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01 May 2024

Italian Edibles Limited IPO

Italian Edibles Ltd. (IEL) is a manufacturer and supplier of Confectionery products. It in a broader sense implies the preservation of sweet delicacy preparation in the form of candies, caramels, chocolate, processed cocoa and milk and traditional Indian confections. Keeping in mind the company's mantra "Sharing is Everything" and "Delightful Creation and Boundless Joy", the company has been manufacturing delicious mouthwatering confectionery products for the last 14 years. Its confectionery products are sold under the brand name of "Ofcour's". It offers a wide range of confectionery such as Rabdi, Milk Paste, Chocolate Paste, Lollipops, Candies, Jelly Candies, Multi-Grain Puff Rolls, Fruit Based Products to customers.

India being a country with different cultures, many festivals and occasions, celebration with confectioneries plays a major role in those special occasions, festivals etc. Italian Edibles IPO is a fixed price issue of Rs 26.66 crores. The issue is entirely a fresh issue of 39.2 lakh shares. Italian Edibles IPO price is ₹68 per share. The minimum lot size for an application is 2000 Shares. First Overseas Capital Limited is the book running lead manager of the Italian Edibles IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Italian Edibles IPO is Nikunj Stock Brokers.

Italian Edibles IPO Overview

Detail	Description
IPO Date	February 2, 2024 to February 7, 2024
Listing Date	February 12, 2024
Face Value	₹10 per share
Price	₹68 per share
Lot Size	2000 Shares
Total Issue Size	3,920,000 shares (aggregating up to ₹26.66 Cr)
Fresh Issue	3,920,000 shares (aggregating up to ₹26.66 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Share holding pre issue	10,857,151
Share holding post issue	14,777,151
Market Maker portion	200,000 shares Nikunj Stock Brokers

Italian Edibles IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Friday, February 2, 2024
IPO Close Date	Wednesday, February 7, 2024
Basis of Allotment	Thursday, February 8, 2024
Initiation of Refunds	Friday, February 9, 2024
Credit of Shares to Demat	Friday, February 9, 2024
Listing Date	Monday, February 12, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 7, 2024

Italian Edibles IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹136,000
Retail (Max)	1	2000	₹136,000
HNI (Min)	2	4,000	₹272,000

Italian Edibles IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	-
Market Maker Shares Offered	200,000 (5.10%)
Other Shares Offered	1,860,000 (47.45%)
Retail Shares Offered	1,860,000 (47.45%)
Total Shares Offered	3,920,000 (100%)

Italian Edibles IPO Promoter Holding

Share Holding Pre Issue	100.00%
Share Holding Post Issue	73.47%

Company & Financials

Founded in 2009, Italian Edibles Limited offers a wide range of confectionery products such as Rabdi, milk paste, chocolate paste, lollipops, candies, jelly sweets, multigrain puffed buns, and fruit-based products under its OfCour's brand. The company has two manufacturing facilities at Gram Palda, Indore and Prabhu Toll Kanta, Indore (Madhya Pradesh). IEL's consumer segments largely include teenagers, young adults and children located in rural and semi-urban areas of India. Apart from selling its confectionery products within India, it also exports to various countries such as Nigeria, Yemen, Senegal and Sudan. As of August 31, 2023 its top customers include Chocolate World, Yuvraj Agency, Bakewell Biscuits Private Limited, R. K. Prabhavati Traders, Mamta Stores, Ma Laxmi Traders, Suria Distributor etc. Also, one of its product, i.e Jelly Candies are sold to Dharampal Premchand Ltd (BABA) group. It has approximately 450 Suppliers and distributors located across 22 states in India and has exported products through a network of 5 merchant exporters. Its distribution network within India and outside India and well-established brand has enabled it to effectively manage marketing strategy, market penetration and thereby increase turnover over the years.

Italian Edibles Limited Financial Information

Period Ended	31 Aug 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	4,824.64	4,155.24	3,905.45	3,946.43
Revenue	3,052.16	6,330.09	7,545.25	4,899.44
Profit After Tax	209.68	264.21	80.21	86.52
Net Worth	1,287.92	1,078.24	814.03	583.82
Reserves and Surplus	202.21	906.82	642.60	433.82
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	24.50%
ROCE	19.32%
Debt/Equity	1.6
RoNW	24.50%
P/BV	1.08

	Pre IPO	Post IPO
EPS (Rs)	2.43	3.41
P/E (x)	27.94	19.97

Objectives of Italian Edibles IPO

The Net Proceeds from the Issue are proposed to be utilized by the company for the following objectives:-

1. Setting up of the proposed manufacturing unit.
2. Repayment of certain Borrowings.
4. General Corporate Expenses.

Italian Edibles IPO Review

The company is in the business of confectioneries and other food items. It posted inconsistency in its top line and a surprising boost in bottom lines from FY23 onwards. Based on annualized super earnings for FY24, the issue appears fully priced. Recent performance appears to have been cooked up. The company is operating in a highly competitive and fragmented segment. There is no harm in skipping this issue.

FAQs for Italian Edibles IPO

What Is The Allotment Date Of The Italian Edibles IPO?

The allotment date of the Italian Edibles IPO is February 8, 2024.
What Is The Price Band Of The Italian Edibles IPO?

The company is going to issue shares at INR 68 per share.
What Is The Size Of The Italian Edibles IPO?

The issue includes a fresh Issue of up to 39,20,000 Equity Shares of the Company at INR 68 per share, totaling INR 2665.60 lakhs. The company intends to use the funds raised for manufacturing setup, debt repayment, working capital, and corporate expenses funding.
What Is The Listing Date Of The Italian Edibles IPO?

The listing date of the Italian Edibles IPO is February 12, 2024.