Vandan Foods IPO GMP, Price, Review & Lot Size
Introduction
Vandan Foods Limited, a Gujarat-based manufacturer, specializes in refined F.S.G. castor oil and its byproduct, de-oiled cake. These products are vital inputs for diverse industries, including pharmaceuticals, cosmetics, and agriculture.
After starting as a catering company in 2015, Vandan Foods pivoted into agro-trading before establishing its own manufacturing unit in FY 2024. This transition has fueled remarkable growth, with revenue soaring from ₹11.59 Cr in FY23 to ₹48.73 Cr in FY24. The company is now launching its Initial Public Offering (IPO) to secure capital for further B2B expansion in the promising castor oil segment.
Vandan Foods IPO Overview
The upcoming IPO is a book-built issue consisting entirely of fresh shares, with proceeds aimed at funding working capital and capital expenditure to scale operations.
Vandan Foods IPO Date and other Details
- IPO Open Date: June 30, 2025
- IPO Close Date: July 2, 2025
- Allotment Date: July 3, 2025
- Tentative Listing Date: July 7, 2025 (BSE SME)
- Issue Allocation: Retail (47.5%), NII/HNI (47.5%), Market Maker (5%)
Vandan Foods Financial Performance Summary
The company has demonstrated explosive growth since commencing manufacturing operations. Revenue for the nine months ended Dec 31, 2024, has already surpassed the full-year FY24 figure, indicating strong business momentum.
| Particulars | 9M Ended Dec 31, 2024 | Year Ended Mar 31, 2024 | Year Ended Mar 31, 2023 | Year Ended Mar 31, 2022 |
|---|---|---|---|---|
| Revenue from Operations | 7,266.38 | 4,873.04 | 1,159.35 | 147.55 |
| Profit Before Tax | 606.13 | 353.54 | 85.90 | (13.61) |
| Profit After Tax (PAT) | 453.59 | 264.43 | 64.28 | (11.43) |
Valuation & Peer Comparison
Valuation
At an issue price of ₹115 per share, Vandan Foods is valued at a trailing twelve-month (TTM) P/E ratio of approximately 18.5x. While its internal growth is strong, this valuation appears steep when compared to the market sentiment for similar agro-based companies.
Peer Context
A notable peer, Rajgor Castor Derivatives, which has significantly larger sales (approx. ₹600 Cr vs. Vandan's ₹75 Cr), trades at a much lower P/E multiple of around 5.5x. The poor listing performance of some agro-product IPOs suggests that the market remains cautious about this sector, posing a potential risk for Vandan's debut.
Vandan Foods IPO Grey Market Premium (GMP) today
The Grey Market Premium (GMP) for Vandan Foods is currently subdued, indicating limited unofficial trading activity and muted expectations for listing gains.
| Date | GMP (₹) | Notes |
|---|---|---|
| July 7, 2025 (Tentative Listing) | ₹0 | Indicates listing at or near the issue price of ₹115. |
Risks & Opportunities
Risks
- Price Volatility: Margins are exposed to fluctuations in castor seed prices.
- Product Concentration: High dependence on a single product line increases operational risk.
- Competition: Regulatory shifts and new market entrants could pressure profitability.
- Cyclical Demand: Business performance is tied to economic conditions affecting end-user industries.
Opportunities
- Market Growth: Rising demand for castor oil in pharma, cosmetics, and biofuels.
- Capacity Expansion: IPO funds of ₹8.29 Cr are earmarked to boost production capacity.
- Business Momentum: Exceptional FY24 growth demonstrates strong operational execution.
- Government Support: Favorable policies for agro-based and sustainable industries.
Outlook & Final Take
Vandan Foods presents a classic case of strong operational growth versus a high-risk market segment. The planned capital expenditure should enhance its production capabilities and help it capitalize on the growing demand for castor-based products. However, the premium valuation and the market's historical skepticism towards agro-commodity IPOs are significant headwinds.
Investors should weigh the company's impressive financial trajectory against the potential for a muted listing. The lack of GMP suggests a cautious approach is warranted. A subscription decision should be based on a high-risk appetite and a long-term belief in the company's ability to sustain its growth post-listing.
