Vishwas Agri Seeds IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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

  • Capital Expenditure
    • i). To Furnish the Corporate Office building
    • ii). To purchase equipment for setting up Seed Testing laboratory
    • iii). To set-up Greenhouse (Fan-Pad System)
    • iv). To install Roof Top Solar Monocrystalline Panels (129.6KW)
  • Additional Working Capital Requirement
  • General Corporate Purpose

Vishwas Agri Seeds IPO Details

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

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)

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

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

Share Holding Pre Issue 100%
Share Holding Post Issue 70%

Vishwas Agri Seeds IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About Vishwas Agri Seeds Limited

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.

Vishwas Agri Seeds Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 30th Sep 2023 31st Mar 2023 31st Mar 2022 31st Mar 2021
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

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

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 Contact Details

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
Websitehttp://www.vishwasagriseeds.com/

Vishwas Agri Seeds IPO Registrar and Lead Manager(s)

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 IPO Review

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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