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|
|Top Brokers Review||6.3/10|
Summary of Megastar Foods IPO
Incorporated 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
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)|
Revenue and PAT of the company
|Revenue & Profits (in INR & Lakhs)|
|Profit after Tax (PAT)||87||106||59||-28||0|
Earnings per Equity Share
|Earning per Equity Share (in INR)|
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|
|Issue Reserved for the Market Makers||1,36,000 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|
|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 Issue||72,23,700 Equity Shares of face value of Rs.10 each|
|Equity Shares outstanding after the Issue||99,03,700 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.
- 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
|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 Review||Company Repu-tation||Compe-titive Edge||Finan-cial State-ment||Popu-larity Index||Promo-ters Repu-tation|
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
|What is IPO?|