A Closer Look at the Company’s Fresh Equity Offering
Introduction
Sonalis Consumer Products, a leading distributor of nutritional bars and healthy snacks, is set to launch its initial public offering (IPO) for subscription from June 7 to June 9. This article provides essential information about the upcoming issue, shedding light on the company’s profile, the booming snacks industry in India, financial performance, and key dates to remember.
Company Overview
Sonalis Consumer Products specializes in the distribution of nutritional bars and healthy snacks. Moreover, the company engages in private labeling and contract manufacturing to offer a diverse range of products. While their Nutri-bars and laddu (Indian Snacks) primarily target the youth and adults, they also cater to various consumer segments.
Industry Overview
With the snacks industry witnessing remarkable growth in India, Sonalis Consumer Products operates in a promising sector. The snacks market size and snack revenue are projected to grow by 25% annually. It’s worth noting that the snacks industry falls under the Fast-moving Consumer Goods (FMCG) sector, the fourth-largest sector in India. Household and personal care products alone account for 50% of FMCG sales in the country.
Issue Size
The IPO comprises a fresh equity issue of up to 9.44 lakh equity shares, with no offer for sale (OFS) included in the offering. Sonalis Consumer Products aims to raise approximately Rs 2.83 crore by offering shares at a price band of Rs 30 per equity share, having a face value of Rs 10.
Financial Performance
As of December 2022, Sonalis Consumer Products achieved revenues of Rs 4 crore, accompanied by a net profit of Rs 68.4 lakh for the nine-month period.
Objects of the Offer
The net proceeds from the public offer will serve various purposes, including working capital requirements, general corporate needs, and covering other issue expenses.
Book Running Lead Managers and Registrar
Expert Global Consultants has been appointed as the book running lead manager for the IPO, while Purva Sharegistry will serve as the registrar.
Listing of Shares
Following the IPO, Sonalis Consumer Products’ shares will be listed on the BSE SME platform, providing investors an opportunity to participate in the company’s growth prospects.
Important Dates
Investors should mark their calendars for key dates related to the Sonalis Consumer Products IPO. The subscription period commences on June 7 and concludes on June 9. The final allotment of shares will take place on June 14, with the anticipated listing date set for June 19.
Also Read: IKIO Lighting IPO Oversubscribed 1.55x at Rs 606.5 Cr on Day 1
Risk Factors
While Sonalis Consumer Products enjoys a strong market presence, certain risk factors should be considered. The company heavily relies on key managerial personnel with technical expertise, and any loss of such talent could have adverse effects on its business. Additionally, Sonalis faces intense competition within its industry, which may limit its growth potential, as well as potential challenges due to a limited number of raw material suppliers.
Conclusion
The forthcoming IPO of Sonalis Consumer Products presents a compelling investment opportunity in the rapidly expanding Indian snacks industry. As investors gear up for the subscription period starting on June 7, they can assess the company’s financial performance, objectives of the offer, and associated risk factors. With its shares set to be listed on the BSE SME platform, Sonalis Consumer Products is poised to capture growth and deliver value to its stakeholders.
About Sonalis Consumer Products:
Sonalis Consumer Products Limited was founded in 2022 with a focus on distributing nutritious bars and healthy snacks. The company acquired the business line and distribution network of Appetite Food, a well-established player in the market for approximately three years. This acquisition presents a valuable opportunity for Sonalis Consumer Products Limited to strengthen its presence and expand its operations in the region. Sonalis Consumer Products Limited offers a diverse range of nutritious snacks and food items, including Granola Bars, Healthy Laddu, Puffs, Cheeseling, Chakli, Diet Bhel, and Sev.
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