Press ESC to close

Khyati Global Ventures Limited IPO: All You Need to Know

Spread the love

Khyati Global Ventures Limited IPO: All You Need to Know

Introduction

The IPO landscape in India continues to flourish, and one of the most anticipated offerings is the Khyati Global Ventures Limited IPO. This fixed-price issue is set to attract a variety of investors looking for growth opportunities in the fast-moving consumer goods (FMCG) sector. This blog will delve into the key details of the Khyati Global Ventures IPO, offering insights into the company, its financial performance, and what potential investors should consider.


IPO Overview

Key Dates

  • IPO Open Date: October 4, 2024
  • IPO Close Date: October 8, 2024
  • Basis of Allotment: October 9, 2024
  • Tentative Listing Date: October 11, 2024

Financial Snapshot

DetailValue
Total Issue Size₹18.30 crores
Fresh Issue10.48 lakh shares (₹10.38 Cr)
Offer for Sale8 lakh shares (₹7.92 Cr)
Price per Share₹99
Minimum Lot Size1,200 shares
Minimum Investment (Retail)₹118,800
Minimum Investment (HNI)₹237,600

The Khyati Global Ventures IPO allows retail investors to participate with a minimum investment of ₹118,800 for one lot of 1,200 shares. High net-worth individuals (HNIs) are required to bid for at least two lots, equating to an investment of ₹237,600.


Company Profile

About Khyati Global Ventures Limited

Incorporated in 1993 and previously known as Khyati Advisory Services Limited, Khyati Global Ventures Limited specializes in the export and repackaging of a wide range of FMCG products. Its offerings include:

  • Food Products
  • Non-Food FMCG Products
  • Household Products
  • Pharmaceutical Products
  • Festive Handicrafts

Khyati Global Ventures caters to a global customer base that includes wholesalers and supermarkets in over 40 countries, dealing with well-known Indian brands such as Everest, Parle G, MDH, and Haldiram’s.

Competitive Advantages

Khyati Global Ventures stands out in the FMCG sector due to its:

  1. Established Infrastructure: With four offices and a 20,000 sq ft warehouse in Navi Mumbai, the company is well-equipped for efficient operations.
  2. Diverse Product Range: The company offers a comprehensive portfolio, addressing various consumer needs.
  3. Export Focus: Khyati has a strong international presence, exporting products to over 40 countries.
  4. Experienced Management Team: The leadership has extensive experience, fostering confidence in the company’s growth trajectory.
  5. Consistent Financial Performance: The company has demonstrated steady growth, with a profit after tax (PAT) increasing from ₹149.66 lakhs in FY 2022 to ₹253.19 lakhs in FY 2024, indicating a compound annual growth rate (CAGR) of 30.07%.

Financial Performance

Key Financials

The following table summarizes Khyati Global Ventures Limited’s financial performance over the last few fiscal years:

Period EndedAssets (₹ Lakhs)Revenue (₹ Lakhs)Profit After Tax (₹ Lakhs)Net Worth (₹ Lakhs)Total Borrowing (₹ Lakhs)
30 Jun 20244,911.622,716.9294.671,773.021,708.14
31 Mar 20245,275.9710,464.09253.191,188.191,768.92
31 Mar 20233,458.909,617.14205.669351,575.05
31 Mar 20223,468.139,362.70149.66729.351,414.56

Key Performance Indicators

  • Market Capitalization: ₹69.08 crores
  • Return on Equity (ROE): 25.58%
  • Return on Capital Employed (ROCE): 17.73%
  • Debt/Equity Ratio: 1.02
  • Price-to-Book Value (P/BV): 3.31

IPO Subscription Status

As of October 4, 2024, the Khyati Global Ventures IPO was subscribed 2.86 times, with a breakdown as follows:

CategorySubscription (times)
Retail4.04
Non-Institutional Investors (NII)1.67
Other1.67
Total2.86

This robust demand reflects investor confidence in the company’s growth potential.


Objects of the IPO

The proceeds from the Khyati Global Ventures IPO will be utilized for:

  1. Funding Working Capital Requirements: Ensuring the company has sufficient liquidity for its operational needs.
  2. General Corporate Purposes: Supporting various corporate activities to enhance growth.

Khyati Global Ventures IPO Review

Recommendation: Avoid

According to industry expert Dilip Davda, while Khyati Global Ventures has shown steady growth, the current valuation appears fully priced based on FY25 annualized earnings. The company’s high debt-to-EBITDA ratio raises concerns, and investors may find better opportunities elsewhere.


Conclusion

The Khyati Global Ventures Limited IPO offers investors a glimpse into a company with a solid foundation in the FMCG sector. However, potential investors should weigh the risks and financial indicators before making investment decisions. The IPO opens for subscription from October 4 to October 8, 2024, and will list on BSE SME.

Tags:

Khyati Global Ventures IPO, Khyati Global Ventures Limited, IPO Review, SME IPO, Indian Stock Market, FMCG Stocks, Investment Opportunities


Disclaimer

This blog is for informational purposes only and does not constitute financial advice. Investing in stocks involves risks, and it is recommended to conduct thorough research or consult a financial advisor before making investment decisions.


Leave a Reply

Your email address will not be published. Required fields are marked *