Shree Oswal Seeds Ltd

Shree Oswal Seeds

About the Company:

Shree Oswal Seeds and Chemicals Limited an ISO 22000:2005 certified Company engaged in the business of production, processing and sale of different kind of agricultural seeds, maize and soyabean.

Company processes various kinds of seeds at its processing unit which is located at Neemuch, Madhya Pradesh.

At present, Company processes 5 varieties of wheat seed, 5 varieties of soya bean seed, 3 varieties of Mustard seed, 1 variety of black gram, 1 variety of corn seeds and 1 Variety of isabgol/psyllium. Majority of revenue is from the sale of wheat and soyabean seeds.

Company has a diversified customer base covering states like Bihar, Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Punjab.

Company mainly markets their product through different revenue channels which includes network of distributors, marketing agents and direct to consumers.

Revenue generated from wheat and Soyabean seed is as follows: (in Lakhs)

revenue generated

Liaising/Contracting with individual farmers is one of the major step in the production mechanism and Company has entered into contract farming only with the farmers of Madhya Pradesh.

Upto March 31, 2018 they have entered into contracts with 752 farmers, thereby giving Company access to around 3809 hectares of land.

Area of contract farming undertaken by the Company is as follows: (in Hectares)

contract farming

Subsidiaries of the Company:

Shree Oswal Psyllium Export India Limited is engaged in the business of manufacturing, processing and sale of psyllium husk and psyllium husk powder. The Subsidiary also produces by products of psyllium such as cattle feed.


Capacity Utilization for the Company:

capacity utilization

Management Team:

  1. Mr. Sanjay Kumar Baigani (Designation: Chairman & Managing Director)
  2. Mr. Anil Kumar Nahata (Designation: Director & CEO)
  3. Ms. Kiran Devi Begani (Designation: Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Anil Kumar Nahata 53,34,470 10.11
Sanjay Kumar Baigani 53,34,470 10.11


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake (%)
Anil Kumar Nahata 50% 34.99%
Sanjay Kumar Baigani 50% 34.99%
Promoter Group Entities           Negligible            Negligible
Total 100% 69.98%


Objectives of the Issue:

  • Purchase of New Plant & Machinery.
  • Funding the working capital requirements of the Company.
  • General corporate purposes.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Purchase of New Plant & Machinery 1.62
Working Capital Requirements 6.25
General Corporate Expenses 4.02
Net Proceeds 11.89 cr


Positives for the Company:

Distribution Network Across Various Geographies.

Presently, they have a number of distributors covering states like Madhya Pradesh, Rajasthan, Jharkhand, Uttar Pradesh, Bihar, Maharashtra, Punjab and Gujarat .

Expansion of Production Capacity.

Going forward Company is planning to expand its processing capacity to meet the increasing demand of its products. Company is planning to add additional machinery which will help to increase the production capacity to 24000 metric ton from present 14000 metric ton.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 22.54 33.50 58.60 38.87 43.00 78.18
Net Profit 0.12 0.17 0.30 0.32 1.02 2.29


Valuation of Peer Group Companies: (* Standalone)

Company Name Face Value EPS PE Ratio RoNW NAV
ShreeOswal Seeds Chemicals Ltd* 10 2.66 9.77 15.83% 10.64
Kaveri Seed Company Ltd 2 11.36 43.48 7.83% 145.14
Mangalam Seeds Ltd 10 5.98 16.67 13.27% 42.86
Monsanto India Limited 10 85.48 32.41 27.86% 306.79


IPO Details:

Details Info
Issue Opens on 7th June 2018
Issue Closes on:. 12th June 2018
Issue Price Rs.26
Face Value Rs.10
Minimum Lot 4000
Minimum Investment Rs.1,04,000
Issue Constitutes 30.02%
Issue Size Rs.11.89 cr
Market Cap Rs.39.6 cr
Listing at NSE SME
Equity Shares Offered (Fresh) 45,76,000
Equity Shares Prior to the Issue 1,06,69,000
Equity Shares after the Issue 1,52,47,000


Important Dates:

Finalization of Basis of Allotment on or Before 15th June 2018
Initiation of Refunds on or Before 18th June 2018
Credit of Equity Shares: on or Before 19th June 2018
Listing Date: on or Before 20th June 2018


IPO Valuation Parameters: (Consolidated)

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV) Debt/ Equity ratio
3.48 7.47 19.95% 10.78 1.06



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Company Contact Info:
ShreeOswal Seeds and Chemicals Limited
“Oswal House”, Opposite Balkavibairagi College,
Nasirabad Highway, Village Kanwati,
Neemuch- 458441, Madhya Pradesh, India.
Tel: +91 7423-297006
Fax: +91 7243-297511


IPO Registrar Info:
1st Floor Bharat Tin Works Building,
Opp Vasant Oasis,Makwana Road, Marol, Andheri
East, Mumbai 400059, Maharashtra, India
Tel: +91 22 62638200
Fax: +91 22 62638299


Lead Manager to the Issue:
406-408, Keshava Premises, Behind Family Court,
Bandra Kurla Complex, Bandra East,
Mumbai – 400 051
Tel: +91-22 6194 6700
Fax: +91-22 2659 8690