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Grill Splendour Services Limited IPO Review: Grill Splendour Services is offering an IPO valued INR 1,647.36 lakhs, comprising of a new issue of 13,72,800 shares of INR 50 each. To ensure long-term stability and growth, the corporation intends to increase working capital, settle debts, and support basic corporate responsibilities.
Grill Splendour Services Limited IPO – Important Dates
| Grill Splendour Services Limited IPO Date | April 15, 2024 to April 18, 2024 |
| Grill Splendour Services Limited IPO Listing Date | April 23, 2024 |
| Grill Splendour Services Limited IPO Price | INR 120 per share |
| Grill Splendour Services Limited IPO Lot Size | 1200 shares |
| Grill Splendour Services Limited IPO Total Issue Size | INR 1,647.36 lakhs |
| Grill Splendour Services Limited IPO Basis of Allotment | April 19, 2024 |
| Grill Splendour Services Limited IPO Initiation of Refunds | April 22, 2024 |
| Grill Splendour Services Limited IPO Credit of Shares to Demat | April 22, 2024 |
| Grill Splendour Services Limited IPO Issue Type | Fixed Price Issue IPO |
| Grill Splendour Services Limited IPO will be listed at | NSE, SME |
Grill Splendour Services Limited IPO – Company Profile
Grill Splendour Services Limited, a Mumbai-based gourmet bakery and patisserie brand, has 17 retail locations and a central production plant. Five franchisee-owned and 12 company-owned restaurants cater to a wide range of gastronomic interests. The managing director of the company is Mr. Srinidhi V Rao.
It was founded in November 2019 and purchased Birdy’s Bakery and Patisserie from WAH Restaurants Private Limited. Following the acquisition, it launched growth and brand extension initiatives through strategic investments and enhanced market presence.
They specialize in selling cakes, pastries, cuisine, beverages, and desserts. Their product categories cater to a variety of culinary inclinations, providing customers with a wide choice of options.
Grill Splendour Services Limited IPO Financials
Grill Splendour Services Limited’s financial analysis reveals varied results. Revenue initially increased but eventually fell short. Profitability and equity increased, while return on net worth decreased, indicating contrasting facets of the company’s performance.
- Revenue Trend: The revenue rose from ₹1,150.49 lakhs in March 2022 to ₹1,529.35 lakhs in March 2023. The revenue for the current fiscal year’s eight-month period ending November 2023 is INR 833.64 lakhs, falling shy of the previous year’s benchmark.
- Equity and Liabilities: Both equity and liabilities have consistently increased over time, indicating future growth and expansion.
- Profitability: Profit after tax (PAT) has increased from ₹3.46 lakhs in March 2022 to ₹16.65 lakhs in November 2023. This increase in profitability could reassure investors.
- Earnings per Share (EPS): The diluted EPS decreased from ₹30.64 in March 2022 to ₹1.61 in November 2023, showing decreased earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has fallen from 204.73% to 12.46%, suggesting a decline in the company’s capacity to create returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Grill Splendour Services Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 November 2023 |
| Revenue (₹ in lakhs) | 1,150.49 | 1,529.35 | 883.64 |
| Equity (₹ in lakhs) | 1.69 | 200.79 | 494.98 |
| Expenses (₹ in lakhs) | 1,125.83 | 1,241.07 | 775.28 |
| Profit and Loss After Tax (₹ in lakhs) | 3.46 | 199.10 | 61.65 |
| Diluted EPS only (₹) | 34.60 | 1991 | 1.61 |
| Return on Net Worth (%) | 204.73 | 99.16 | 12.46 |
| NAV per Equity Share (₹) | 16.90 | 2,007.90 | 12.91 |
| Total Assets (in lakhs) | 290.59 | 764.02 | 2,211.54 |
| Total Liabilities (in lakhs) | 288.9 | 563.23 | 1,716.56 |
Grill Splendour Services Limited IPO Peer Comparison
Grill Splendour Services Limited generates moderate revenue and net profit, whilst Westlife Foodworld experiences significant revenue growth. Sapphire Foods has continuous income, while Jubilant Foodworks has large revenue and profitability.
| Company | Total Revenue (₹ in crores) | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Grill Splendour Services Limited | 15.32 | 10 | 9.10 | 13.19 | 13.19 | 99.16 | 13.30 |
| Westlife Foodworld | 2298.50 | 2 | 112.36 | 7.16 | 7.16 | 19.72 | 36.29 |
| Sapphire Foods | 1962.78 | 10 | 42.77 | 36.70 | 36.70 | 18.60 | 197.33 |
| Jubilant FoodWorks | 5095.99 | 2 | 83.80 | 5.35 | 5.35 | 17.32 | 30.88 |
Grill Splendour Services IPO Objective
Grill Splendour Services Limited’s primary objective is to meet its funding requirements for additional working capital and to prepay or repay outstanding borrowings, so providing financial stability and flexibility.
- Funding Additional Working Capital Requirements: The company intends to use INR 100 lakhs from the IPO proceeds, or about 6% of the Issue size, together with internal accruals and equity funding to satisfy future working capital requirements.
- Prepayment/repayment, in whole or in part, of certain outstanding borrowings made available by the company: The company intends to use INR 1,115.00 lakhs from the Net Proceeds to repay/prepay borrowings from BRFL, therefore reducing existing debts and associated borrowing costs, including interest and prepayment penalties.
- General Corporate Purposes: The corporation will allocate funds for various corporate purposes such as funding growth possibilities, strategic initiatives, collaborations, marketing, brand development, facility expansion, and meeting unexpected expenses.
Grill Splendour Services Limited IPO Risks and Challenges
Grill Splendour Services Limited’s risks include managing rapid growth, relying on top customers for retail sales, and responding to changing consumer tastes as a result of the advent of food delivery services.
- Grill Splendour Services Limited faces challenges in managing rapid expansion, such as operational needs, workforce, and financial resources, which can have an impact on business prospects, economic health, and operational efficiency.
- They produce retail sales through continuous and walk-in customer interactions, particularly using the “Birdy’s” brand. Despite efforts to diversify and retain client relationships, revenue reliance on top consumers creates financial risk.
- The growth of food delivery services, primarily through third-party aggregators, creates both opportunities and challenges for their organization. A greater dependence on delivery may affect foot traffic and necessitate adaptation to shifting consumer preferences.
Grill Splendour Services Limited IPO – Industry & Market Potential
India’s economy recovers, placing fifth globally with a 4% GDP gain in FY 2022-23. Contact-intensive services, increased employment, and government spending all drive growth, highlighting market opportunity.
India’s food service business, valued at Rs. 4,23,865 crore in 2018-19, is expected to grow to US$ 79.65 billion by 2028, owing to changing demographics, urbanization, and increased internet penetration.
The food services market in India is expected to develop significantly, reaching $79.65 billion by 2028. Despite problems, the industry has demonstrated resiliency, particularly in the quick-service restaurant market.
Grill Splendour Services Limited IPO Allotment Structure
Grill Splendour Services Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, another category for investors over ₹2 lakhs, and a reservation of 69,600 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares worth less than Rs. 2 lakhs.
- Other than retail individual investors: Such applications have a value that exceeds INR 2 lakh.
- Market Makers Reservation: Market makers are allocated a specific percentage or number of shares. The corporation has reserved 69,600 shares for this purpose.
Grill Splendour Services Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 15 April to 18 April 2024 | 120 | 8 | 128 (6.67%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
