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Mumbai’s Bakery Darling, Grill Splendour Services, gears up for IPO


Mumbai, often hailed as the city of dreams, is not just a melting pot of cultures but also a hub of culinary delights. Among its many culinary treasures, Grill Splendour Services Ltd (GSSL), a prominent bakery and patisserie chain, stands out. As GSSL gears up for its Initial Public Offering (IPO) on 15th April 2024, investors are eyeing this opportunity with great interest. Let’s delve into the details of GSSL’s IPO, its journey, financial performance, and what it means for potential investors.

Founded in 2019, Grill Splendour Services Ltd embarked on a mission to revive the iconic Birdy’s Bakery brand, a beloved name in Mumbai’s bakery scene. With the acquisition of Birdy’s, GSSL embarked on a journey of transformation, investing substantially in revamping stores and enhancing customer experiences. Today, GSSL boasts 17 retail outlets, including 5 franchised and 12 company-owned stores, catering to a loyal customer base across retail and corporate segments.

GSSL’s IPO will offer 1,372,800 equity shares at INR 120 per share, aiming to raise INR 16.47 crore. The subscription window opens on April 15th and closes on April 18th, 2024. The funds raised will fuel working capital, debt repayment, and general corporate purposes. Examining GSSL’s financial trajectory unveils a pattern of growth. FY21 witnessed revenue of INR 8.25 crore with a net loss, whereas FY22 showcased improvement with revenue touching INR 11.52 crore and a marginal net profit. FY23 continued the positive trend with revenue surging to INR 15.32 crore and a significant net profit of INR 1.99 crore. The initial eight months of FY24 maintained this momentum, recording a net profit of INR 0.62 crore on revenue of INR 8.86 crore.

GSSL’s impressive average EPS of INR 6.63 over the last three years and a high Return on Net Worth (RONW) of 117.82% are noteworthy. However, concerns arise regarding the aggressive IPO pricing strategy and the absence of Return on Capital Employed (RoCE) data in the offer document. The price-to-book value (P/BV) ratio, standing at 9.02 based on pre-IPO NAV and 2.81 based on post-IPO NAV, adds another layer of complexity.


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