Jeyyam Global Foods Ltd, a company known for processing and supplying Bengal gram (Channa) and fried gram, has announced plans to launch an Initial Public Offering (IPO) on September 2, 2024. The company aims to raise between Rs 80 crore and Rs 82 crore to support its expansion efforts.
According to Shrreyans Mehta, a member of the group, the funds will be used for expanding into the business-to-consumer (B2C) market, capital expenditure, and broadening their product range. The company has identified 99 clusters across India for procuring fried gram and polished channa. They plan to clean and grade the products at these procurement sites and will also be launching new products like soya chunks and vermicelli.
The funds raised from the IPO will also be used to set up three new manufacturing units. These units will be located in Latur and Nanded in Maharashtra, and Indore in Madhya Pradesh. The company plans to increase the production capacity of fried gram by 30 percent from the current 55,000 tonnes per year. The capacities for cleaning and grading Bengal grams (Channa) and fried grams will be expanded to 2.15 lakh tonnes per year, and Besan flour production will rise to 40,000 tonnes per year from the current 10,000 tonnes.
The IPO price range has been set between Rs 59 and Rs 61 per equity share. The offer includes up to 1,34,32,000 equity shares of face value Rs 5 each, with a fresh issue of up to 1,20,88,800 shares and an offer for sale of up to 13,43,200 shares. The company expects to raise Rs 79.25 crore at the lower end of the price band and Rs 81.94 crore at the higher end.
Of the funds raised, Rs 19 crore will be allocated for capital expenditure, Rs 35 crore for working capital, and the remaining balance for general corporate purposes. The Anchor Investor Bidding is set for August 30, 2024, while the IPO will open on September 2 and close on September 4.
Jeyyam Global Foods has shown strong growth over the years, with revenues of Rs 250 crore in March 2022, Rs 320 crore in March 2023, and Rs 630 crore in March 2024. The company expects to achieve a top-line figure of Rs 750-780 crore for the current financial year.
