Penver Products Ltd

Penver Products

About the Company:

Penver Products Ltd is a diversified Seafood company engaged in the business of Processing and Exporting aquaculture and capture Fishery Products.

Company is present across various segments of the seafood value chain viz., farming, feed distribution, processing and overseas distribution.

Company’s diverse product range comprises of farm cultivated Litopenaeus Vannamei shrimp and varied capture fishery products such as squids, wild shrimps, octopus, cuttlefish and wide variety of fishes.

They cater to end consumers at various geographical locations worldwide, through food distribution and retailing channels primarily in the U.S.A, EU and Far East.

Company’s operations are strategically located on the western and eastern coasts of India ie Kerala and Andhra Pradesh.

Company’s Top 10 customers include names such as Chicken of the Sea Frozen Foods, Blue Sea Products LLC, Limson Trading Inc., Sunnyvale Sea Foods, Censea Inc., Pacific Coral Seafood Co Inc. and Arista Industries Inc.

 

Company’s Processing Facilities:

Company’s plant at Aroor, Kerala, is mainly focused on the processing of capture fishery products whilst the one located at Gudur, Andhra Pradesh is mainly focused on processing of aquaculture products.

The processing plant in Gudur has a total installed capacity of 10,560 MTPA and the processing plant in Aroor has a total installed capacity of 4,675 MTPA.

 

Company’s Installed Capacity & Capacity Utilization: (Last 3 Years)

* Commercial operations commenced in October 2015
** Company has discontinued operations at the leased facilities by March 2018

 

Company’s Farming Activities:

Penver Products Ltd is backward integrated through their own farming activities for aquaculture products, which are spread over 351.56 acres of leased land located in Andhra Pradesh.

Further, they have contracted farming arrangements with various farmers having 471.81 acres located in the aquaculture farming districts of Andhra Pradesh.

Company is also into the business of retailing shrimp feed and probiotics to farmers through their depots situated at various geographical locations such as Chillakur, Lokamudi, Undi and Eluru across Andhra Pradesh.

 

Company’s Distribution Arm (Blue Sea Products LLC)

Penver Products has forward integrated their operations by having a distribution arm through a Associate Company, Blue Sea Products, LLC in U.S.A.

Apart from being one of the major distributors for Penver Products, The distribution arm ie. Blue Sea Products, LLC also sources seafood products from various jurisdictions globally, for the purpose of distributing the same in U.S.A. This association allows the company to penetrate the U.S.A market.

 

Company’s Supply Chain Network:

Penver Products Ltd has a robust supply chain network comprising of their own fleet of 30 refrigerated and insulated trucks, cold storage facilities attached to their own plants with an aggregate total storage capacity of 2160 tons of finished goods and two ice plants for ensuring efficient handling of raw materials and finished goods.

 

Competition in the Business:

Company operates in a highly competitive market, where there are a large number of players in the organized and unorganized sectors.

Penver Products face competition from various domestic competitors such as Apex Frozen Foods Ltd, Zeal Aqua Ltd and Avanti Feeds Ltd, Devi Seafoods, Nekkanti Sea Foods Ltd & Godrej Agrovet Ltd (Feed Business)

 

Management Team:

  1. Mr. Philips Thomas (Designation: Chairman & Managing Director)
  2. Mr. Vinod Kumar K P (Designation: Whole-Time Director)
  3. Mr. Madhukrishna Ganta (Designation: Whole-Time Director)
  4. Mr. Abdul Kareem A (Designation: Whole-Time Director)

 

 

Positives For the Company:

Established Customer Relationships.

  • Penver Products export 100% of their farm-cultivated shrimps and capture fishery products to various countries across the world, mainly to U.S.A, EU and Far East.
  • Company majorly export to the markets of U.S.A, EU and Far East. With an operating history of nearly two decades in seafood business.Company has developed long-standing relationships with many of their main customers who are situated across the globe.
  • The past performance track record, market presence, product portfolio, distribution strength and quality consciousness has enabled the Company to penetrate newer markets and foster & nurture strong customer relationships.

 

Strong Distribution Business in USA.

  • Company’s ability to distribute their own products in the U.S.A. has enabled them to build a strong customer base.
  • Apart from their own distribution efforts, They have also been able to develop direct relationships with food distribution companies Chicken of the Sea Frozen Foods, Limson Trading Inc., Sunnyvale Sea Foods, Censea Inc., Pacific Coral Seafood Co Inc. and Arista Industries Inc.
  • Currently U.S.A is one of their key markets and derived 70.17% of the total revenue for Fiscal 2018 from U.S.A market.

 

Future Expansion Projects.

  • Keeping in view the overall industry growth trend and growing customer demands, Company intends to set up a new processing plant thereby enhancing their processing
    capabilities.
  • Currently the total installed capacity is 10,560 MTPA. Further, company intend to set up a new state of art facility adjacent to their existing processing facility in Gudur.
  • The new facility will have a total installed capacity of 11,520 MTPA of which installed capacity for Ready-to-Cook products would be 3,360 MTPA, high value ready-to-eat products would be 6,720 MTPA and breaded product line would be 1,440 MTPA.
  • With the augmentation of the new facility, the aggregate installed capacity at both the facilities in Gudur would aggregate to 22,080 MTPA.
  • The new facility at Gudur will have 100% income tax exemption for the first five years of operations and for the subsequent five years 70% of the income will be taxed.

 

Financials of the Company:

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 207.99 223.9 205.5 407.97 698.42
Net Profit 5.9 3.2 0.20 9.48 45.62

 

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Penver Products Ltd 10 9.22 TBA 30.40% 29.34
Avanti Feeds Ltd 2 98.31 19.06 45.10% 227.12
The Waterbase Limited 10 7.58 25.78 20.10% 36.12
Zeal Aqua Limited 10 9.96 52.61 10.23% 97.42
Apex Frozen Foods 10 26.63 18.35 24.87 96.74

 

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 to the Issue 5,34,03,640
Equity Shares after the Issue Will be Updated 

Also Read:  Guidelines for Investing in IPOs.

 

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)
9.22 TBA 30.40% 29.34

Also Read:  Questions to Ask Before You Buy a Stock?

 

Check IPO Allotment Status:

Karvy Website (Click on the below Link)

http://kosmic.karvy.com:81/ipotrack/

 

Find the List of Upcoming IPOs in 2019:

Upcoming IPOs in 2019 (Click on the below Link)

www.UpcomingIPOs-in-India-2019

 

Company Contact Info:
Penver Products Limited
Door No. AP 2/688, Industrial Estate,
Aroor, Kerala 688534, India
Tel: +91 478 2832204
Fax: +91 478 2874 298
Email: cs@penverproducts.com
Website: www.penverproducts.com

 

IPO Registrar Info:
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot No.31&32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222; Fax: +91 40 2343 1551
E-mail: penver.ipo@karvy.com
Website: www.karishma.karvy.com