Jay Kailash Namkeen shares list at over 16% premium on BSE SME

Jay Kailash Namkeen Ltd shares made a decent debut on the BSE SME platform on April 8 (Monday), with the stock listing at a 16% premium over its issue price.

Shares of Jay Kailash Namkeen opened the session at ₹85 apiece, up 16.4% compared with its initial public offering (IPO) price of ₹73. It failed to hold up its gains and slipped soon thereafter to hit the 5% lower circuit at ₹80.75.

Considering that retail investors had to bid for a minimum of 1,600 shares in the Jay Kailash Namkeen IPO, successful bidders who were allotted shares would be sitting on a profit of at least ₹12,400 (₹7.75 x 1,600) on Monday morning.

The Jay Kailash Namkeen IPO, which was open for subscription from March 28 to April 3, was overbooked by 38 times after the end of the four-day bidding period.

The retail segment had seen an oversubscription of almost 51 times, while the portion reserved for non-institutional investors was overbid 54.5 times. The qualified institutional buyers’ segment saw a subscription of just 2.3 times.

The Jay Kailash Namkeen IPO was a 100% book-built issue that aimed to raise a total of ₹11.93 crore. The IPO was entirely a fresh issue of 16.34 lakh shares of face value of ₹10 each.

As mentioned earlier, the price band for the IPO was fixed at ₹70-73 per share, while the lot size was 1,600 shares.

Jay Kailash Namkeen had appointed Expert Global Consultants Pvt. Ltd as the book-running lead manager of the public issue, while Skyline Financial Services Pvt. Ltd was the registrar. The market maker for the Jay Kailash Namkeen IPO was Rikhav Securities.

Established in 2021, Jay Kailash Namkeen Ltd manufactures premium packaged Indian snacks. The company has a wide array of Indian snacks, ranging from traditional favourites like Chana Jor Namkeen and Masala Chana to innovative offerings like Soya Sticks and Garlic Sev Murmura. With 186 SKUs across 56 products, the company caters to various consumer preferences and price points, offering packs of ₹5, ₹10, 200 grams, 400 grams, 500 grams, 5 kilograms and 20 kilograms.

Jay Kailash Namkeen has a production facility in Rajkot, Gujarat. The company has customers in states like Assam, Bihar, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana and Uttar Pradesh.

Surprisingly, the company’s revenue had slipped during 2022-23 to ₹9.87 crore compared with ₹10.4 crore in 2021-22 and 13.14 crore in 2020-21. The profit after tax (PAT) had jumped to ₹88.8 lakh in FY23 compared with ₹54.5 lakh in FY22 and ₹8.8 lakh in FY21.

For 2023-24, during the first eight months till November 2023, the company has recorded a revenue of ₹6.46 crore, with a PAT of ₹40.45 lakh.

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