Baba Food Processing IPO: Baba Food Processing India Limited IPO Detail

IPOs (Initial Public Offerings) have always been a point of intrigue in the financial market, offering investors a unique opportunity to become part of a company’s growth story. Baba Food Processing India Limited, a well-established agro-food manufacturing company, is all set to launch its IPO. In this blog, we will delve into the details of the Baba Food Processing IPO, its financial performance, and its objectives.

Also See: Baba Food Processing IPO GMP

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Baba Food Processing IPO Overview

Baba Food Processing IPO is a book-built issue with a total size of Rs 33.00 crores, exclusively in the form of fresh equity shares. The IPO subscription period is from November 3, 2023, to November 7, 2023, with the basis of allotment expected to be finalized on November 10, 2023. The stock is set to list on NSE SME on November 16, 2023, with a price band of ₹72 to ₹76 per share. The minimum lot size for an application is 1600 shares, and the minimum investment required by retail investors is ₹121,600. High Net Worth Individuals (HNIs) need to apply for a minimum of 2 lots (3,200 shares), totaling ₹243,200.

Here’s an overview of the key details:

Baba Food Processing IPO Details

AttributeInformation
IPO NameBaba Food Processing IPO
IPO DateNovember 3, 2023, to November 7, 2023
Basis of AllotmentNovember 10, 2023
Listing DateNovember 16, 2023
Face Value₹10 per share
Price Band₹72 to ₹76 per share
Lot Size1600 Shares
Total Issue Sizeaggregating up to ₹33.00 Cr
Issue TypeBook Built Issue IPO
Listing AtNSE SME
Shareholding pre-issue12,000,003
Market Maker portion217,600 shares

Also Read: Benefits of Investing in an IPO

Baba Food Processing IPO Lot Size

Investors can bid for a minimum of 1600 shares and in multiples thereof. Below is the minimum and maximum investment for both retail and HNI investors:

ApplicationLotsSharesAmount
Retail (Min)11600₹121,600
Retail (Max)11600₹121,600
HNI (Min)23,200₹243,200

Baba Food Processing India Limited’s Financial Performance

Baba Food Processing India Limited has showcased an impressive financial performance. Between the financial years ending in March 2023 and March 2022, the company’s revenue surged by 94.38%, while its profit after tax (PAT) saw a remarkable increase of 150.14%. This growth demonstrates the company’s potential for expansion and profit generation, making it an attractive prospect for potential investors.

Baba Food Processing IPO Objectives

The company has laid out its objectives for utilizing the net proceeds from the IPO:

  1. Investment in Subsidiary: Baba Food Processing intends to invest in its wholly-owned subsidiary, Panchakanya Foods Private Limited (PFPL), to establish a modern, automated roller flour mill and chakki whole wheat atta mill in Patna, Bihar, referred to as the “Project.”
  2. Machinery Purchase: Funding the purchase of machinery for manufacturing Chickpea Flour (Besan) and Roasted Gram Flour (Sattu) in its existing manufacturing unit in Ranchi.
  3. Working Capital: The funds will also be used for meeting the working capital requirements of the company.
  4. Debt Repayment: Prepayment or repayment of all or a portion of certain outstanding unsecured borrowings availed by the company.
  5. General Corporate Purposes: Any remaining proceeds will be utilized for general corporate purposes.

About Baba Food Processing India Limited

Baba Food Processing India Limited, established in April 2015, is an agro-food manufacturing company with a strong presence in branded consumer and bulk food markets. The company specializes in producing various wheat flour products, including Whole Wheat Atta (Wheat Flour), Refined Flour (Maida), Tandoori Atta, and Semolina flour (Sooji).

The company operates a manufacturing unit in Nagri, Ranchi, and has plans to set up another unit in Patna, Bihar. With more than 120 employees and annual sales of ₹1900 million, the company’s core strengths lie in its extensive distribution network, a wide range of high-quality products, robust client and supplier relationships, and a strong focus on quality assurance and control.

Baba Food Processing IPO Registrar

The registrar for Baba Food Processing IPO is Mas Services Limited, and you can contact them at (011) 2610 4142 or via email at [email protected]. You can also visit their website at maserv.com.

Baba Food Processing IPO Lead Manager(s)

Horizon Management Private Limited is the lead manager for Baba Food Processing IPO.

In conclusion, Baba Food Processing IPO presents an exciting opportunity for investors to participate in the growth of a company with a strong financial track record and a solid presence in the agro-food manufacturing sector. With a clear roadmap for utilizing the proceeds and a history of robust financial performance, this IPO is worth considering for potential investors looking to diversify their portfolios.

Baba Food Processing IPO Timeline 

Baba Food Processing IPO opens on November 3, 2023, and closes on November 7, 2023.

IPO Open DateFriday, November 3, 2023
IPO Close DateTuesday, November 7, 2023
Basis of AllotmentFriday, November 10, 2023
Initiation of RefundsMonday, November 13, 2023
Credit of Shares to DematWednesday, November 15, 2023
Listing DateThursday, November 16, 2023
Cut-off time for UPI mandate confirmation5 PM on November 7, 2023

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