About the Company:
Narmada Bio Chem Ltd is engaged in the business of manufacturing various types of chemical and organic fertilizers & also trades in chemical compounds and organic fertilizers.
Company’s product portfolio includes different types of chemical and organic fertilizers viz. various grades of NPK, Single Super Phosphate, organic manure, PROM, mix micro nutrients, water soluble fertilizers, soil conditioners, etc.
Company currently has four production facilities: Unit I & II at Changodar, Ahmedabad, Unit III at Malarpura, Kheda and Unit IV at Kalyangadh, Bavla, Ahmedabad.
As at March 31, 2018, these four facilities have a combined installed capacity of around 3,02,000 MT per Annum.
Company has a distribution network of more than 750 distributors spread over 10 states.
Company’s Products:
Company’s product profile comprises of nearly 19 different varieties of fertilisers and manures, available in all forms i.e. powdered, granular, etc. The manufactured products can be categorized into Organic fertilizers and Chemical Fertilisers.
Company sells the products under brand names like Narmada PROM, Bio-Gold, Himalay, Narmada Samruddhi, Crowin, Magwin.
Government’s Focus on Organic Fertilizers:
The demand of organic fertilizers is increasing among the farmers. The government has also initiated various steps towards measured use of chemical fertilizers and increase in the use of organic fertilizers to make agriculture more sustainable.
Various government schemes such as Soil Health Mission, National Program for Organic Production, etc, have been rolled out to give boost to organic farming.
Narmada Biochem’s Focus on Organic Fertilizers:
Since past few years, company has been majorly focusing on production of organic fertilizers and have been successfully able to establish as one of the top organized
players in organic fertilizer segment.
One of the key product of Narmada Biochem Ltd is 100% organic Phosphate Rich Organic Manure (PROM).
Narmada PROM has gained the trust and confidence of farmers in various states with its effective results.
This advantage has further given company, the confidence to effectively take their organic fertilizers across the country with a near monopoly of Narmada PROM, being noticed for its sustained quality, high yield production, and increased crop nutrition.
During FY 2017, Narmada Biochem had around share of 58% in the overall production of PROM in India.
Company’s Expansion into Pesticide Market:
To enhance company’s product base, Narmada Biochem is exploring to enter into pesticides markets as well.
Company has entered into marketing agreement with few parties wherein such parties will manufacture pesticides for the company which shall be marketed under Narmada
brand.
Competitors for the Company:
Narmada Biochem operates in a competitive atmosphere. Present industry scenario is very competitive. With increase in demand, players have also increased.
Among listed Companies, they face competition from listed companies like Rama Phosphates Limited, Khaitan Chemicals & Fertilizers Limited, etc
Management Team:
- Mr. Dineshbhai Dhirubhai Patel (Designation: Chairman and Managing Director)
- Ms. Bhavnaben Dineshbhai Patel (Designation: Executive Director)
- Mr. Sanjaybhai Dhirubhai Kumbhani (Designation: Additional Executive Director)
Positives for the Company:
Expanding Domestic presence and Exploring International Markets.
At present, company has a widespread distribution network of more than 750 distributors spread over 10 states.
Narmada Biochem aims to expand the domestic presence by exploring newer domestic geographies such as North eastern and eastern regions. Company also intends to increase the distribution network so as to enhance their domestic presence.
To expand the business further, Company intends to explore international markets as well. Company has already taken steps in this direction and are in the process of exporting their organic products to East African countries.
Further company has also registered themselves with Walmart for establishing an international customer base for the Company.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 152.51 | 178.28 | 236.98 | 177.64 | 173.21 |
| Net Profit | 8.4 | 11.2 | 13.06 | 7.58 | 12.3 |
Also Read: Important Tips For Investing in an IPO.
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Narmada Bio-chem Ltd | 10 | 7.81 | TBA | 12.11% | 64.50 |
| Rama Phosphates Ltd | 10 | 3.06 | 28.45 | 4.02% | 75.90 |
| Khaitan Chemicals And Fertilizers Ltd |
1 | 0.17 | 65.59 | 1.26% | 13.44 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Will be Updated |
| Issue Closes on:. | Will be Updated |
| Issue Price | Will be Updated |
| Face Value | Rs.10 |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior | 1,57,40,959 |
| Equity Shares after the issue | 2,11,40,959 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 7.81 | Will be Updated | 12.11% | 64.50 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| Narmada Bio-chem Limited “Narmada House”, Plot No. 252, TP No. 50, Near Sun Builders, Sindhu Bhavan Road, Bodakdev, Ahmedabad- 380054, Gujarat Tel No.: 079-29705173/74/75 E-mail: roc@nbclindia.com Website: www.nbclindia.com |
Also Read: Questions to Ask Before You Buy a Stock?
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda Hyderabad – 500 032, India Tel: (91 40) 6716 2222 Investor E-mail: narmadabiochem.ipo@karvy.com Website: http://www.karisma.karvy.com |
| Lead Manager to the Issue: |
|---|
| Pantomath Capital Advisors Private Limited 406-408, Keshava Premises Bandra Kurla Complex, Bandra East Mumbai – 400 051 Tel: +91 22 6194 6700 Fax: +91 22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
