Khyati Global Ventures Ltd IPO: Key Details, Subscription Status, and Financial Utilization
Khyati Global Ventures Ltd, an exporter and repacker of various FMCG products, is set to launch its Initial Public Offering (IPO) from October 4, 2024, to October 8, 2024. The company, incorporated in 1993, deals in a wide range of products including pharmaceuticals, festive and pooja handicrafts, non-food FMCG, food items, and household products.
IPO Details
The IPO consists of an initial public offer of up to 18,50,000 equity shares of Rs. 10 each. This includes a fresh issue of up to 10,50,000 equity shares and an offer for sale of up to 8,00,000 equity shares by the promoter selling shareholders, Ramesh Rughani and Chandika Rughani. The issue price is fixed at Rs. 99 per share, with a minimum application lot size of 1,200 shares, amounting to a minimum investment of Rs. 118,800.
The total issue size is approximately Rs. 18.30 crores, with the fresh issue component raising Rs. 10.38 crores and the offer for sale component raising Rs. 7.92 crores. The proceeds from the fresh issue will be utilized primarily for funding working capital requirements (71.78%), issue-related expenses (11.28%), and general corporate purposes (16.94%).
Subscription and Allotment Schedule
The IPO will be open for subscription from October 4, 2024, to October 8, 2024. The UPI mandate deadline is also set for October 8, 2024, by 5 PM. The allotment of shares is expected to be finalized by October 9, 2024, with refunds initiated on October 10, 2024, and shares credited to the demat accounts on the same day. The listing of the shares on the BSE SME platform is scheduled for October 11, 2024.
Business Overview
Khyati Global Ventures Limited operates as an exporter and repacker of FMCG products, catering to wholesalers, supermarket importers, and retailers abroad. The company's product portfolio includes well-known brands such as Everest, Parle G, MDH, Fortune, Aashirvaad, and Haldiram. It maintains a 20,000 sq ft warehouse for efficient product handling and focuses on competitive sourcing through a flexible procurement system.
Strengths and Risks
The company's strengths include its established infrastructure, broad portfolio of FMCG and pharmaceutical products, and a focus on exports. However, it also faces several risks such as conflicts of interest with promoter group entities, mismanagement of trade receivables and inventory, competitive pressures in the FMCG industry, and the need for timely renewal of statutory approvals and licenses.
The FMCG industry, in which Khyati Global Ventures operates, is highly competitive and subject to various market dynamics. For instance, companies in this sector often face challenges related to supply chain management and maintaining product quality.
Investors interested in the IPO can check the subscription status and other details on the registrar's website and the exchange website. The IPO is part of the company's strategy to enhance its financial position and expand its operations.
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