Gemini Edibles & Fats India Ltd – About the Company
Gemini Edibles & Fats India Limited is a Hyderabad-based company involved in the manufacturing, distribution and branding of edible oils and speciality fats in India. The company is the market leader in sunflower oil, and markets its sunflower oil under the brand name of "Freedom". In three states, Telangana, Andhra Pradesh, and Odisha, the company enjoys the market leadership in sunflower oil, while having the third largest market share in the state of Karnataka.
Under the “Freedom” brand name, company sells the premium oils like sunflower oil, rice bran oil, mustard oil and groundnut oil. While marketing the palm oils under the brand name of ‘First Klass’. Though the company is a regional player, as of Fiscal 2021, on a pan-India basis, the company still ranked amongst the top two companies by market share in the branded sunflower oil category.
Gemini Edibles & Fats India Limited manufactures and sells a range of edible oils and fats for various range of customers under three main verticals, i.e., branded retail consumer, industrial consumer and bulk merchandising. The operations of the company are integrated throughout the edible oils and fats value chain, from importing the crude edible oil to the processing, packaging and distribution of its products to wholesalers and retailers.
Gemini Edibles & Fats India Ltd IPO Objectives
As the IPO is an offer for sale, the company will not receive funding from the sale of equities. As per the DRHP, the offer for the sale of equity shares in this IPO consists Rs 1,250 crore by Black River Food Pte Ltd, Rs 750 crore by Golden Agri International Enterprises, Rs 250 crore by Investment and Commercial Pte Ltd., Rs 225 crore by Alka Chowdhry and Rs 25 crore by Pradeep Chowdhry.
Also Read: What is IPO: How it Works & Else Everything You Need To know
However, the main objective of launching the Gemini Edibles & Fats India Ltd IPO is a list of the equity shares on the stock exchanges for better brand visibility among the customers and investors to improve the brand image providing liquidity to the shareholders.
Gemini Edibles & Fats India Ltd IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | [●] Equity shares (aggregating up to ₹2,500 Cr) |
| Offer for Sale | [●] Equity shares (aggregating up to ₹2,500 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not Available |
| NII (HNI) Shares Offered | Not Available |
| Retail Shares Offered | Not Available |
Gemini Edibles & Fats India Ltd IPO Issue Price & Size
The Gemini Edibles & Fats India Ltd IPO Issue Price will be in the range of Rs XXXX to Rs XXXX. Anyone looking to invest in Gemini Edibles & Fats India Ltd through IPO can bid within these price ranges. The Gemini Edibles & Fats India Ltd IPO issue Size would be aroundRs 2500 crore and will be purely an offer for sale by existing shareholders.
Gemini Edibles & Fats India Ltd IPO Launch Date
Gemini Edibles & Fats India Ltd IPO launch date will be announced by the company very soon. However, no such official announcement came out for the IPO launch. Gemini Edibles & Fats India Ltd IPO will be open for bidding between (date range) and anyone looking to invest in the Gemini Edibles & Fats India Ltd IPO can apply for the IPO during these dates.
Gemini Edibles & Fats India Ltd Financial Statements:
| Particulars in (Rs Cr.) | FY21 | FY20 | FY19 | CAGR |
| Revenue from Operations | 7765.96 | 6500.25 | 5422.75 | 19.67% |
| Other Income | 97.14 | 71.06 | 111.22 | |
| Operating Expenses | 6623.99 | 5872.87 | 4972.70 | |
| Employee Expense | 201.98 | 77.16 | 43.07 | |
| Other expenses | 208.83 | 289.73 | 203.11 | |
| EBITDA | 828.30 | 331.55 | 315.09 | 62.13% |
| EBITDA Margin% | 10.67 | 5.10 | 5.81 | |
| Depreciation | 32.95 | 26.98 | 17.81 | |
| Interest | 30.25 | 60.9 | 127.75 | |
| Profit Before Tax | 765.10 | 243.67 | 169.53 | |
| Total Tax | 194.33 | 57.81 | 60.19 | |
| Profit After Tax (PAT) | 570.77 | 185.86 | 109.34 | 128.48% |
| PAT Margin% | 7.35 | 2.86 | 2.02 | |
| EPS Rs (Basic and diluted) | 55.45 | 18.07 | 11.78 |
Source: DRHP
Gemini Edibles & Fats India Ltd Financial Performance
The revenue of Gemini Edibles & Fats Indiahas increased from Rs 5422.75 to Rs 5422.75 from FY19 to FY21 registering a CAGR growth of 19.67%. The operating income of the company for the same period touched Rs 828.30 from Rs 315.09 crore with the CAGR growth of 62.13% during FY19 to FY21.
The Net Profit of the company stood at Rs 570.77 crore from Rs 109.34 crore from FY19 to FY21. And owing to paying of the debt and reducing the interest cost, the PAT margins of the company have improved from 2% in FY19 to 7.35% in FY21.
Gemini Edibles & Fats India Ltd IPO Promoters & Shareholding of the Company
Alka Chowdhry, Pradeep Chowdhry and Golden Agri International Enterprises are the main promoters of the company. As per the DRHP, Golden Agri International Enterprises holds 56.27% stake in GEFIL; Alka Chowdhry 11.56%; Black RiverFood 25%; Investment and Commercial Enterprises 6.6%; and Pradeep Chowdhry holds 0.57% stake in the company.
| S.NO. | Name of the Shareholder (Promoters) | No. of Shares | % of pre-Offer shareholding |
| 1 | GAIE | 57,886,130 | 56.27 |
| 2 | AlkaChowdhry | 11,886,790 | 11.56 |
| 3 | Pradeep Chowdhry | 590,920 | 0.57 |
| 4 | AkshayChowdhry | 10 | Negligible |
| Total | 70,363,850 | 68.40 |
| S. No. | Name of Selling Shareholder | Number of Equity Shares | Percentage of the pre-Offer Equity Share capital (%) |
|
| 1 | Pradeep Chowdhry | 590920.00 | 0.57 | |
| 2 | AlkaChowdhry | 11,886,790 | 11.56 | |
| 3 | GAIE | 57,886,130 | 56.27 | |
| 4 | Black River | 25,718,770 | 25 | |
| 5 | ICE | 6,792,450 | 6.6 | |
| 6 | Total | 102,875,060 | 100 |
Why Invest in Gemini Edibles & Fats India Ltd IPO?
Investing in a company through IPO means you are going to spend your money in the new company that is not trading on stock on the exchange. There are various points that should be considered while investing in the IPO to make sure you are investing in the right company.
Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe
Every company have strength and weakness or you can say risk while operating the business. Here we have tried to cover and analyse the strengths and the risks with the company. You can compare these things and decide to invest in the IPO.
Also Read: Types of Risks Associated with Investing in the Stock Market
Strengths:
- Gemini Edibles & Fats India Ltd has a significant market share selling sunflower oil, mustard oil and groundnut oil. The company is the market leader in the sunflower oil category in Telangana, Andhra Pradesh, and Odisha, while holds the third largest market share in Karnataka state.
- Sunflower Oil is a reputable brand for companies in both retail consumer edible oil and the industrial consumer speciality specialities sector. Gemini is also one of the top two companies by market share in the branded sunflower oil category on a pan-India basis as of Fiscal 2021.
- It is operating with ultra-modern manufacturing units with the significant capacity to produce, refine and package the edible oil at various locations.
- It has a network of over 1,100 distributors and traders and sells its oil products in approximately 640 towns in Andhra Pradesh, Karnataka, Odisha and Telangana.
- The company has been operating with strong financial performance in the past years. From FY19 to FY21, the revenue of the company grew at a CAGR of 19.7%, while the operating profit grew at a CAGR of 62%. The net profit of the company registered a CAGR growth of 128% for the same period that is thanks to a more than threefold increase in net profit margins.
Risks:
- The uninterrupted supply of raw materials is one of the major concerning factors for Gemini Edibles & Fats India Ltd. Any kind of unexpected situation interrupting the raw material supply can affect the production and sale of the company.
- The company have a market share mainly in south Indian regions, the inability to expand its operations in other part of the country can also affect generating more revenue in the near future.
- Fluctuating or unstable prices of crude prices, can also cause disruptions in supply of the raw materials or can increase the cost of transportation. And various other risks of transportation in raw materials like spillage, mishandling or damage in processing can affect the cash flow.
- There is huge competition in the market, with various other leading players producing and selling similar products with an established brand name can dent the market share of the company.
- Apart from that, the Edible oil industry is also highly regulated by the central government's respective authorities. Any kind of unfavourable regulatory frameworks like license renewal, registrations and FSSAI-related approvals can also affect the operations of the company.
- At the financial end, the cash flow of the company can be also affected if its future growth plan and business strategies do not work as per the plans due to inconsistency in the management.
Also Read: What are the Risk Factors Involved in Applying for an IPO
Gemini Edibles & Fats India Ltd IPO Grey Market Premium
The Gemini Edibles & Fats India Ltd IPO share price has not been declared yet, hence the Grey Market Premium (GMP) of the IPO would be not possible unless the company officially declare the launch price. However, GMP is the premium price expected to be listed on the stock exchange. And the GMP can be high or low depending on the demand and supply of the share in the pre-market or you can say share price unofficially trading in the grey market before the listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable
Gemini Edibles & Fats India Ltd IPO Review & Analysis
There is no doubt company has the advantage of market leadership in the premium edible oil segment, but only in a few the south Indian states. In another part of the country, other leading players are market leader, hence, expanding its operations and ensuring more revenue growth from the new markets would be a challenging task for the company.
However, with the increasing demand of premium edible oil in existing states or other nearby states and the scope for exporting and distributing the well-known brands in new markets can help the company generate more revenue and earnings.
Launching more cost-effective and healthy edible oils and introducing other similar products or food-related products can add to the top-line growth of the company. More revenue means higher profit that will increase the wealth of the investors by increasing the return on equity and earnings per share.
On the valuation front, IPO evaluation and comparison of the share price of Gemini Edibles & Fats India Ltd with other peer group companies is not possible as the IPO price has not been declared yet. However, if the Gemini Edibles & Fats India Ltd IPO is offered at a discounted price or available at a cheaper valuation compared to other listed companies in the same industry, you can consider buying the stock with the listing gain point of view or keep it for the long-term.
Also Read: What to Know Before Investing in Stocks: 10 Things to Consider
However, if the Gemini Edibles & Fats India Ltd IPO is offered at a very high premium price, compared to its peer group, you can either avoid applying or wait for the listing to come down the price and then buy with the long-term investment point of view.
How to Apply for Gemini Edibles & Fats India Ltd IPO?
If you have a trading account and demat account with any broker you can apply for this IPO. If you don’t have these accounts, just open the trading and demat account with Moneysukh and you can easily apply for this IPO with the simple steps given below.
Steps to Apply for Gemini Edibles & Fats India Ltd IPO:
Step 1: WhenGemini Edibles & Fats India Ltd IPO date opens you can apply.
Step 2:Just browse trade.moneysukh.com and log in with your User ID & password.
Step 3:Now check the IPO section and choose the Gemini Edibles & Fats India Ltd IPO.
Step 4:Here you need to fill in the details such as price, quantity, and so on.
Note: While applying in any IPO, always bid at the cutoff price before submitting your application.
Step 5:Now you can submit an IPO application successfullyafter making payment.
How to Check Gemini Edibles & Fats India Ltd IPO Allotment Status?
Once the Gemini Edibles & Fats India Ltd IPObidding dates closed, after a few days the allotment process will be performed by the company. If an IPO is oversubscribed there is less chance of getting the allotment in the IPO and if you don't get any allotment, your application money will be refunded into your bank account or the fund will be unblocked if applied through UPI.
Also Read: How to Increase the Chances of IPO Allotment
However, if you are lucky and get the allotment of Gemini Edibles & Fats India Ltd IPO, then the amount will be deducted from your bank account and shares will be transferred into your demat account. Meanwhile, you can check the Gemini Edibles & Fats India Ltd IPO Allotment Status through various websites like NSE, BSE and Moneysukh.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
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