Greenchef Appliances IPO: Issue to Open on June 23, Price Band Rs 82-87 Per Share
Greenchef Appliances IPO
61.63 lakh fresh shares will be issued under the Greenchef Appliances Initial Public Offering (IPO). The IPO aims to raise Rs 53.62 crore based on the upper price band.
The funds generated from this IPO will be utilized for the establishment of supplementary plant and machinery.
Greenchef Appliances (Greenchef Application) is a renowned company specializing in the manufacturing of kitchen appliances. They have recently announced their plans for an Initial Public Offering (IPO), which is set to take place as follows:
1. Issue Dates: The IPO of Greenchef Appliances will open for subscription on June 23 and close on June 27. During this period, interested investors can submit their applications to purchase shares of the company.
2. Anchor Investors: Prior to the opening of the IPO, on June 22, anchor investors will have the opportunity to bid for the shares. Anchor investors are institutional investors who commit to purchase a significant portion of the shares before the IPO opens.
3. Price Band: The IPO has a price band of Rs 82-87 per share. This means that the company has set a range within which potential investors can bid for shares. The final price per share will be determined based on the demand generated during the subscription period.
4. Listing Platform: Greenchef Appliances has stated that its shares will be listed on NSE Emerge. NSE Emerge is a platform specifically designed for the listing and trading of securities of small and medium-sized enterprises (SMEs) in India.
This platform provides a conducive environment for SMEs to raise capital and provides investors with opportunities to invest in emerging companies.
By going public through the IPO, Greenchef Appliances aims to raise funds from the market to support its growth plans, expand its operations, and strengthen its market presence.
This offering allows individual and institutional investors to participate in the company’s growth potential and become shareholders of Greenchef Appliances.
Here are further details related to the IPO of Greenchef Appliances:
1. Number of Shares: Greenchef Appliances plans to issue 61.63 lakh (6.16 million) fresh shares as part of the IPO. These new shares represent additional equity that the company will offer to the public.
2. Fundraising Target: The company aims to raise approximately Rs 53.62 crore through the IPO, considering the upper price band. This amount represents the capital that Greenchef Appliances intends to generate by selling its shares to investors during the IPO.
3. Utilization of Funds: The funds raised from the IPO will be allocated for various purposes, including:
a. Setting up Additional Plant and Machinery: A portion of the funds will be utilized to establish new plant facilities and acquire additional machinery. This investment aims to expand the company’s manufacturing capabilities and support its growth plans.
b. Construction of Factory Building: Another portion of the funds will be allocated towards the construction of a new factory building. This infrastructure development will enable Greenchef Appliances to enhance its production capacity and improve operational efficiency.
c. Working Capital Requirement: Some of the funds will be used to meet the working capital requirements of the company. Working capital includes funds needed for day-to-day operations, such as purchasing raw materials, managing inventory, and covering operational expenses.
d. General Corporate Purpose: The remaining funds will be utilized for general corporate purposes. This may include activities such as marketing initiatives, research and development, technology upgrades, and other strategic investments to strengthen the company’s overall operations.
By raising capital through the IPO, Greenchef Appliances aims to deploy these funds strategically to support its expansion plans, improve production capabilities, and meet the increasing demand for its kitchen appliances.
About the Company
1. Business Overview: GreenChef Appliances is a prominent kitchen solutions provider specializing in the manufacturing and marketing of kitchen appliances.
The company offers a wide range of products across 20 categories, catering to various kitchen needs. Their product portfolio includes items such as cooktops, chimneys, hobs, water purifiers, mixers, juicers, and more.
2. Manufacturing Units: Greenchef Appliances operates five manufacturing units, with four located in Karnataka and one in Himachal Pradesh.
These strategically located units enable the company to efficiently produce and distribute its kitchen appliances to customers across different regions.
3. Financial Performance: According to the company’s statement, during the first month of the financial year 2022-23, Greenchef Appliances reported revenue from operations amounting to Rs 254.82 crore.
Additionally, the net profit for the same period was recorded at Rs 10.21 crore. These figures reflect the company’s financial performance and provide insights into its revenue generation and profitability.
4. Book Running Lead Manager: Ham Securities has been appointed as the book running lead manager for the IPO of Greenchef Appliances.
The book running lead manager plays a crucial role in managing the IPO process, including coordinating with various stakeholders, determining the IPO price band, and overseeing the allocation of shares to investors.
Through its strong manufacturing capabilities, diverse product range, and favorable financial performance, Greenchef Appliances aims to capitalize on the market demand for kitchen appliances.
The IPO will provide an opportunity for investors to participate in the company’s growth and potentially benefit from its expansion plans and increasing market presence.
