The initial public offering (IPO) of small and medium-sized enterprise (SME) Madhusudhan Masala is set to open for subscription on Monday, September 21. The homegrown spice manufacturer has announced a price band of ₹66 to ₹70 per share for the public issue.
The Madhusudhan Masala IPO, which is a book-built issue with a total value of ₹23.80 crore, will close on Thursday, September 21. The allotment of shares is expected to be finalized on Tuesday, September 26, with the listing on the NSE SME planned for Tuesday, October 3, 2023.
The IPO comprises the sale of 34 lakh fresh equity shares, each with a face value of ₹10. The lot size for the IPO is set at 2,000 equity shares, with a minimum investment requirement of ₹140,000 for retail investors. Retail investors are eligible to apply for a single lot, while non-institutional investors can bid for a minimum of two lots.
Madhusudhan Masala has reserved 1.72 lakh equity shares for market maker portions. Qualified institutional bidders (QIBs) have been allocated 50% of the net IPO offer, while 15% of equity shares are reserved for non-institutional investors. Retail investors will have access to the remaining 35% of the offering.
The net proceeds from the IPO will be utilized for the company’s working capital requirements, general corporate purposes, and to cover issue-related expenses. The book running lead manager for the IPO is Hem Securities Limited, with Kfin Technologies Limited serving as the registrar. Hem Finlease is the market maker for the Madhusudhan Masala IPO.
Madhusudhan Masala is an established spice manufacturer engaged in the production and processing of over 32 types of spices under its 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.” With a manufacturing facility located near Jamnagar, Gujarat, the company has a strong distribution network of 2,100 wholesalers and 3,700 retailers in Gujarat, Maharashtra, and Rajasthan.