Ashok Masala Mart Limited is a comparatively new company which was incorporated in 2014. As the name suggests, the company is essentially a company doing business in blended spice, whole spice and ground spice.The company is shortly coming up with an IPO. Ashok Masala Mart IPO review finds the details of this public issue from the DRHP (draft red herring prospectus) submitted to BSE.
About The Issue –
- Issue opens on – 07 August 2017
- Issue closes on – 11 August 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 10 per equity share
- Lot size – 10000 equity shares or in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 2,010,000 nos. of equity shares aggregating up to 2.01 crores
- Listing Exchange – BSE SME exchange
- Issue objectives – The proceeds from the issue will be used to fulfill; a) capital requirements for purchase of new office and its furnishing expenses, b) to part finance working capital requirements, c) to meet issue expenses and d) to fulfill general corporate expenses.
About the company – Ashok Masala Mart Limited has already two established brands in the name of Appu Masala and Gayatri Masala. The company manufactures and trades more than 30 types of masalas under these two brands including some ready mix preparations. Its products include Chaat Masala, Pav Bhaji Masala, Tea Masala, Sambhar Masala, Garam Masala, Kitchen King Masala, Punjabi Chole Masala, Pulav/ Biryani Masala and various ground masalas like Red Chilli Powder, White Pepper Powder, Jeera Powder, Turmeric Powder etc.
Company Financials – Ashok Masala Mart IPO review finds the financials condition from the DRHP is as follows. The company’s revenue has been following a steady growth. But the expenses have also increased. The PAT has not been consistent, though fiscal 17 saw considerable growth in PAT margin.
Conclusion – Ashok Masala Mart IPO review finds that the company has not delivered as per expectation in the past. Therefore our review has NEUTRAL to RISKY BUY views on this IPO. If PAT can be maintained the company may give good ROI in the longer term.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.