPO News

News 1 – IPO ISSUES OPEN NOW


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