Sat. Sep 30th, 2023
    Madhusudan Masala IPO Opens for Subscription

    The Madhusudan Masala Initial Public Offering (IPO) has begun its subscription on Monday, September 18 and will close on Thursday, September 21. The IPO price band has been set between ₹66 to ₹70 per equity share with a face value of ₹10 each. The lot size for the Madhusudan IPO is 2,000 equity shares and can be purchased in multiples of 2,000 shares thereafter.

    The IPO is a fresh issue with no offer for sale (OFS) component and is worth ₹23.80 crores. The company plans to utilize the net proceeds from the offering for working capital requirements and general corporate purposes.

    Retail investors can apply for one lot, while non-institutional investors can apply for at least two lots. 15% of equity shares have been reserved for non-institutional investors, 50% for qualified institutional bidders (QIBs), and the remaining 35% for retail investors.

    Hem Securities Limited is the book running lead manager of the Madhusudan Masala IPO, with Kfin Technologies Limited acting as the registrar. Hem Finlease is the market maker for the IPO.

    Madhusudan Masala reported a net profit of Rs. 575.89 lakh and revenue of Rs. 12,750.57 lakh for the fiscal year ended March 31, 2023. It had an EBITDA margin of 8.66% and a profit margin of 4.53% during this period.

    The promoters of the company are Dayalji Vanravan Kotecha, Vijaykumar Vanravan Kotecha, Rishit Dayalaji Kotecha, and Hiren Vijaykumar Kotecha.

    On the first day, the Madhusudan IPO subscription status stood at 6.14 times oversubscribed. The issue received positive response from retail investors, non-institutional buyers, and qualified institutional buyers (QIBs), with each segment being oversubscribed. According to data on, the issue received bids for 1,38,84,000 shares against the 3,400,000 shares on offer.

    In the grey market, Madhusudan Masala IPO had a premium of ₹59, indicating investors’ willingness to pay more than the IPO price. Based on the upper end of the price band and the premium in the grey market, the estimated listing price of Madhusudan Masala shares is ₹129 apiece, which is 84.29% higher than the IPO price.

    ‘Grey market premium’ represents investors’ readiness to pay more than the issue price and can be seen as an indication of market sentiment towards the IPO.

    According to Dilip Davda, the contributing editor at, the company operates in a highly competitive and fragmented segment. He also expressed concerns over the sustainability of the company’s bumper performance for FY23. However, he stated that well-informed and cash surplus investors may consider investing in the IPO for the medium to long term.

    Madhusudan Masala is engaged in the manufacturing and processing of more than 32 types of spices under its own brand names “Double Hathi” and “Maharaja.” The company also deals in whole spices, papad, soya products, asafoetida (hing), black salt, and rock salt under the brand name “Double Hathi”.