IPO Details
RHP/DRHPIssue Date
30 Jun - 2 Jul'25
Investment/lot
₹ 138000
Price Range
115
Lot Size
1200
IPO Size
₹ 30.36 Cr
IPO Listing Details
Listing On
7 Jul'25
Issue Price
--
Listed Price
₹ 125
Retail Gain/Listing Gain
▲8.70%
Schedule of Vandan Foods IPO
Start date
30/06/2025
End date
02/07/2025
Allotment of bids
03/07/2025
Refund Initiation
04/07/2025
Listing on exchange
07/07/2025
About Vandan Foods IPO
The IPO of Vandan Foods Ltd comprises a fresh issue of up to 26,40,000 equity shares, aggregating to 30.36 crores. There’s no offer for sale in this IPO, which is a fixed price issue. The lot size is 1200 and the price band is ₹115 per share.
The IPO opens on June 30, 2025 and closes on July 2, 2025. The shares will be allotted on July 3, 2025. The basis of allotment will take place on July 3, 2025 and the refunds will be initiated on July 4, 2025.
Objectives of Vandan Foods IPO
- To meet working capital requirements
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- Funding the capital expenditure requirement for expansion of its Dhinoj facility
- General corporate purpose
Vandan Foods IPO Valuation
Industry Outlook
The global castor oil market was valued at USD 1.4 billion in 2022, and is expected to grow at a CAGR of 5.1% from 2023 to 2032. The market is expected to reach USD 2.3 billion by 2032. Throughout the forecast period, castor oil is expected to see high demand from the pharmaceutical and cosmetics sectors.
Rising healthcare costs and public awareness of preventive care and self-management drive demand for cosmetics and pharmaceutical products. The product's increasing use in creating skincare, cosmetic, and soap goods is also expected to increase its demand.
Company Information
Prior to the financial year 2018, Vandan Foods Ltd was engaged in the catering business. However, from financial year 2018 till financial year 2023, it was engaged in the trading of agro commodities. Thereafter, from the financial year 2024, its current promoters have been actively managing the business of manufacturing Castor Oil and its derivatives. It’s currently operating on a B2B business model primarily focusing on Refined F.S.G. Castor Oil, Castor De Oil Cake.
Vandan Foods IPO Strengths
Quality Control and Quality Assurance
Vandan Foods Ltd has received ISO 9001:2015 certificate, certifying that its quality management system is in accordance with the requirements of ISO 9001:2015 with regard to manufacture of castor oil and castor de oiled cake. It believes that quality is an ongoing process of building and sustaining relationships.
Scalable Business Model
Its business model is customer-centric, and order-driven, and requires optimum utilisation of their existing resources, assuring quality supply and achieving consequent economies of scale. The business scale generation is basically due to the development of new markets both domestic and international by exploring customer needs and by maintaining the consistent quality output.
Smooth Flow of Operations
The company has maintained a long-standing relationship with its major customers. It’s successful in building a strong client base for its business. Its existing relationships help it to get repeat business from its customers. This has helped it to maintain a long-term working relationship with its customers and improve its customer retention strategy.
Risks of Vandan Foods IPO
- Reliance on Limited Number of Customers
A certain amount of the company’s revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.
- Dependence on Some Suppliers for Raw Materials
The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet its requirements, its business will be harmed.
An inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.
- Geographical Concentration
The company’s revenues are highly dependent on its operations in the geographical region of state of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on its business, financial condition and result of operations.
All Financial Information about Vandan Foods
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Equity Share (in ₹) |
|---|---|---|---|---|
Vandan Foods Ltd | 48.7304 | 4.64 | 27.92 | 16.62 |
NK Industries Ltd | 19.1221 | (1.71) | 0.34 | (572.66) |
Jayant Agro Organics Ltd | 215.00431 | 17.59 | 10.12 | 181.07 |
Anchor Investor bidding date is June 27, 2025.
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Manager: Nirbhay Capital Services Pvt Ltd
Business Model
The company’s products include:
-
Refined Castor Oil First Stage Grade: Castor oil is a yellow viscous liquid free from suspended matter and insoluble in water. It is produced by refining commercial grade Castor Oil after undertaking the bleaching and filtering process.
-
Castor De Oiled Cake: Castor De-Oil Cake is produced by crushing castor seeds in an expeller to extract oil from it in a controlled temperature with the help of steam.
Company Growth Trajectory
The revenue from operations of Vandan Foods Ltd grew from ₹1.4755 crores in FY 22 to ₹48.7304 crores in FY 24. Its EBITDA margin grew from - 5.27% in FY 22 to 7.48% in FY 24, while net profit margin increased from -7.75% in FY 22 to 5.43% in FY 24. It has constantly expanded the distribution network across the country and this continues to be one of the core strategies to further expand its domestic presence in new markets.
Diversified business model and customer base coupled with optimal utilisation of resources has aided the company’s growth over the years.
Market Position
Originally incorporated as Vandan Foods Pvt Ltd, the company is ISO certified, the company serves a diverse mix of end markets across the industry. Its differentiated product offerings have enabled it to build a sustainable business model which is reflected in its growth in revenue.
Vandan Foods IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 48.7304 | 11.5935 | 1.6113 |
Profit Before Tax (in ₹ crores) | 3.5354 | 0.8590 | (0.1361) |
Profit After Tax (in ₹ crores) | 2.6443 | 0.6428 | (0.1143) |
EPS in ₹ | 9.21 | 47.12 | -114.35 |
Vandan Foods IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 3.5354 | 0.8590 | (0.1361) |
Net Cash Flow Generated from/ (utilised in) Operating Activities (in ₹ crores) | 0.8808 | 2.6110 | 0.2495 |
Net Cash Flow Utilised in Investing Activities (in ₹ crores) | (5.3655) | NA | NA |
Net Cash Flow generated from/ (utilised in) Financing Activities (in ₹ crores) | 4.2554 | (1.4782) | (0.2492) |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.9880 | 1.2173 | 0.0845 |
How to Check Allotment Status of Vandan Foods IPO?
1. Visit the Registrar’s Website
- Visit the official website of Bigshare Services Pvt Ltd
- Click on ‘IPO Allotment Status’ from ‘Solutions’
- Click on any one of the servers
- Choose company name and enter either your application number, PAN no or beneficiary ID
- Enter captcha and click on ‘Search’ to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Vandan Foods IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vandan Foods IPO FAQs
When is Vandan Foods IPO listing date?
Vandan Foods IPO will list on 2025-07-07.
What is the issue size of Vandan Foods IPO?
30.36 is the issue size of Vandan Foods IPO.
What is the minimum lot size required for Vandan Foods IPO?
The minimum lot size is 1200 shares and the investment required is ₹138000.
What is the price band of the Vandan Foods IPO?
The price band of Vandan Foods IPO is ₹115 to ₹0.
Where can I read more about Vandan Foods business?
You can read more about Vandan Foods and its IPO from the company’s red herring prospectus (RHP) here.
What is the Vandan Foods IPO?
The IPO of Vandan Foods Ltd comprises a fresh issue of up to 26,40,000 equity shares.
When will the IPO of Vandan Foods go live?
The exact dates of the IPO have been announced. The IPO will go live on June 30, 2025 and will close on July 2, 2025.
From where can I read more about the IPO of Vandan Foods IPO?
You can read more about the IPO of Vandan Foods Ltd from the company’s red herring prospectus here.
