Mangalam Global Enterprise Ltd. (MGEL) is all set to make its debut in the stock market with the issue size ₹21.57 Cr. MGEL primarily specializes in manufacturing refined castor oil (First Stage Grade – F.S.G.), Castor De-oiled cake, and High Protein Castor De-oiled cake for both domestic and international markets. The company has also diversified its operations to include the production of cotton bales (Lint Cotton) and Delineate Cotton Seeds. While the company previously engaged in trading activities, it now focuses solely on trading Castor Seeds and Raw Cotton. Cotton bale manufacturing commenced in 2018, and the company recently expanded its business by establishing a wholly-owned subsidiary in Singapore that specializes in wholesale trading.
MGEL has established a strong presence in both domestic and global markets, supplying products to various states such as Gujarat, Rajasthan, Delhi, Maharashtra, and West Bengal, as well as countries such as Thailand and Oman. Additionally, the company holds a 51% stake in Hindprakash Castor Derivatives Private Limited (HCDPL) and Farpoint Enterprise LLP (Farpoint), both of which are subsidiaries of MGEL.
Mangalam Global Enterprise Ltd. (MGEL) IPO Details
| IPO Date | Nov 15, 2019 to Nov 20, 2019 |
| Listing Date | Nov 27, 2019 |
| Face Value | ₹10 per share |
| Price | ₹51 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 4,230,000 shares(aggregating up to ₹21.57 Cr) |
| Fresh Issue | 4,230,000 shares(aggregating up to ₹21.57 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
Mangalam Global Enterprise Ltd. (MGEL) Tentative Details
| Event | Tentative Date |
| Opening Date | Nov 15, 2019 |
| Closing Date | Nov 20, 2019 |
| Basis of Allotment | Nov 25, 2019 |
| Initiation of Refunds | Nov 26, 2019 |
| Credit of Shares to Demat | Nov 27, 2019 |
| Listing Date | Nov 28, 2019 |
| UPI Mandate Confirmation Cut-Off Time | 5.00 PM on the issue closing day |
Company Overview
Mangalam Global Enterprise Ltd. (MGEL) is an Ahmedabad-based company that has a diversified business model, which includes the manufacturing of castor oil and cotton bales. The company was initially established as Hindprakash Colourchem Private Limited in 2010. Since then, MGEL has expanded its operations and has become a leading player in the castor oil industry. The company primarily specializes in the production of refined castor oil, Castor De-oiled cake, and High Protein Castor De-oiled cake for both domestic and international markets. Additionally, MGEL has diversified into the manufacturing of cotton bales and Delineate Cotton Seeds. The company has established a strong presence in both domestic and international markets and has recently expanded its business by establishing a wholly-owned subsidiary in Singapore, which focuses on wholesale trading.
Industry Overview
India is a significant producer of castor oil and cotton bales, and the Asia Pacific region is expected to contribute to 46.7% of the total castor oil production globally. Castor oil is mainly used in the production of lubricants, soaps, and cosmetics. The castor oil industry in India is growing due to the increasing demand for renewable and sustainable products. Similarly, cotton bales are used in the textile industry, and India is one of the leading cotton producers globally. The Indian government has introduced initiatives to support these industries, including subsidies and tax incentives for manufacturers. The growth in these industries is expected to continue, driven by the rising demand for their products both domestically and internationally.
Company Financials
| Particulars | For the year/period ended (in Rs. Lakhs) | |||
| 30-Jun-19 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 12,126.96 | 7,158.37 | 934.75 | 698.19 |
| Total Revenue | 14,649.93 | 38,995.21 | 2,689.83 | 268.71 |
| Profit After Tax | 99.60 | 244.95 | 25.89 | 9.41 |
Objects of the Issue
The objects of the Offer are:
1. Funding the working capital requirements of the Company;
2. General corporate purposes.
Strengths
- Diversified business model with expertise in the production.
- Strong presence in both domestic and international markets
- Focus on sustainable and renewable products.
Weakness
- Dependence on the agriculture sector for raw materials.
- Risk of potential regulatory or environmental issues.
Mangalam Global IPO Lead Manager(s)
- Pantomath Capital Advisors Pvt Ltd (Past IPO Performance)
Lead Manager Reports
IPO Lead Manager Performance Summary
IPO Lead Manager Performance Tracker
Company Contact Information
Mangalam Global Enterprise Limited
Mangalam Corporate House,
19 / B, Kalyan Society,
Near M G Int School, Mithakhali, Ahmedabad,
Phone: +91-9099978946
Email: info@groupmangalam.com
Website: http://www.groupmangalam.com
Mangalam Global IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: mangalam.ipo@linkintime.co.in
Website: https://linkintime.co.in/
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