Vishwas Agri Seeds' IPO, valued at Rs 25.80 crores, offers 30 lakh fresh shares at a fixed price. Subscriptions open on March 21, 2024, and close on March 26, 2024. Allotment is expected by Wednesday, March 27, 2024. The IPO is scheduled to list on NSE SME with a tentative listing date set for Monday, April 1, 2024.
This offering signifies a significant opportunity for investors to participate in the company's growth and expansion plans within the agricultural sector, positioning Vishwas Agri Seeds for potential market success and development.
The IPO price of Vishwas Agri Seeds stands at ₹86 per share, with a minimum lot size set at 1600 shares. Retail investors need to invest a minimum of ₹137,600, while High Net Worth Individuals (HNI) are required to invest in 2 lots, totaling 3,200 shares, amounting to ₹275,200. This delineates the entry thresholds for both retail and HNI investors, ensuring equitable participation in the offering at their respective investment levels.
Isk Advisors Pvt Ltd serves as the book running lead manager for the Vishwas Agri Seeds IPO, with Bigshare Services Pvt Ltd appointed as the registrar. Sunflower Broking operates as the market maker for the IPO.
Refer RHP (Red Herring Prospectus) & DRHP (Draft Red Herring Prospectus) for more details.
The Offer comprises a Fresh Issue of up to ~3000000 Equity Shares, aggregating up to ₹ 25.8 crore by Company.
The Objects of the Net Issue is to raise funds for
Vishwas Agri Seeds IPO Details |
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IPO Date | March 21, 2024 to March 26, 2024 | ||||||||||
Listing Date | April 01, 2024 | ||||||||||
Face Value | ₹10 per share | ||||||||||
Price | ₹86 per share | ||||||||||
Lot Size | 1600 Shares | ||||||||||
Total Issue Size | ₹25.80 Cr | ||||||||||
Fresh Issue | 3,000,000 shares (aggregating up to ₹25.80 Cr) | ||||||||||
Offer for Sale | - | ||||||||||
Issue Type | Fixed Price Issue IPO | ||||||||||
Listing At | NSE SME | ||||||||||
Share holding pre issue | 7,000,000 | ||||||||||
Share holding post issue | 10,000,000 |
Vishwas Agri Seeds IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 1600 | ₹137,600 | ||||||||
Retail (Max) | 1 | 1600 | ₹137,600 | ||||||||
HNI (Min) | 2 | 3,200 | ₹275,200 |
Vishwas Agri Seeds IPO Timeline (Tentative Schedule) |
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IPO Open Date | Thursday, March 21, 2024 | ||||||||||
IPO Close Date | Tuesday, March 26, 2024 | ||||||||||
Basis of Allotment | Wednesday, March 27, 2024 | ||||||||||
Initiation of Refunds | Thursday, March 28, 2024 | ||||||||||
Credit of Shares to Demat | Thursday, March 28, 2024 | ||||||||||
Listing Date | Monday, April 1, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on March 26, 2024 |
Vishwas Agri Seeds IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | - | - | |||||||||
Market Maker Shares Offered | 152,000 (5.07%) | - | |||||||||
Other Shares Offered | 1,424,000 (47.47%) | - | |||||||||
Retail Shares Offered | 1,424,000 (47.47%) | - | |||||||||
Total Shares Offered | 3,000,000 (100%) | - |
Vishwas Agri Seeds IPO Promoter Holding |
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Share Holding Pre Issue | 100% | ||||||||||
Share Holding Post Issue | 70% |
Vishwas Agri Seeds IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
Vishwas Agri Seeds Limited is in the business of processing high quality seeds and supplying them to farmers via there established distribution network. Company sells its seeds under the brand name "Vishwas".
The company produced seeds for 151+ different field crops, vegetables and have the presence of in the state of Gujarat, Rajasthan & Madhya Pradesh.
The company majorly deals in good quality hybrid seeds. Company has setup a seed sorting & grading unit along with Warehouse & Cold storage facility at Ahmedabad, Gujarat. The unit has three warehouses, one cold storage, a seed processing unit and admin office building with a storing capacity of 4200 MT (Metric ton) seeds and cold storage facility to store 3000 MT (Metric ton) of seeds.
Product portfolio includes crop seeds for Groundnut, Soyabin, Wheat, Cumin, Green Gram, Black Gram Research Hybrid seeds for Cotton, Castol, Pearl Millet, Maize, hybrid vegitable seeds Chilli, Tomato, Brinjal, Watermelon, Sweet Corn, cabbage, Onion, Coriander Seeds, Fenugreek, Mustard, Lucern, Carrot, etc.
Also read: Enser Communications Limited IPO ANALYSIS
The Global Seed Market size is estimated at USD 66.85 billion in 2023, and is expected to reach USD 92.02 billion by 2028, growing at a CAGR of 6.60% during the forecast period (2023-2028).
Hybrid breeding technology stands as a dominant force in agriculture, spurred by surging demands across diverse sectors such as organic farming, animal feed, food production, and biofuels. The market's growth is fueled by the superior attributes of hybrid seeds, including heightened productivity, extensive adaptability, and robust resistance to both biotic and abiotic stresses. Notably, in cotton cultivation, hybrids yield 50% more than conventional varieties, highlighting their remarkable potential amidst environmental fluctuations.
Indian Seed industry is a sub-sector within Agri-input sector of Agriculture and allied industry. The seed industry in India size reached US$ 6.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 12.7 Billion by 2028, exhibiting a growth rate (CAGR) of 12.43% during 2023-2028.
India's burgeoning population and diverse agricultural landscapes drive market growth. The collaboration between public and private sectors, alongside technological advancements, aids the seed industry in combating environmental challenges and fostering agricultural commercialization.
Risk factors associated to the company:
High working capital requirements: Business requires a significant amount of working capital and a major portion of working capital is utilized towards accounts receivable and inventories. Accounts receivable collection cycle is long because of the nature of business and operations. Inability to maintain an optimal level of working capital required may impact operations.
Highly dependent on the sale of Groundnut seeds & Cumin seeds: Sale of Groundnut seeds is the largest contributor towards total revenue contributing approximately 50%-60% of the revenue. The Sale of Cumin seeds is the second largest contributor towards total revenue, approximately 25% holds from the same.
Seasonal Business: Business is seasonal in nature fluctuating operating results. It is influenced by the traditional crop season in India, production & demand of products affected by weather conditions, irrigation facilities, availability of credit to farmers and overall agricultural production.
Substantial portion of revenues has been dependent upon few customers and dealers: Top 5 customers and dealer contributed 22.57% of Total Revenue.
Rely on third-party farmers to assist in growing seeds: Seed production takes place through contractual arrangements with Seed Growing Farmers during every crop season. They provide these Seed Growing Farmers with the required farm inputs and closely manage their activities during all stages of seed production.
Competition from both organized and unorganized players: Competition occurs on quality of products, distribution network, pricing and timely delivery. Some competitors have longer industry experience and greater financial, technical and other resources, which may enable them to adopt faster in changing market scenario and remain competitive.
The company may require further equity issuance that will lead to dilution of equity and affecting market price: Growth of the company is dependent on having a strong balance sheet to support activities. In addition to the IPO Proceeds and internally generated cash flow, company may need other sources of financing to meet capital needs including entering into new debt facilities or raising additional equity in the capital markets.
Period Ended | 30th Sep 2023 | 31st Mar 2023 | 31st Mar 2022 | 31st Mar 2021 |
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Reserve of Surplus | 11.839 | 7.3289 | 3.9875 | 1.5081 |
Total Assets | 80.7195 | 53.5189 | 33.6293 | 20.9559 |
Total Borrowings | 28.6287 | 18.7788 | 16.9717 | 2.7508 |
Fixed Assets | 21.5309 | 14.7771 | 4.7164 | 0.6805 |
Cash | 0.1019 | 0.2287 | 0.0874 | 0.0723 |
Net Borrowing | 28.5268 | 18.5501 | 16.8843 | 12.6785 |
Revenue | 42.4603 | 65.3073 | 64.8558 | 53.8241 |
EBITDA | 6.8583 | 7.9094 | 4.3953 | 2.1909 |
PAT | 4.5101 | 5.3414 | 2.4794 | 1.163 |
EPS | 6.44 | 16.98 | 9.49 | 4.65 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 16.98 | ||||||||||
EPS Post IPO (Rs.) | 9.02 | ||||||||||
P/E Pre IPO | 5.06 | ||||||||||
P/E Post IPO | 9.53 | ||||||||||
ROE | 55.88% | ||||||||||
ROCE | 23.84% | ||||||||||
P/BV | 3.2 | ||||||||||
Debt/Equity | 3.73 | ||||||||||
RoNW | 23.84% |
Vishwas Agri Seeds Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Bombay Super Hybrid Seeds Ltd | 2 | 22.2% | 35% | 105 | 32.2 | 0.32 | 22.2% | ||||
Kaveri Seed Company Ltd. | 50.7 | 17.1% | 16.3% | 12.4 | 2.13 | 0 | 17.1% | ||||
Upsurge Seeds of Agriculture Ltd | 10.3 | 12.8% | 19.1% | 29.5 | 5.19 | 0.31 | 12.8% | ||||
Vishwas Agri Seeds Ltd. | 16.98 | 23.84% | 55.88% | 5.06 | 3.2 | 3.73 | 23.84% |
Vishwas Agri Seeds Limited
Near Toll Tax,
S. No. 460, Gangad Road, Bhayla
Ahmedabad, Bavla, Gujarat, India. - 382220
Phone: +91 6535709174
Email: cs@vishwasagriseeds.com
Website: http://www.vishwasagriseeds.com/
BigShare Services Pvt. Ltd.
1 st Floor, Bharat Tin Works Building, Makwana Road, Marol, Andheri East, Mumbai – 400 059
Tel No.: +91 – 22 – 62638200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Vishwas Agri Seeds Limited, specializing in high-quality seed processing for farmers, presents a compelling investment opportunity the Indian market is projected to grow with a CAGR of 12.43% and 6.60% globally from 2023 to 2028. Demonstrating a commitment to equity shareholders, the company delivers superior returns to equity over debt holders. Financially, Vishwas Agri Seeds exhibits robust growth, with EPS doubling from FY21 to FY22, reaching Rs. 17 in FY23, and PAT doubling annually to Rs. 5.34 Cr. in FY23, projected to rise to Rs. 9 Cr. in FY24 (TTM basis). Despite its SME IPO status posing potential liquidity challenges for retail investors, the attractive Post IPO P/E ratio compared to peers underscores the company's investment appeal for the medium to long term.
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