Gemini Edibles IPO

Gemini Edibles & Fats India Limited is based in Hyderabad, India, and they are among of India’s top and fastest growing firms in edible oils and fats. Gemini Edibles IPO will hit the primary market in October 2021.

About the company

Gemini Edibles operates in India in the production, distributor and branding of speciality oils and fats.

With their brand ‘Freedom’ in the states of Telangana, Andhra Pradesh and Odisha, they are market leaders in the segment of sunflower oil and have the third biggest portion in Karnatak’s market.

Although they are a regional business, as of fiscal 2021, they were among the two leading firms in the pan-India category of brand sunflower oil.

Their activities are integrated across the whole value chain of edible oils and fats, from importation of crude edible oil to the refining, packaging and delivery of their items.

Their collection of edible oils and fats is marketed under three verticals to clients: branded retail, commercial and bulk merchandising.

Brands

They are producing and marketing under their own brands of oils including sunflower oil, rice bran oil, mustard oil, groundnut oil, palms and palmeal oil.

The ‘Freedom’ brand sells premium oils such as sunflower, rice bran, mustard and ground nut whereas the ‘First Klass’ brand offers palm oil.

The goods are sold vertically via a large network of retail dealers and wholesalers. In the locations where they operate, they also offer their products to regional and national grocery chains and e-commerce firms.

The ‘Freedom’ brand is labelled as ‘Freedom to Eat. Freedom to Enjoy.’

Manufacturing Facilities

They have three port factories in East India, two in Kakinada and one in Krishnapatnam. They are well situated throughout the wider geographic arc of India, Odisha and Chhattisgarh, covering all of Southern India.

They have expanded their refining ability from 800 MT per day to 2615 MT per day as of June 30th 2021 since they opened their first refinery in 2010.

In the previous ten years, they have upgraded the processing and packaging infrastructure of Krishnapatnam and Kakinada Units to stay up with technical advances and satisfy their rising market demand.

Gemini Edibles IPO

Gemini Edibles & Fats India Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 2500 Crore on 07 August 2021.

The Offer includes no fresh equity shares and an offer for sell(OFS) of up to 2500 crores value equity shares by the promoters.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Basic and Diluted Earnings Per Share

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the Issue

Few of the basic parameter values on which the offer price is determined are:

1. Renowned brands in the edible oil industry.
2. One of the major specialised fats and oils producers.
3. Modern industrial facilities with excellent location.
4. Extensive sales and distribution network well established.
5. Distribution capability facilitated by technology.
6. Their top management and varied board are experienced and professional.
7. They benefit from our shareholders’ knowledge and skills.
8. In all company processes, They use an efficient and integrated OS with a focus on risk control.
9. Their financial condition is good.

Gemini Edibles IPO Peer Comparison

Gemini Edibles IPO Details

Gemini Edibles IPO Tentative Date

The Gemini Edibles IPO opening date is October 2021, and the closing date is October 2021. The issue may list in October 2021.

Basis of Allotment

Gemini Edibles IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Gemini Edibles IPO.

Gemini Edibles IPO GMP

Gemini Edibles IPO Grey Market Premium is 0.

Gemini Edibles IPO Review

Gemini Edibles IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of this IPO is good or bad.

Gemini Edibles IPO Risk

• Perhaps their company strategies cannot be implemented or their growth sustained and managed.
• As their refineries are centred in Andhra Pradesh, they may be substantially and negatively affected by bad or unfavourable occurrences impacting Andhra Pradesh, Odisha and South India.
• There is no doubt about the ongoing impacts of the COVID-19 epidemic on their business.
• Risks in production and non-compliance with regulations may interfere with their operations.
• It may have a negative impact on their business if we fail to build or manage their increasing distribution network efficiently.
• If their inventory or working capital are not managed well, their performance might be severely affected.

Other Threats

• The edible oils & specialty fats sector in India is very competitive and their inability to compete successfully might have a detrimental effect on their business.
• The growing health, safety, environmental and regulatory requirements are subject to their activities.
• If we can maintain, defend and expand their brand image, their business & prospects may suffer severe effects.
• For the selling of some items they depend on a specific number of consumers.
• Their company and one of our Group companies have pending legal actions. In such legal processes any unfavourable outcome might harm their company.
• All damages suffered in their commercial activities cannot be covered by the insurance policy.

Gemini Edibles IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Gemini Edibles IPO Subscription Status

Promoters

• Pradeep Chowdhry
• Alka Chowdhry
• Golden Agri International Enterprises Pte. Ltd.
• GAI

Promoters Holding