Baba Food Processing IPO

Baba Food Processing Limited

₹1,15,200 /1600 sharesMinimum Investment

Baba Food Processing IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
NSE₹76.00₹76.00₹0.00 (0.00%)

Baba Food Processing IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
3 Nov ‘23 - 7 Nov ‘23₹1,15,2001,600₹72 - ₹76
Issue SizeIPO Doc
33.00Cr
RHP PDF

About Baba Food Processing

Baba Food Processing, established on April 22, 2015, produces a variety of wheat-based products, including high-fiber whole wheat atta, refined flour (maida), tandoori atta, and semolina flour (sooji). The company operates from its manufacturing facility in Ranchi, which comprises two distinct divisions: the high-fiber whole wheat atta division and the refined flour division. In the high-fiber whole wheat atta division, the company focuses on producing high-quality whole wheat atta (wheat flour). Meanwhile, the refined flour division specializes in producing refined flour (maida), tandoori atta, and semolina flour (sooji). Under the brand name 'Panchakanya,' Baba Food Processing also offers chickpea flour (besan) and roasted gram flour (sattu) to the market. However, these products are sourced from third-party manufacturers. As part of its plans, the company intends to acquire machinery for in-house production of chickpea flour (besan) and roasted gram flour (sattu) within its existing manufacturing unit. ;
Parent Organisation
Baba Food Processing Limited
Founded
2015
Managing Director
Mr. Yogesh Kumar Sahu

Strengths & Risks

  • Baba Food Processing operates in Jharkhand and distributes its products through supermarkets like 'Reliance SMART' and 'JIO Mart' to local customers.
  • They offer a diverse range of flour products, including Whole Wheat Atta (Wheat Flour), Refined Flour (Maida), Tandoori Atta, and Semolina flour (Sooji). This variety allows them to serve a wide customer base.
  • Their manufacturing facility is well-equipped with advanced Buhler's Swiss Technology machinery, including the PesaMill for stoneless high fiber atta and a Roller Flour Mill with a capacity of 200 tons per day.
  • Baba Food Processing plans to expand its operations in India by establishing a modern roller flour mill and chakki whole wheat atta mill in Patna.
  • This expansion aims to reach markets in Bihar, West Bengal, Andhra Pradesh, the North East Region, and Odisha. To facilitate this growth, they've created a wholly-owned subsidiary named Panchakanya Foods Private Limited.
  • Baba Food Processing has not secured the necessary approvals and permissions from relevant authorities for its proposed manufacturing units. Failing to obtain these approvals and permits could negatively impact the company's business operations, financial results, cash flows, and financial condition.
  • The company's experience is primarily limited to operating in Jharkhand, Odisha, and West Bengal. Additionally, the company has limited experience in manufacturing Chickpea Flour (Besan) and Roasted Gram Flour (Sattu). Expanding beyond these states and product lines could make it challenging to assess the company's past performance and future prospects in these new areas.
  • Baba Food Processing and its subsidiary have not yet placed orders for 100% of the required plant and machinery. Any delays in procurement or fluctuations in exchange rates may result in project delays and increased manufacturing unit costs.
  • Baba Food Processing lacks long-term agreements with raw material suppliers, which means that any increase in raw material costs or shortages could negatively impact its business operations and financial condition.
  • One of the company's objectives is to invest in its subsidiary, Panchakanya Foods Private Limited, to establish modern flour mills in Patna. This investment won't lead to tangible assets for the company.
  • A portion of the funds raised in this offering will be used to repay unsecured loans borrowed from its group company. As of August 31, 2023, the outstanding unsecured loans from the group company amount to Rs. 638.82 lakhs.
  • As of June 30, 2023, Baba Food Processing has taken unsecured loans totaling Rs. 759.12 lakhs from its group company, its promoter and managing director, and its non-executive director. These loans may be called in at any time.
  • As of June 30, 2023, the company's contingent liabilities and commitments amount to Rs. 105.25 lakhs.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular72 - 76₹2 Lakh
High Networth Individual72 - 76₹2 - 5 Lakh
For Baba Food Processing IPO, eligible investors can apply as Regular.
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