Greenchef Appliances Ltd is coming out with an IPO and equity shares thus issued are proposed to be listed on the SME Platform of NSE (NSE EMERGE). Brief details on the company are as follows:
Background:
- Greenchef Appliances Limited (GAL) was started as proprietorship firm in 1999 and incorporated in 2010 by Mr. Sukhlal Jain. Chairman and Managing Director, Mr. Sukhlal Jain has an experience of three decades in this sector. His sons Mr. Praveen Kumar Sukhlal Jain and Mr. Vikas Kumar Sukhlal Jain look after sales & marketing and production respectively.
- Initially the company was into manufacture of LPG gas stoves and after sales service for other brands. Subsequently, GAL started manufacturing and selling a vast range of kitchenware and home appliances in the domestic market under the brand name of Greenchef.
- Company has four manufacturing facilities, three located in Bangalore and one in Parwanoo, Himachal Pradesh.
- Company manufactures the majority of core products and for certain products engages in sourcing from third party manufacturers both domestically and from outside India.
- Manufacturing facilities are well connected with five strategically located C&F agents in the state of Rajasthan Maharashtra, Uttar Pradesh, Gujarat and Bihar. Additionally, they have around 450 distributors in 22 states and 3 union territories of India. Further, they are approved vendors of various modern retail chains such as DMART, Reliance Retail Limited and Star Bazaar. Their products are also sold online through e-commerce platforms such as Flipkart, Jiomart, Bigbasket and Amazon.
- For the 9-month period ending 31 .12.23, close to 19% sales were through online channels.
Financial Summary:
| INR Crore | 9-m FY2023 | FY2022 | FY2021 | FY2020 |
| Revenues | 254.8 | 335.8 | 238.9 | 237.5 |
| EBITDA | 17.8 | 7.9 | 8.9 | 7.1 |
| EBITDA% | 7.0% | 2.4% | 3.7% | 3.0% |
| PAT | 10.2 | 0.7 | 2.5 | 1.1 |
| EPS | 5.9 | 0.5 | 1.4 | 0.6 |
- GAL’s EBITDA margins moderated in FY22 and stood at 2.47% when compared 4.03% in FY21 on account of continued high raw material prices along with increase in employee cost to support its expanded operations in newly added locations and also on account of under absorptions of fixed overhead cost during the year. With correction of prices of its main raw materials like aluminium sheets, steel sheets, metal scraps, plastic parts etc, EBITDA margins improved to 6.81% in 9-m FY23.
Issue Details:
- Issue Price: Rs 82-87 implying a PE of (approx) 14.7 basis TTM and the upper price band
- The entire issue constitutes fresh issue of equity shares
- The Net Proceeds are proposed to be used in accordance with the details as set forth below:
| S. No | Particulars | Amount (in cr) |
| 1 | Funding Capital Expenditure towards installation of additional plant and machinery | 5.15 |
| 2 | Funding Capital Expenditure towards construction of factory building | 25.00 |
| 3 | Funding of working capital requirement | 10.00 |
| 4 | General Corporate Purpose | TBD |
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