Mother Nutri Foods IPO Overview
B2B peanut butter manufacturer raising ₹39.59 cr via fresh issue ₹31.67 cr + OFS ₹7.92 cr of 33.84L shares. Price: ₹111-117. Lot: 1,200 shares (₹2.81L min). Funds for new Gujarat plant (₹23.2 cr), corporate purposes. Founded 2022 (only 3 yrs old).
Brand: “Spread & Eat” (Libya, Dubai, Japan). 10+ flavors, 12 variants peanut butter. 97% B2B private label (68% domestic, 29% export to 20+ countries). Facility: 4,047 sqm Mahuva, Gujarat. FY25: ₹90.48 cr revenue (+12%), ₹6.47 cr PAT (+36%). P/E: 19-20x. GMP: ₹0 (flat). Anchor: ₹10.99 cr raised. Listing: BSE SME Dec 3.
Lead: Marwadi Chandarana. Very new company, 97% B2B dependency, flat GMP, sudden profit jump, single facility risk. Competes with Pintola, Dr. Oetker FunFoods, Veeba.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 26 November 2025 (Tuesday) |
| IPO Close Date | 28 November 2025 (Thursday) |
| Anchor Investor Date | 25 November 2025 (Monday) |
| Allotment Date | 1 December 2025 (Monday) – Expected |
| Credit to Demat | 2 December 2025 (Tuesday) – Expected |
| Refund Initiation | TBD |
| Listing Date | 3 December 2025 (Wednesday) – Tentative |
| Price Band | ₹111 – ₹117 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Min Investment (Retail) | ₹2,80,800 (2 lots / 2,400 shares at upper band) |
| sHNI Investment | ₹4,21,200 (3 lots / 3,600 shares) minimum |
| bHNI Investment | ₹11,23,200 (9 lots / 9,000 shares) minimum |
| Issue Size | ₹39.59 crore total |
| Fresh Issue | ₹31.67 crore (80%) – 27,07,200 shares |
| Offer for Sale (OFS) | ₹7.92 crore (20%) – 6,76,800 shares by promoter Umeshbhai Kantilal Sheth |
| Total Shares Offered | 33,84,000 equity shares |
| Listing | BSE SME (Emerge Platform) |
| Post-Issue Market Cap | ~₹146.66 crore (at upper price band) |
| P/E Ratio | ~19-20x (FY25 basis) |
| EPS | ₹5.80-6.19 (annualized) |
| Anchor Investment | ₹10.99 crore raised from anchor investors on Nov 25 (9,39,600 shares – 27.77%) |
Issue Break-up
| Category | Allocation | Shares |
| QIB (Qualified Institutional Buyers) | 15,69,600 shares (ex-anchor: 6,30,000) | 46.38% (18.62% ex-anchor) |
| NII (Non-Institutional Investors) | 4,71,600 shares | 13.94% |
| Retail Individual Investors | 10,99,200 shares | 32.48% |
| Anchor Investors | 9,39,600 shares | 27.77% |
| Market Maker | Not disclosed | ~5-6% |
Note: Strong anchor allocation (27.77%) with ₹10.99 cr commitment. Standard SME IPO allocation pattern.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹31.67 crore / ₹3,167 lakhs) will be used for:
- Setting Up New Manufacturing Facility at Mahuva, Gujarat – ₹23.20 crore (73.3%)
- New production plant with 7,200 MTPA capacity (vs current 8,000 MTPA)
- Nearly doubling capacity to meet rising demand
- Expansion in same location (Mahuva, Bhavnagar, Gujarat)
- State-of-the-art equipment and infrastructure
- General Corporate Purposes – ₹8.47 crore (26.7%)
- Strategic initiatives, marketing, working capital support
OFS Proceeds (₹7.92 crore):
- Goes to selling promoter Umeshbhai Kantilal Sheth
- Partial exit/liquidity for promoter
- 6,76,800 shares being sold
Strategic Focus:
- Massive capacity expansion – adding 7,200 MTPA (90% increase)
- Scaling to meet B2B and export demand
- Current capacity utilization: 71.07% (FY25) – room to grow before new facility
- Positioned to capture increasing global peanut butter demand
Note: 80% fresh issue for growth, 20% OFS for promoter exit.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Marwadi Chandarana Intermediaries Brokers Private Limited
- Address: X-change Plaza, Office No. 1201 to 1205, 12th Floor, Building No. 53E, Zone-5, Road 5E, Gift City, Gandhinagar – 382355, Gujarat
- Phone: +91 22 6912 0027
- Email: [email protected]
- Website: ib.marwadichandaranagroup.com
- Track Record: Active lead manager in SME space
Registrar:
- Bigshare Services Private Limited
- Address: 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400 059, Maharashtra
- Phone: +91-22-6263 8200
- Website: https://ipo.bigshareonline.com/IPO_Status.html
Market Maker:
- Mansi Share & Stock Broking Private Limited
Promoters & Management
Key Promoters – Thakar-Sheth Family (6 Promoters):
- Mr. Chintan Rajnikant Thakar – Chairman & Managing Director (Age 39)
- Promoter and CMD
- PG Diploma in Management (Finance) from Chanakya Institute
- 5 years food processing experience
- Former partner at Mother Nutri Foods (since 2020)
- Joined as Director on January 25, 2022
- Oversees business development and strategic growth
- Mr. Umeshbhai Kantilal Sheth – Whole-Time Director (Age 62)
- Promoter and WTD
- 10 years food processing experience
- Former partner at Mother Nutri Foods (since 2015)
- Joined as Director on January 25, 2022
- Responsible for operations, accounts, finance
- Selling 6.76L shares in OFS (₹7.92 cr)
- Mr. Rajnikant Indubhai Thakar – Executive Director (Age 66)
- Promoter and ED
- 10 years industry experience
- Former partner at Mother Nutri Foods (since 2015)
- Joined as Director on January 25, 2022
- Oversees marketing and overall operations
- Mr. Parth Umeshkumar Sheth – Promoter
- Mrs. Naynaben Rajnikant Thakar – Promoter
- Mrs. Vandnaben U Sheth – Promoter
Company History:
- Founded 2012 as “Mother Nutri Foods” (proprietorship/partnership)
- Incorporated January 25, 2022 as Mother Nutri Foods Limited – Only 3 years old as company!
- Earlier Operations: Operated as partnership firm since 2012 before converting to limited company
- Operating Brand: “Spread & Eat” for own-brand sales
- Location: Mahuva, Bhavnagar, Gujarat – “Bowl of India” (peanut belt)
Company Contact:
- Registered Office: Survey No 276/1, Opp. Petrol Pump Mahuva-Bhavnagar Road, At Otha, Mahuva, Bhavnagar – 364295, Gujarat, India
- Manufacturing Facility: Same location – 4,047 sq. meters (current), expanding with 7,200 MTPA new facility
- Phone: +91 99744 14123
- Website: www.mothernutrifoods.com
- Workforce: 41 employees (as of July 31, 2025)
COMPANY OVERVIEW
Establishment & Background:
- Incorporated as limited company in January 2022 (only 3 years old as corporate entity)
- Operating as partnership firm since 2012 (13 years operational history)
- Industry: Food Processing – B2B Peanut Butter Manufacturing
- Headquartered in Mahuva, Bhavnagar, Gujarat – India’s peanut bowl
- Geographic Presence: Exports to 20+ countries globally + domestic India
Business Model:
- Pure-Play B2B Peanut Butter Manufacturer with dual revenue streams
- Primary Business (97% revenue): Private Label Manufacturing for global retailers, hypermarkets, supermarkets
- Clients provide their brand specifications
- Mother Nutri manufactures under client’s brand name
- 68% domestic, 29% international (as of Sep 2025: 96.99% private label)
- Secondary Business (3% revenue): Own Brand “Spread & Eat”
- Currently in Libya, Dubai, Japan markets
- Growing but still nascent stage
- Product Portfolio:
- 10+ Flavors: Natural, chocolate, honey, coconut, cinnamon, pineapple, strawberry, others
- 12+ Variants/Ranges: Natural, creamy, crunchy, less fat, whole nut, high protein, no added sugar & salt
- Top 3 Variants: Natural, Creamy, Crunchy (contribute 49-60% of revenue)
- Chocolate flavor: Largest revenue contributor among flavors
- Secondary Product: Roasted peanuts (minor contributor)
- Packaging Range: Sachets (20-100g), Jars (100g-1kg), Bulk packs (1-250 kg)
- Shelf Life: 12-24 months
- Target Markets:
- Export (20+ countries): UK, Canada, USA, South Africa, UAE, Saudi Arabia, Russia, Germany, Portugal, Mexico, Mauritius, British Virgin Islands, Spain, Nepal, Bangladesh, Philippines, Kuwait, Israel, Oman, Kenya
- Domestic: Indian hypermarkets, supermarkets, retail chains
- Capacity:
- Current: 8,000 MTPA (metric tons per annum)
- Utilization: 71.07% (FY25)
- Expansion: Adding 7,200 MTPA new facility (90% capacity increase)
Market Position:
- Niche B2B player focused on private label peanut butter manufacturing
- Competing against established brands: Pintola (Das Foodtech), Dr. Oetker FunFoods, Veeba
- Positioned as quality manufacturer with global food safety certifications
- Strategic location near peanut sourcing area and major ports (Pipavav, Mundra)
Operations:
- Manufacturing Facility: 4,047 sq. meters in Mahuva, Bhavnagar, Gujarat
- Technology: State-of-the-art machinery imported from USA
- Quality Certifications: ISO 22000:2018, BRCGS, FSSC 22000, Kosher, Halal, RSPO, APEDA, FSSAI
- In-house Lab: Equipped for testing Aflatoxin and Salmonella
- Raw Material: Hand-picked peanuts (HPS) from Saurashtra region of Gujarat
- Single Facility Risk: All production from one location
Company Strengths
- Strong Revenue & Profit Growth – Revenue +12%, PAT +36% (FY24 to FY25):
- FY25 revenue: ₹90.48 cr (+11.6% vs ₹81.05 cr FY24)
- FY25 PAT: ₹6.47 cr (+35.6% vs ₹4.77 cr FY24)
- H1 FY26: ₹50.20 cr revenue, ₹5.30 cr PAT (annualized run-rate exceeds FY25)
- Consistent growth trajectory with improving margins
- PAT margin: 5.89% (FY24) → 7.15% (FY25) → 10.56% (H1 FY26) – strong expansion
- Demonstrates operational leverage and efficiency
- Global B2B Presence – Exporting to 20+ Countries (29% Export Revenue):
- Established international footprint across UK, Canada, USA, South Africa, UAE, Saudi Arabia, Russia, Germany, Portugal, Mexico, and 10+ more
- Private label clients include leading global hypermarkets and retail chains
- Repeat orders from established relationships
- Export revenue de-risks from India dependency
- Premium realization in international markets
- Growing global peanut butter market beneficiary
- Robust Quality & Certifications – Multiple International Standards:
- Certifications: BRCGS, FSSC 22000, ISO 22000:2018, Kosher, Halal, RSPO, APEDA, FSSAI
- European food safety standards compliance
- In-house laboratory for Aflatoxin and Salmonella testing
- Stringent quality protocols at every production stage
- Certifications enable access to global markets and premium clients
- Trust and credibility with international retailers
- Strategic Location – Gujarat Peanut Belt with Port Connectivity:
- Located in Mahuva, Saurashtra region – India’s premier peanut growing area
- Direct access to high-quality, locally sourced peanuts
- Proximity to Pipavav and Mundra ports for efficient exports
- Lower logistics costs for raw material procurement
- Rich aroma and superior quality from Saurashtra peanuts
- Competitive advantage in sourcing and distribution
- Diversified Product Range – 10+ Flavors, 12+ Variants:
- Wide portfolio catering to varied consumer preferences
- Multiple variants: Natural, creamy, crunchy, less fat, whole nut, high protein, sugar-free
- Multiple flavors: Chocolate, honey, coconut, cinnamon, pineapple, strawberry
- Flexible packaging (20g sachets to 250kg bulk)
- Customization capability for private label clients
- Reduces dependency on single product/flavor
- Massive Capacity Expansion – Adding 7,200 MTPA (90% Increase):
- IPO proceeds (₹23.20 cr) funding new Gujarat facility
- Expanding from 8,000 MTPA to 15,200 MTPA total capacity
- Current utilization 71% – headroom exists before new facility even starts
- Positioned to capitalize on growing demand
- Scaling economies of scale
- Future revenue visibility
- Strong Anchor Support – ₹10.99 Cr Raised (27.77% of Issue):
- Significant institutional backing with anchor investment
- ₹10.99 crore commitment from anchor investors (Nov 25)
- 9,39,600 shares subscribed by anchors
- Validates company fundamentals and growth story
- Provides stability and confidence for retail investors
- Reduces risk of under-subscription
Key Risks & Challenges
- Very New Company – Incorporated 2022 (Only 3 Years Old):
- Company incorporated as limited entity on January 25, 2022 – only 3 years old
- Although partnership firm existed since 2012, corporate structure is very new
- Limited track record as organized company
- Corporate governance and systems still evolving
- Management execution at scale untested in corporate form
- Higher risk vs established companies
- Investors banking on very young corporate entity
- Flat GMP (₹0) – Zero Grey Market Interest and Premium:
- GMP at ₹0 for past 3+ days (Nov 22-26) – completely flat
- Zero grey market enthusiasm or speculation
- Indicates muted investor sentiment and skepticism
- Expected listing price = issue price (₹117)
- High risk of flat or negative listing
- No Day 1 listing gain expectations
- Market cautious about new company, B2B model, and valuation
- Extreme B2B Dependency – 97% Revenue from Private Labeling:
- Private label business: 96.99% of revenue (H1 FY26), 97%+ average
- Own brand “Spread & Eat”: Only 3.01% revenue
- Vulnerable to client concentration and bargaining power
- No brand equity with end consumers
- Clients can switch to other manufacturers easily
- Pricing pressure from large retail chains
- Limited control over brand building and customer loyalty
- Survival depends entirely on B2B relationships
- Sudden Profit Jump – 36% PAT Increase Raises Sustainability Questions:
- PAT surged from ₹4.77 cr (FY24) to ₹6.47 cr (FY25) – 36% jump
- PAT margin expansion: 5.89% → 7.15% → 10.56% (H1 FY26) – very rapid
- Analyst Dilip Davda: “Sudden boost in bottom lines from FY24 onwards is surprising”
- Pre-IPO earnings inflation concern typical in SME space
- H1 FY26 annualized PAT would be ₹10.6 cr – 64% growth over FY25!
- Questions about sustainability of such high margins
- Operating in competitive B2B segment with thin margins
- Risk of profit normalization post-listing
- Aggressive Valuation – P/E 19-20x for B2B Manufacturer:
- Issue priced at P/E of 19-20x (FY25 basis)
- Analyst verdict: “Issue appears fully priced” (Dilip Davda)
- B2B manufacturers typically trade at lower multiples
- Premium valuation for 3-year-old SME company
- No listed peers for comparison (RHP states no comparable listed companies)
- Comparing to brands like Pintola unfair as they have consumer franchises
- Limited margin of safety at current pricing
- Downside risk if growth or margins disappoint
- Single Manufacturing Facility – Concentration Risk:
- All production from single 4,047 sq. meter facility in Mahuva
- No geographic diversification or backup facility
- Vulnerable to:
- Natural disasters, floods, earthquakes
- Fire, equipment breakdown, power outages
- Labor disputes, regulatory issues
- Contamination incidents
- Any disruption = complete production halt
- Business continuity risk
- Supply chain impact on 20+ country exports
- Reputation damage if quality issues arise
- Raw Material Volatility – Heavy Peanut Dependency:
- Peanut butter business entirely dependent on peanut prices
- Peanuts sourced from spot market – no long-term price hedging contracts
- Subject to agricultural commodity price fluctuations
- Monsoon dependency, crop yield variability
- Global peanut supply-demand dynamics
- Limited pricing power to pass on cost increases in B2B model
- Clients can resist price hikes or switch suppliers
- Margin compression risk during inflationary cycles
- Aflatoxin contamination risk in peanuts
- Weak Operating Cash Flows – Liquidity Concerns:
- Historical periods show inconsistent operating cash flows
- High working capital intensity in food manufacturing
- Inventory management critical
- Receivables from international clients create cash cycle delays
- May require continuous external funding for growth
- Cash generation capability questionable
- Dependent on external financing despite profitability
- Financial stress risk if expansion doesn’t translate to cash
- Promoter Exit via OFS – ₹7.92 Cr Partial Exit:
- Umeshbhai Kantilal Sheth (Whole-Time Director) selling 6,76,800 shares
- OFS of ₹7.92 cr (20% of issue size)
- Promoter taking money off the table at IPO itself
- Raises questions about confidence in future valuations
- Why exit now if business poised for explosive growth?
- Partial promoter exit at listing itself not ideal signal
- Only 80% proceeds go to company for genuine growth
Disclaimer: This information is based on publicly available sources including SEBI RHP filings, analyst reports, and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. Key concerns: Very new company (incorporated 2022, only 3 years old), flat GMP (₹0) indicating zero market interest, extreme B2B dependency (97% private label with no brand equity), sudden 36% profit jump raising sustainability questions, aggressive valuation (P/E 19-20x for B2B manufacturer), single facility concentration risk, promoter partial exit via ₹7.92 cr OFS at IPO itself. Analyst Dilip Davda verdict: “Issue appears fully priced.” No listed peers exist for comparison. SME investments carry higher risks than mainboard listings.
