Jeyyam Global Foods to Launch IPO on Sep 2 for Expansion and B2C Foray

Jeyyam Global Foods Ltd, a company known for processing and supplying Bengal gram Channa and fried gram, is set to launch its Initial Public Offering (IPO) on September 2. The company aims to raise between Rs 80 crore and Rs 82 crore to support its expansion plans, according to an official statement on Saturday.

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The funds raised will be used for entering the business-to-consumer (B2C) segment, capital expenditure, and expanding the product portfolio. Shrreyans Mehta, a group member, mentioned that the company has identified 99 clusters across India for procuring fried gram and polished channa. The cleaning and grading will be done at the procurement sites.

Expansion Plans and New Products

Jeyyam Global Foods plans to introduce soya chunks and vermicelli as part of its future product offerings. The company will establish three new manufacturing units in Latur and Nanded in Maharashtra, and Indore in Madhya Pradesh. This expansion will increase the production capacity of fried gram by 30%, from the current 55,000 tonnes per year.

The company's cleaning and grading capacity for Bengal grams Channa and fried grams will also be scaled up to 2.15 lakh tonnes annually. Additionally, the production of Besan Flour will rise from 10,000 tonnes to 40,000 tonnes per year. These expansions are part of the company's strategy to meet growing demand.

Details of the IPO

The IPO price band is set between Rs 59 and Rs 61 per equity share. The offer includes up to 1,34,32,000 equity shares with a face value of Rs 5 each. This consists of a fresh issue of up to 1,20,88,800 equity shares and an offer for sale of up to 13,43,200 equity shares. At the lower end of the price band, the company aims to raise Rs 79.25 crore, while at the higher end, it seeks Rs 81.94 crore.

Vishal Kumar Garg, Director at Corpwis Advisors Pvt Ltd, stated that Anchor Investor Bidding would commence on August 30. The IPO will open on September 2 and close on September 4. The funds raised will be allocated as follows: Rs 19 crore for capital expenditure, Rs 35 crore for working capital needs, and the remaining amount for general corporate purposes.

Financial Performance

Jeyyam Global Foods reported revenues of Rs 250 crore in March 2022, which increased to Rs 320 crore in March 2023 and further surged to Rs 630 crore in March 2024. For the current financial year, the company expects its top line to reach between Rs 750 crore and Rs 780 crore.

The company's promoters include Managing Director Amit Agarwal, Sales and Marketing Head Shripal Veeramchand Sanghvi, Sujathaa Mehta Shanti Guru Industries Ltd. These leaders have been instrumental in driving the company's growth and expansion strategies.

The upcoming IPO marks a significant step for Jeyyam Global Foods as it seeks to enhance its market presence and product offerings through strategic investments and expansions.