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Greenchef Appliances IPO entails to issue a total of 61,63,200 lakh shares which at the upper end of the price band of ₹87 per share aggregate to ₹53.62 crore. The shares will list on the NSE emerge Platform. Greenchef Appliances SME IPO is opening for subscription on 23rd June 2023. The company is engaged in the manufacture of kitchen appliances under the brand name of Greenchef. Its range of products include gas stoves, pressure cookers, mixer grinders, wet grinders, rice cookers, induction cooktop, and a whole range of non-stock cookware including pans, pots, and kettles.

About Greenchef Appliances Limited:

• Greenchef Appliances Limited is engaged in the business of manufacturing and marketing of wide range of kitchen appliances under the brand name of Greenchef.
• Its kitchen appliances include wide range of solutions comprising of Gas Stoves, Pressure Cookers, Mixer Grinders, Wet Grinders, Electric Rice Cooker, Induction Cooktops, Non-stick Cookwares like: Tawa, Fry Pan, Kadai, Biriyani Pot, Tadka Pan, Paniyarakkal, Appamchetty etc, Kettles, Hose Pipes, Gas Cylinder Trolley and Spin Mop.
• Further company is also engaged in marketing of appliances like: Chimney, Stainless Steel Utensils, Blenders, Vegetable Chopper, Silicon Gasket, Water Bottles, Fans, Iron etc.
• It also trades in other appliances including (i) Chimney, (ii) HOB Gas Stoves, (iii) Iron (i) Stainless steel utensils, (i) Blenders, (ii) Vegetable Chopper, (Iii) Water Bottles, (Viii) Silicon Gasket etc vide distributors and dealers across India.
• The company manufactures majority of core products like: railing pipe, mixing tube, brass burner, pan support etc required in Gas Stoves, weight valve and vent tube required in pressure cookers, mixi motor and jars required in Mixer Grinders etc.
• For certain product categories and sub-categories, it engages in sourcing from third party manufacturers both domestically and from outside India.
• As of December 31, 2022 its service team comprised of 130 service technicians across 13 states. It has also appointed 107 authorized service providers across 15 states. Its CRM software enables it to track customer requests and after sales support to ensure customer satisfaction.
• Greenchef Appliances Limited has three manufacturing facilities located at Bengaluru, Karnataka and one manufacturing facility located at Parwanoo, Himachal Pradesh. Parwanoo facility is focussed on manufacturing of Gas Stoves and hose pipes for which Company has also entered into marketing agreement with oil companies like: Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited. Under these agreements, they authorize Greenchef Appliances Limited to use their logo on the products like Gas Stove, Hose pipe, Trolley etc. manufactured as per their specifications. The said products are sold to distributors and they in turn sell to dealers that are mostly Authorised Gas Agencies of these oil companies.
• Its manufacturing facilities are well connected with five strategically located C&F agents in the state of Rajasthan Maharashtra, Uttar Pradesh, Gujarat and Bihar. Additionally as on December 31, 2022 we have around 450 distributors in 22 states and 3 union territories of India.
• Further it has approved vendors of various modern retail chains such as DMART, Reliance Retail Limited, StarBazaar for the sale of its products from several of their retail outlets in India. The products are also sold online through e-commerce platforms such as Flipkart India Private Limited, Jiomart, Bigbasket and Amazon Seller Services Private Limited.
• Greenchef Appliances Limited was founded by Sukhlal Jain, Praveen Kumar Sukhlal Jain and Vikas Kumar Sukhlal Jain who have experience of around 51 years, 20 years and 22 years in the kitchen appliances industry.

Greenchef Appliances IPO: Financials

Anchor Investors

Greenchef Appliances IPO: Salient Points

• Promoters holding is 100% at present and shall get diluted to 73.52%
• Top 10 customers accounted, cumulatively, for 36.24%, 26.56%, 28.91% and 32.24% of our revenue from operations for the nine months period ended on December 31, 2022 and in Fiscals 2022, 2021 and 2020 respectively.
• Extensive offline sales channel comprised of around 450 distributors with presence in 22 states and 3 union territories in India as of December 31, 2022. For the period ended on December 31, 2022 and for the Fiscal 2022, 2021 and 2020 and online sales from e-commerce platform constituted 18.91%, 16.19%, 8.87% and 1.24% of its revenue from operations respectively.
• Intend to use a part of the Net Proceeds towards (i) construction of factory building at proposed new manufacturing facility at Tumakuru (ii) towards installation of additional plant and machinery.
• At present, its maximum revenue is generated from southern region.
• It has been developing revenue from sales to few modern retail chains such as DMART, Reliance Retail Limited, StarBazaar and for the period ended on December 31, 2022 and Fiscal 2022, 2021 and 2020 our revenue from these retail chains were Rs 275.26 lakhs, Rs 145.74 lakhs, Rs 5.77 lakhs and Rs 191.99 lakhs respectively.
• Commenced operations from a small size trading company in kitchen appliances to a manufacturing company with wide range of products like: Gas Stoves, Pressure Cookers, Mixer Grinders, Wet Grinders, Electric Rice Cooker, Induction Cooktops,

• Crisil assigned rating in May 2023

• Greenchef Appliances Limited has received prestigious awards in the past that bear testimony to the customer confidence:
•  Recognition of excellence for the Best Home & Kitchen Appliances Manufacturer by Karnataka Business Awards 2022.
•  India’s Best Brand of the year Awards 2022, Organized by Berkshire Media LLC, USA.
•  Fastest Growing Brands in FY 19-20 for category Home and Kitchen Appliances by United Research Services.
•  Asia’s Most Trusted Brand in 2021 by International Brand Consulting Corporation, USA

• The listed peers mentioned by the company in RHP are much larger in size but fall in almost same segment. They are quoting at PE x as indicated below

• Its PE ratio is 15x (fy23 earnings annualized), 264x (FY22 earnings). Such quantum jump in earning in 9m, FY23 raises some eyebrows.
• The lead book running manager is Hem Securities. The IPOs lead managed by them have given a good return to the investors. These include names like Vasa Denticity, Chaman Mettalics, Systango Technologies, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc
• Hem Finlease Ltd is the market maker for the issue.
• I intend to apply in Greenchef Appliances IPO.
• GMP as reported on social media has been steady or rising and may be Rs. 40-50

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.