Vandan Foods IPO GMP

Vandan Foods IPO GMP & Review 2025: Everything You Need to Know

The Indian SME IPO space is heating up, and one name making headlines this week is Vandan Foods Limited. The company has launched its SME IPO with a fixed price issue, and investors are eager to evaluate whether this castor oil manufacturer is worth betting on. If you're searching for reliable insights on the Vandan Foods IPO GMP, key dates, issue details, strengths, risks, and a quick financial review—this comprehensive guide is your answer.

Let’s break it down.

About Vandan Foods Ltd

Founded in 2015, Vandan Foods Limited is a Gujarat-based manufacturer and trader of Refined First Stage Grade (F.S.G.) Castor Oil and Castor De-Oiled Cake. The company has built its business across both retail and wholesale segments, distributing products in multiple states including Gujarat, Andhra Pradesh, Delhi, Rajasthan, Telangana, and more.

Their two primary products include:

• Refined F.S.G. Castor Oil: Known for its application in pharmaceuticals, paints, lubricants, textiles, and even personal care. It’s also a go-to product in the health market due to its skin and hair benefits.
  
  

• Castor De-Oiled Cake: A popular organic fertiliser alternative, rich in nitrogen and potash, which boosts soil fertility and microbial activity.
  
  

With manufacturing plants situated in Dhinoj Patan, Gujarat, the company has scaled its operations strategically.

Vandan Foods IPO Details

• IPO Open Date: 30 June 2025
  
  

• IPO Close Date: 2 July 2025
  
  

• IPO Price: ₹115 per share (Fixed Price)
  
  

• Lot Size: 1200 Shares
  
  

• Total Issue Size: ₹30.36 Cr
  
  

• Fresh Issue: 26.4 lakh shares
  
  

• Listing Date (Expected): 7 July 2025
  
  

• Stock Exchange: BSE SME
  
  

• Registrar: Bigshare Services Pvt Ltd
  
  

There is no offer-for-sale (OFS) component, indicating that the proceeds will fully go toward business development.

Vandan Foods IPO GMP (Grey Market Premium)

As of the latest update on 26 June 2025, the Vandan Foods IPO GMP is yet to be active. The grey market is currently watching how investor sentiment evolves before listing. Historically, in cases like these, GMP activity usually picks up closer to the listing date.

Although no official Vandan Foods IPO GMP is currently available, investors are closely monitoring subscription figures to gauge interest and potential listing gains.

Financial Performance Snapshot

Here’s a look at the financials as disclosed in the RHP:

Clearly, the company has shown significant year-on-year growth in revenues and profits, especially in the most recent quarter.

Valuation and P/E Ratio

At the issue price of ₹115 and based on FY24 earnings (EPS ₹4.64), the Vandan Foods IPO is valued at a P/E ratio of 24.78x, which is higher than the industry average of 14.98x. The 3-year weighted EPS yields a P/E of 42.28x, reinforcing that the stock is priced on the aggressive side.

This means investors should factor in the premium valuation while making decisions.

Objective of the IPO

Vandan Foods aims to utilise the IPO proceeds for:

• Working capital requirements
  
  

• CAPEX investment in the Dhinoj facility
  
  

• Partial repayment of loans
  
  

• General corporate purposes
  
  

These objectives signal operational expansion and financial cleanup, both of which are critical for long-term sustainability.

Strengths of the Company

• Niche Product Range: Refined castor oil and organic fertilisers are high-demand, high-margin segments.
  
  

• Diversified Customer Base: Spread across multiple Indian states.
  
  

• Experienced Promoters: Backed by seasoned leadership and a scalable business model.
  
  

• Vertical Integration: Control over both production and distribution.
  
  

Weaknesses and Risks

• High Valuation: As mentioned earlier, the IPO is priced higher than peers.
  
  

• Negative Cash Flows (Latest Quarter): FY24 till December showed negative cash flow from operations.
  
  

• Labour-Intensive: The business requires continuous human resource inputs and just-in-time inventory.
  
  

Peer Comparison

The company lists Jayant Agro Organics and NK Industries as peers. However, based on the peer P/E data, Vandan appears slightly overvalued. Investors seeking growth potential must weigh this premium against the company’s scalability.

Final Verdict

The Vandan Foods IPO presents a compelling opportunity in the FMCG-agriculture crossover sector. Backed by consistent revenue growth and product demand, it is positioned well for long-term expansion. However, investors should tread cautiously due to the rich valuation and lack of current GMP.

With the Vandan Foods IPO GMP not yet established, listing gains may depend on overall market sentiment and retail interest.