Jeyyam Global Foods Limited IPO Review
Neutral61-61 · SME
✦
Analyst Verdict
Jeyyam Global Foods Limited IPO
Neutral
IPO at a Glance
Price Band
61-61
Issue Size
82cr
Min. Investment
₹1,22,000
Opens
2024-08-31
Closes
2024-09-02
Listing
2024-09-07
Category
SME
Key Strengths
✓“Jeyyam” brand is known best for its quality. The company ensures that FSSAI ISO 9001:2015 and ISO 22000:2018 standards are followed.
✓The company’s manufacturing facilities are completely automated and enabled with soft touch technology to ensure the production of hygienic products with minimal human intervention to retain the nutrient content of the products.
✓The company specializes in manufacturing and processing of Bengal Gram, Fried Gram, and Besan flour with its significant R&D on processing. It does not have a major competitor focused solely on Chana-related products.
Key Risks
⚠The company’s 63% revenues are dependent on its top 10 customers. Any inability to maintain such business may hurt its operations.
⚠Its trade receivable days and the working capital cycle days have increased compared to the past 3 financial years from 15 as of March 2023 to 19 as of March 31, 2024. In addition to the same, its working capital cycle days have also increased from 42 as of March 2023 to 47 as of March 31, 2024.
⚠The Trading in the securities of one of the promoter companies i.e. Shanti Guru Industries Limited has been suspended by BSE Limited in the past for non-compliance with the SEBI requirements.
⚠The business is subject to seasonality as the chana crop is sown between October to December period and harvested between March and May. The primary impact of seasons on the business is pricing w.r.t the procurement of raw chana, which may adversely affect the business.
⚠The business is manpower intensive. The business may be adversely affected by work stoppages, increased wage demands by the employees, or an increase in minimum wages, if they are unable to engage new employees at commercially attractive terms.
Frequently Asked Questions
Should I apply for Jeyyam Global Foods Limited IPO?
Based on our analysis, our rating for Jeyyam Global Foods Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Jeyyam Global Foods Limited IPO?
The company’s 63% revenues are dependent on its top 10 customers. Any inability to maintain such business may hurt its operations. Its trade receivable days and the working capital cycle days have increased compared to the past 3 financial years from 15 as of March 2023 to 19 as of March 31, 2024. In addition to the same, its working capital cycle days have also increased from 42 as of March 2023
What are the strengths of Jeyyam Global Foods Limited IPO?
“Jeyyam” brand is known best for its quality. The company ensures that FSSAI ISO 9001:2015 and ISO 22000:2018 standards are followed. The company’s manufacturing facilities are completely automated and enabled with soft touch technology to ensure the production of hygienic products with minimal human intervention to retain the nutrient content of the products. The company specializes in manufactur
What is the price band of Jeyyam Global Foods Limited IPO?
The price band for Jeyyam Global Foods Limited IPO is 61-61. The IPO has closed.
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