Italian Edibles Limited IPO Message Board (Page 5)

Skipping this ipo. Not interested. LM also doesnot have good track record

14 year old Indore based confectionary manufacturing company.
LM / MM with patchy track record.
While company is raising funds to pay off debt, it has given loan of Rs 2.14 cr to related parties and Rs 75 lacs to others. Whether company is earning interest on these loans and what is their use in business is not known
As on 31-Aug-23 receivables were Rs 9.19 cr of which Rs 82.49 lacs were doubtfull (provision value not known) and Rs 2.2 cr is due for more than 6 months.
Out of inventory of Rs 28.67 cr on 31-Aug-23, Rs 15.9 cr is packing material inventory while Rs 10.16 cr is raw material inventory. Packing material inventory appears to be high and whether it includes old unusable inventory is not known.
Based on working capital projections, company expects to achieve revenue of Rs 88 cr approx., in FY24.
Capacity utilisation was 60% for 5MFY24 and 54% for 22-23. Company intends to use part of the IPO proceeds to consolidate its existing 2 factories in 1 Unit and expand capacity from 6250 MTPA to 7690 MTPA. Logic of capacity expansion despite current under utilisation is not explained.
Drop in 22-23 revenue was due to government regulations on single use plastic after which company is still in recovery mode.
Company has 227 employees as o 31-Aug-23. It has deposited PF for 212 employees for Dec-23, 208 employees for Dec-21 and 344 employees for Dec-20.
Decent cash flow, PBT till 31-Aug-23 was Rs 8.7 cr while CFOB4T was Rs 10.22 cr
Debt proposed to be repaid is largely unsecured loans carrying interest of 15% to 16.5% except SCB loan which has interest rate of 9.25%. All prepayments carry prepayment penalty of 2%.
Term loans are from HDFC Bank / IndusInd Bank carrying interest rate of 9.2% to 9.75%. Unsecured loan from related party is interest free (Rs 1.44 cr on 31-Aug-23)
1 supplier has filed suit for non payment of dues worth Rs 36.15 lacs against company. There are 11 tax litigation matters aggregating Rs 80 lacs against the company.
Hands on promoters with 14 years industry experience whereas the rest of the Directors on Board seem to have limited industry experience.
Other expenses are largely power & fuel, legal expense, repair & maintenance and rent.
Net block of assets as on 31-Aug-23 is Rs 3.84 cr of which Rs 3.24 cr if plant & machinery while Rs 20 lacs is vehicles.
IPO related expenses, @ 3% of IPO size, are among the lowest seen in current IPO’s.

Hi,
How to find buyers for IPO applications?
I want to sell applications.

Patel saheb aap dhanya hai....
Aapki mahima aur Gyan aprampaar hai... Prabhu.

​@Anupam singh bhai apne ha ya na me jawab nahi diya...

Hi
In SHNI instead of applying 4000 shares at Rs. 272000/-. Can we apply say 8000 shares at Rs. 544000/- ? Does it increases the chances for allotment or is it just plain stupidity in SME IPO ! Please clarify

The increase in chances of allotment will be very minute if applied for 8000 shares instead of 4000 but yes, in SME IPOs more the number of lots, greater are allotment chances.

1. There are no SHNI or BHNI in SME IPO.
2. More number of lots in one application means more chances in SME IPO. But this is subject to the condition that - (A * B)/C > 0.5

Here, A = number of lots applied
B = number of applicants in that particular lot.
C = number of times HNI portion oversubscribed

Let's say HNI portion subscribed = 100 times = C
Therefore, for 20 lots, there should be at least 3 applications to be considered for lottery. If there are only 1 or 2 applications with 20 lots, they will not be considered for draw.

🔊GMP UPDATE SME IPO
Baweja 🎙️Studio: ₹2/=
Meghatherm Induction: ₹115/=
Harshdeep Hortico: ₹32/=
Mayank Cattle: ₹5/=
Gabriel Pet: 48/=
🇮🇹Italian Edibles: ₹21/=
Alpex Solar: ₹185/=
WTI Cabs: ₹90/=

GMP UPDATE SME IPO

Italian Edibles: 12/= ₹13/=

ओतो आज नानी याद दिला दी!
इटली🇮🇹 ननिहाल है क्या किसी का?

Can I apply in this? Any chance of discount on listing? IPO experts, plz reply.

Apply or not for listing gain?

Listing gains are falling already; so I assume, it will list on flat or little gains; but again its a risky bet in the end as issue looks overly priced

Any body finding actual (real) buyer of this share in GMP?

No buyer available with my share brokers, GMP rates shown on the websites is not correct.

Plz update if anybody has real buyers quote.

​@GrayIsTheNewBlack Bhai, how it will work, I mean how they Will community. Is that only verbal trust between broker and client ?

​@GrayIsTheNewBlack 
I have sold two lots now. I will apply and try to get 4-5 lots. Net position will be open lots 2-3.

This will hedge my position.

Looking at the balance sheet of the Company, IPO is so so. But current sme boom, we can ride and in my opinion, there is no harm if someone tries to get one allotment open.

This will subscribe around 150-200 times in hni.

Seems like a bogus company by a 3rd grade LM.. A clear avoid for me.

Mahesh bhai fir bhi logon ne kood kood ke apply kiya 😂😂

I didn't apply in this IPO because u and some other experts of this forum suggested so

Some game may be played in this one..not expecting discount listing.

Can anybody tell me how's the circuit filter applied in SME ipo?

SME circuit filters work a bit differently and at the discretion of the exchanges how they deem appropriate (to avoid stock manipulation) since an SME stock is only listed on one particular exchange and not listed like mainline.
So, circuit filter depends on the volatility of the stock. It is revised to 10% after a few days. If not too volatile, it changes to 20% and if the stock is too volatile, its back to 5%.

​@GMxtraP Thanks for the info..but is there any days fixed for change circuit filter 5% to 10% and same way 10% to 20% for low volatility stocks?

Introduction about the company given here says that its products are available all over India. But I never heard about its brand 'OfCour'. I would rather apply FF in Apeejay than allocating some funds to this and some to Apeejay.

Although subscription was good, as usual these days, but I avoided it.

With assets of 40 Cr and revenue of 80 Cr, showing profit 1%, its self explanatory!
Surprising..

Nothing much interesting in the company.
DD sir has given avoid
LM is very average.
Better to wait and watch till last minute nute subscription figures(that too only for listing gains and not for long term)

Revenue degrowth in FY ending in Mar 2023 is a bummer for me.
For such small sized consumer related company revenue degrowth is just not justified.
Will look further if any explanation is available for the same.

Also for some reason IPO is open for 4 working days.
@rohiitian , have you looked into this one ?

​@GrayIsTheNewBlack Have only skimmed the issue. I did also wonder the same - the reasons are explained fairly clearly in the RHP on pages 193-194; it had to do with sudden banning of single use plastic by the govt and therefore having to stop selling lollipops for some time and set up a new supply chain for the lollipop sticks

I will go through this issue early next week and share my thoughts

​@rohiitian Why this IPO open for 4 days

🚩Red Flags all over.
Suspicious boost of recent profits.
Never seen/heard of the confectionery items, means not a popular brand.
High asking price
Avoid rating by DD sir.

GMP if any, won't sustain into profits.
Avoiding it.

As predicted 🚩🚩🚩Dead on arrival 💀⚰️😐
May god give some strength to the alottees 🙏

On first glance seems like its growing, what are your thoughts?

First

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