About the Company:
Company is one of the integrated producer and exporter of shelf stable quality aquaculture products. They supply
ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors spread across the developed markets of USA, UK and various European countries. Their output majorly comprises of variants of processed Vannamei shrimp (White shrimp) and are sold under the brands owned by their customers and also through company’s brands namely Bay fresh, Bay Harvest and Bay Premium.
For over two decades, Company’s promoters have been associated with aquaculture business in Andhra Pradesh.Company has leased a shrimp processing facility and commenced operations in the year 1995 after which they have set-up their own modern shrimp processing facility in the year 2004.
Company’s processing facility is located at Kakinada, Andhra Pradesh with a capacity to process approximately over 9,240 MTPA of finished products and an additional non-exclusive pre-processing and processing arrangement at a facility owned by Royale Marine Impex Private Limited located at Bapatla, Andhra Pradesh, for a capacity to process around 3,000 MTPA of finished products.The processing facilities are supplemented by cold storage facilities located at Kakinada and Bapatla. Along with this, to further assuage the operations, They have their own fleet of vehicles with freezing capabilities.
Company has numerous ponds situated in a total extent of 1,337.69 acres with 105.78 acres of owned land and
1,231.91 acres of leased land. This farming at their ponds allows them to procure raw materials and ensures that company’s business of shrimp processing is cost-effective.
They have long-standing relationships with numerous global customers.Their entire produce is being exported to countries such as USA, UK and various European countries. Some of their major customers are Chicken of the Sea Frozen Foods (USA), Ocean World Ventures LLC (USA) and Pacific Sea Food Group (USA).
Company exports 100% of their products to countries across the world, such as USA, UK and European countries.
Objectives of the Issue:
- Setting up a new shrimp processing unit with a proposed capacity of 20,000 MTPA at East Godavari District, Andhra Pradesh.
- General Corporate purposes.
Management Team of the Company:
- Karuturi Satyanarayana Murthy (Designation: Chairman and Managing Director)
- Karuturi Subrahmanya Chowdary (Designation: Executive Director)
- Karuturi Neelima Devi (Designation:Whole-Time Director)
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Competitive Strengths Of the Company:
- Experienced management Team.
- Economies of scale on account of integrated operations.
- Strategically located processing plant.
- Established Customer Relationships.
- Focus on quality control measures and research &development initiatives.
TOP Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Karuturi Satyanarayana Murthy | 9,600,000 | 40.00 |
| 2. | Karuturi Subrahmanya Chowdary | 9,600,000 | 40.00 |
| 3. | Karuturi Padmavathi | 4,704,000 | 19.60 |
| 4. | Karuturi Neelima Devi | 24,000 | 0.10 |
| 5. | Sankuratri Ravi Kanth | 24,000 | 0.10 |
| 6. | Sankuratri Anitha Devi | 24,000 | 0.10 |
| 7. | Vallepalli Hanumantha Rao | 24,000 | 0.10 |
| Total | 24,000,000 | 100% |
Positives for the Company:
- Economies of scale on account of integrated operations
- Strategically located processing plant.
- Established Customer Relationships. (Long Term contract)
- Expanding sales and distribution network in USA & Europe.
- Plans to increase our presence in emerging markets such as Middle East, Africa and Russian markets.
- Clientele consists of 100% international customers ie. USA,UK and various European countries.
- Shrimp exports are expected to touch $ 7 billion by FY21 (Current $3.1 billion)
- Planning Massive Expansion Project. (Current Capacity 9240 MTPA, New Addition 20,000 MTPA)
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 255.48 | 514.57 | 604.37 | 608.26 | 709.68 |
| Net Profit | 9.41 | 13.42 | 18.57 | 19.70 | 24.92 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd August 2017 |
| Isue Closes on:. | 24th August 2017 |
| Issue Price | Rs.171 – Rs.175 |
| Face Value | Rs.10 |
| Minimum Lot | 80 shares |
| Minimum Investment | Rs.14000 |
| Equity Shares Offered | 87,00,000 |
| Equity Shares Prior | 2,40,00,000 |
| Equity Shares after the issue | 3,12,50,000 |
| Issue Size | Rs.152 cr |
| Issue Constitutes | 27.84% |
| Market Cap | Rs.546.87 cr |
| Listing at | NSE & BSE |
Important Dates:
| Finalization of Basis of Allotment | On or about 30th August, 2017 |
| Initiation of Refunds | On or about 01st September 2017 |
| Credit of Equity Shares: | On or about 01st September 2017 |
| Listing Date: | On or about 04th September 2017 |
