Vandan Foods IPO Launches at Rs.115 on BSE SME Platform

Ahmedabad, Gujarat – Vandan Foods Limited announced its maiden public offering of 26.40 lakh equity shares (face value ₹10 each) at a price of Rs115 per share, aiming to raise ₹30.36 crore. The shares are proposed for listing on the BSE SME Platform.

Vandan Foods Limited is engaged in the production of Refined First Special Grade (FSG) Castor Oil and Castor De-Oil Cake at its modern manufacturing facility located in Dhinoj, Patan district, Gujarat. These products serve a wide range of industries including plastics, textiles, lubricants, cosmetics, and pharmaceuticals. Operating primarily on a business-to-business (B2B) model, the company sources raw castor seeds directly from farmers and agri-suppliers, with its distribution network extending across Gujarat, Rajasthan, Haryana, Delhi, Andhra Pradesh, Telangana, Bihar, and other regions.

Certified under ISO standards, Vandan Foods emphasizes stringent quality assurance by outsourcing material testing to third-party laboratories, ensuring consistency, safety, and compliance. Since its strategic transition into castor oil manufacturing in 2024, under the leadership of its current promoters, the company has rapidly expanded its operations and built a reliable, pan-India supplier and customer base.

The proceeds from the IPO will be utilized across multiple strategic areas. An amount of ₹3.00 crore, which constitutes 9.9% of the total issue size, will be used for the prepayment or repayment of borrowings. A sum of ₹8.29 crore, accounting for 27.3% of the proceeds, will be allocated towards capital expenditure for expanding the company’s manufacturing facility located in Dhinoj. Additionally, ₹8.57 crore, representing 28.2% of the issue, will be directed towards meeting the company’s working capital requirements. A further ₹7.51 crore, or 24.7% of the funds, is designated for general corporate purposes. The remaining balance will be utilised to cover the expenses related to the IPO process.

This capital infusion will enable the company to enhance its production capacity, streamline operations, and strengthen supply chain linkages across India and international markets.

Incorporated in 2015 and converted to a public limited company in 2023, Vandan Foods Limited began its journey in catering services and agro-commodity trading. In FY 2024, the company underwent a strategic transformation under the leadership of its current promoters and pivoted to manufacturing Refined First Special Grade (FSG) Castor Oil and Castor De-Oil Cake—products that are in growing demand across pharmaceutical, cosmetic, lubricants, polymer, and paint industries.

The company currently follows a B2B model, supplying high-quality castor products to domestic customers in Gujarat, Rajasthan, Haryana, Delhi, Telangana, Andhra Pradesh, and Bihar. Its manufacturing facilities are located at Dhinoj village in Patan district, equipped with robust infrastructure and third-party certified testing labs.

Vandan Foods is ISO-certified, and its stringent quality control measures ensure product consistency, safety, and regulatory compliance. By working directly with castor seed aggregators and farmer networks, the company is also ensuring traceability and supply stability, aligning with modern ESG expectations.

India is the largest producer of castor oil globally, contributing around 85% of global production. Castor oil is a critical raw material used across textiles, chemicals, lubricants, plastics, and pharmaceuticals due to its unique composition of ricinoleic acid. The global castor oil market was valued at USD 1.2 billion in 2024, with projections indicating a CAGR of over 4.5% till 2030.

With increasing demand for bio-based, renewable, and biodegradable inputs, castor oil is being positioned as a green chemical of the future. Vandan Foods, with its focused portfolio and strategic expansion, is well-poised to capitalize on this rising demand.

Kalpesh Thakkar, Promoter and Director of Vandan Foods, said:“This IPO marks a defining chapter in our journey. Our vision is to create a sustainable, scalable, and transparent supply chain for castor-based derivatives. The funds raised will allow us to expand capacity, optimize our working capital, and deepen our market footprint across India and overseas.”

Although the detailed financial results for FY 2024–25 will be disclosed post-listing, Vandan Foods Limited has already demonstrated strong indicators of growth and operational progress. In 2024, the company successfully transitioned its core operations from trading to manufacturing, marking a pivotal shift in its business model. Within its first year of manufacturing operations, it established a pan-India distribution network, enabling widespread market reach.

The company has followed an asset-light approach, choosing to outsource raw material testing to accredited laboratories, while strategically directing capital investments toward enhancing its core processing capacity. This model has allowed for scalability without compromising on quality or efficiency.

The transformation and strategic growth of Vandan Foods have been led by a committed promoter group—Mr. Kalpeshkumar Thakkar, Mr. Rakeshkumar Patel, Mr. Jitendra Patel, and Mrs. Jyotsana Patel—who collectively bring over a decade of experience in agro-commodities and continue to guide the company’s operational and strategic direction.

The promoters of Vandan Foods Limited—Mr. Kalpeshkumar Thakkar, Mr. Rakeshkumar Patel, Mr. Jitendra Patel, and Mrs. Jyotsana Patel—collectively held 100% of the company’s equity shares prior to the IPO. Following the successful completion of the IPO and allotment of 26.40 lakh new equity shares, the promoters’ collective shareholding is expected to be diluted to approximately 73.07%, while the remaining 26.93% will be held by public shareholders. This dilution reflects the company’s commitment to broadening its ownership base while retaining strong promoter control and strategic direction.