Magson Retail and Distribution

June 2023 IPO - INR 65 - Aggregating upto INR 13.75 Crores.
The Company is in the retail business of selling frozen food, gourmet food products and imported food products. The Company operates the retail stores through its own stores, jointly own stores and franchise model under it’s brand name “MagSon”. The company also has distribution business verticle of food products to various other vendors. Further the Company also runs a separate chocolate store which is operated under brand name “My Chocolate World”.

We have availed unsecured loans from our Promoter Directors, as on March 31, 2023 of ₹116.45 lakhs and which may be recalled at any time.
The Company has allotted 2,36,000 equity shares having face value of Rs. 10 each at a issue price of Rs. 65 which includes premium of Rs. 55 per equity share to Mr. Himanshu Patel who is non‐promoter, public investor aggregating to Rs. 153.40 Lakhs on March 03, 2023.
- The said proceeds were utilized towards the repayment of unsecured loan ₹ 97 Lakhs and ₹56.40 were utilized towards the repayment to trade creditors. The said issue price of Rs. 65 was derived from valuation report given by registered valuer Ms. Vanita Agarwal.

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In our own stores we get margin for distribution business plus retail margin in distribution business. In distribution business we get margin only for distribution business and sell it in own stores, franchisee stores and in future we are planning to sell to other stores under distribution business. Margin are little more in products packed in our own brand name.

By 2026, MagSon plans to add 25 new stores in the stable. These stores will come up in different parts of Gujarat, Madhya Pradesh, Rajasthan, and Maharashtra, where the brand is already currently operational and has existing stores. Most of these stores will operate under the franchise/shareholder model followed by the company since it turned public. “We estimate that our turnover will touch around Rs. 120 crore in another two years from now. We are working on it in a very focused way and we will achieve our targets,” signs of Francis.