Gemini Edibles & Fats India IPO - 7 Things to Know
Gemini Edibles & Fats India Ltd had filed the DRHP for its proposed IPO back in August 2021 and in September 2021, the IPO was put in abeyance by SEBI. Later in November 2021, SEBI approved the IPO, but the company is yet to announce the IPO dates.
7 Important Things to Know About Gemini Edibles & Fats India IPO
1) Gemini Edibles & Fats India Ltd has filed for a Rs.2,500 crore IPO with SEBI which comprises entirely of an offer for sale of Rs.2,500 crore and there will be no fresh issue component in the issue. The company is a market leader in the sunflower oil category and is predominantly based out of the Southern states of Telangana and Andhra Pradesh.
2) Out of the total issue of Rs.2,500 crore, promoters Pradeep Kumar Chowdhary and Alka Chowdhary will be offering shares worth Rs.25 crore and Rs.225 crore respectively. In addition Golden Agri International Enterprises will offer shares worth Rs.750 crore, Black Riverfood will offer shares worth Rs.1,250 crore and Commercial Enterprises Pte Ltd will offer shares worth Rs.250 crore in the OFS.
3) Gemini Edibles & Fats India Ltd is a market leader in the sunflower oil segment, which also classifies as a healthy oil. It sells its cooking oil under the Freedom Brand in the states of Telangana, Andhra Pradesh and Odisha. The oil is sold principally under 3 key verticals viz. branded retail consumer, industrial consumers and bulk merchandising.
4) Gemini Edibles & Fats India Ltd has 3 port based manufacturing facilities on the Eastern coast of India. Two manufacturing facilities are located in the Kakinada port area while one is located in the Krishnapatnam port area. Apart from sunflower oils, Gemini also sells other premium health brands like rice bran oil, mustard oil and groundnut oil.
5) The product portfolio of the company has tremendous reach. Its branded retail products are sold across 640 towns located spanning the states of Odisha, Telangana, Andhra Pradesh and Karnataka. It also has a network of over 1,100 distributors serviced by over 30 depots at multiple locations. The Freedom brand is available across more than 2.60 lakh retail outlets in India with a strong hold in rural and semi-urban areas also.
6) The company has reported robust financials. For Fiscal 2021, the company reported 19.5% YoY growth in revenues at Rs.7,766 crore. At the same time, the net profits on a YoY basis grew by a whopping 207% at Rs.571 crore. This implies net profit margins for the fiscal year 2021 at 7.35%, which is attractive in such a retail-intensive business.
7) The Gemini Edibles & Fats India IPO will be lead managed by Axis Capital, Credit Suisse Securities, Kotak Mahindra Capital and Nomura Financial Advisory. They will act as the book running lead managers or BRLMs to the issue.
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