Listed

Vandan Foods Limited IPO

Vandan Foods Limited, a Gujarat-based producer of refined castor oil and castor de-oiled cake, opens its IPO from June 30 to July 2, priced at ₹115 per share. The company aims to raise ₹30.36 crore on the BSE SME platform to support working capital, debt reduction, and expansion of its Dhinoj facility. With FY24 revenue near ₹72.7 crore and a PAT of ₹4.5 crore, Vandan Foods plans to scale production and strengthen balance-sheet resilience as demand for its castor derivative products continues to grow.

DRHP Final Prospectus Check Allotment Status

Min Investment

₹1,38,000

Lot Size

1200 Shares

Price Range

₹115.0

Issue Size (₹ Cr.)

₹30.36

IPO Type

BSE SME

Key Metrics

Face Value

₹ 10

GMP

₹ 0

Subscription

1.75x

EPS

₹ 7.21

P/E Ratio

15.94 x

RoNW

27.92%

ROE

45.41%

Debt to Equity (₹ Cr.)

0.99

Timeline

IPO Opened30/06/2025Monday

IPO Closed02/07/2025Wednesday

Allotted03/07/2025Thursday

Refunded04/07/2025Friday

Listed07/07/2025Monday

Strengths

Established Castor Oil Processor - The company specializes in refined castor oil and castor de-oiled cake, with an existing customer base in both domestic and export markets.
Growing Revenue Base - Vandan Foods posted strong revenue growth, reaching approximately ₹72.7 crore in FY24, showing healthy demand and operational scale-up.
Export Market Reach - A portion of revenue is generated from exports, which provides diversification and access to global demand for industrial castor products.
Integrated Production Facility - Its manufacturing unit in Dhinoj, Gujarat, supports efficient production and proximity to castor seed suppliers.
BIS and ISO Certifications - The company holds key certifications that enhance product credibility and support acceptance in regulated and quality-conscious markets.

Weaknesses

High Leverage in FY24 - The debt-to-equity ratio rose to 0.99× as of Dec 2024, increasing financial risk and repayment obligations.
Limited Product Diversification - The company relies mainly on two products—refined castor oil and DOC—which could pose risk if demand fluctuates in either segment.
Geographic Dependence - With operations centered in Gujarat, any regional disruptions (climate, logistics, or policy) could impact the business.
Working Capital Intensive - The nature of raw material procurement and processing requires significant working capital, increasing the need for careful cash flow management.
Relatively New Brand Presence - As an SME, Vandan Foods still lacks broad brand visibility in India's competitive edible and industrial oil markets.