Empyrean Cashews IPO Review [SME IPO]

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Empyrean Cashews IPO
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Empyrean Cashews, as a company, is engaged in the business activity of the production and selling of their cashews under the brand name Krishival Cashews. The company was incorporated in 2014, where earlier it started as the company engaged in processing raw cashew nuts into different kinds of flavoured and roasted cashews. The company has a substantial market share in the domestic market and holds a vast distribution network of more than thirty associated distributors across various states in India. In this article, we take a closer look at the Empyrean Cashews IPO Review and its possible future prospects.

Empyrean Cashews currently holds a diversified product portfolio in the cashew segment, which includes different flavours of roasted and ordinary cashews such as salted, assorted, chilli and pepper based. These cashews are offered in different grades along with different packaging formats.

Empyrean Cashews product is a certified product available on E-Commerce companies such as Messho, Amazon, Flipkart, Swiggymart and India Mart. Empyrean Cashews Limited has its processing manufacturing facility along with a packaging unit in the village area of Halkarni, Shinoli, Kolhapur in Maharashtra. The company also has one subsidiary under its operation; the subsidiary is Siddhivinayak Cashew Industries Private Limited.

Some of the Competitive Strengths of the company are as follows:

  • The company’s products are Quality Assured products along with quality assurance and industrial production standard certification.
  • The company has been highly benefitted by its strategically located manufacturing and packaging facilities. It includes all the new machinery and the infrastructure required for the integrated processing and packaging operation of the company.
  • Empyrean Cashews is a highly customer-oriented company that also produces its products for bulk orders per customer modification. It has a good track record of customer satisfaction and a high customer retention rate.
  • The company has a widespread distribution network with a strong and growing market reach and presence on Online and various retail channels and outlets for timely delivery.
  • Empyrean Cashews has an experienced and highly professional senior management team. 

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans is availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  
  • The company also intends to fund various investments and strategic acquisitions.

EMPYREAN CASHEWS IPO DETAILS:

The company got approval from SEBI to float their IPO of the fixed-price type under the SME category. The company fixed their price band of Rs.37 per equity share for the IPO. The company’s IPO is a fresh Issue of 5,247,000 equity Shares which aggregates to Rs. 19.41 Crores. The company’s stock will be listed under the SME Category platform of the NSE.

The company further stated that the funds acquired from the IPO offer would be parted as finance required to fund the company’s working capital to be around Rs. 15.00 crores and the requirement for the general corporate purpose to be around Rs. 3.74 crores. The IPO issue of the company constitutes around 26.50% of the total post-issue paid-up capital of the company.

The company also stated that it had raised its entire equity capital at par valuations. The average cost at which the company’s promoters have bought their stake is Rs. 10 per equity share. Post-IPO, the company’s total current paid-up equity capital will be Rs. 14.55 crores, which will stand to be enhanced to Rs. 19.80 crores. The company has been trailing currently; the market cap will be around Rs as per the valuations. 73.24 crores. Check Day by Day IPO Subscription Details (Live Status)

IPO Opening DateMarch 21, 2022
IPO Closing DateMarch 23, 2022
Issue TypeFixed Price Issue IPO
Face ValueRs. 10 per equity share
IPO PriceRs. 37 per equity share
Market LotOne lot of 3000 equity shares
Minimum Order Quantity3000 equity shares
Minimum Order PriceRs. 111,000
Maximum Order Quantity3000 equity shares
Maximum Order PriceRs. 111,000
Listing AtNSE – SME platform
Issue Size5,247,000 equity Shares of the company that aggregates to Rs. 19.41 Crores
Fresh Issue5,247,000 equity Shares of the company that aggregates to Rs. 19.41 Crores
Retail Shares Offered50% of the net offer
NII (HNI) Shares Offered50% of the net offer
Basis of Allotment DateMarch 28, 2022
Initiation of RefundsMarch 30, 2022
The Credit of Shares to Demat AccountMarch 30, 2022
IPO Listing DateMarch 31, 2022

FINANCIAL TRENDS OF EMPYREAN CASHEWS IPO:

PARAMETERMARCH 21MARCH 20
   Earnings Per Share (Rs)0.460.66-30.19
   CEPS (Rs)1.611.89-14.78
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)13.3613.320.29
   Tax Rate (%)34.7525.9034.17
   Core EBITDA Margin (%)11.388.2438.13
   EBIT Margin (%)7.005.2932.20
   Pre – Tax Margin (%)3.642.9423.86
   PAT Margin (%)2.372.189.07
   Cash Profit Margin (%)8.356.2733.13
   ROA (%)1.952.93-33.32
   ROE (%)3.445.22-34.18
   ROCE (%)6.278.32-24.62
   Asset Turnover (x)0.821.35-38.86
   Sales/Fixed Asset x)1.332.13-37.65
   Working Capital/Sales (x)1.903.10-38.71
   Fixed Capital/Sales (x)0.750.4760.39
   Receivable days20.2742.07-51.81
   Inventory Days109.0562.2975.06
   Payable days34.2047.56-28.08
   EV/Net Sales (x)0.950.5667.68
   EV/Core EBITDA (x)7.296.0121.35
   EV/EBIT (x)13.5210.6626.84
   EV/CE (x)0.740.77-3.55
   Net Sales Growth (%)-35.99-12.06-198.44
   Core EBITDA Growth (%)-11.559.45-222.24
   EBIT Growth (%)-15.3821.06-173.05
   PAT Growth (%)-30.1947.19-163.97
   EPS Growth (%)-30.1947.19-163.97
   Total Debt/Equity (x)0.690.5525.32
   Current Ratio (x)3.187.29-56.31
   Quick Ratio (x)1.923.63-47.25
   Interest Cover (x)2.082.25-7.28

Valuations Of The Empyrean Cashews Company:

  • Basis EPS of the company is at 0.46
  • The NAV is 13.36 
  • Earnings Per Share / EPS of the company: Rs. 0.46
  • Pre-IPO Price/Earnings / PE ratio of the company: 80.43
  • Return on Net Worth, RONW: 3.44%
  • Net Asset Value/ NAV: Rs. 13.36 per equity share
ParticularsFor the year ending with the amount in Rs. Lakhs
 31-Oct-2131-Mar-2131-Mar-2031-Mar-19
Total Assets2,191.202,156.191,641.481,610.58
Total Revenue2,722.712,858.084,438.695,047.27
Profit After Tax166.6966.7495.6064.95

COMPANY PROMOTERS

The promoters of the company are as follows:

  • Aparna Morale Bangar
  • Nana Prakash Mhaske
  • Anant Pandurang Kulkarni 
Pre – Issue Share Holding56.99%
Post Issue Share Holding41.88%

Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.

COMPANY CONTACT INFORMATION:

Empyrean Cashews Limited
1309, Lodha Supremus Powai,
Saki Vihar Road,
opposite MTNL Office, Mumbai – 400072
Phone: +918779558264
Email: cs@krishival.com
Website: https://www.krishival.com/

EMPYREAN CASHEWS IPO REGISTRAR:

Purva Sharegistry India Pvt Ltd
Phone: +91-022-23018261/ 23016761
Email: support@purvashare.com
Website: http://www.purvashare.com

EMPYREAN CASHEWS IPO LEAD MANAGER(S):

Systematix Corporate Services Limited

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