About the Company:
Company is in the business of processing of non-basmati rice and basmati rice in India. They are one of the largest processors of non-basmati rice with a milling capacity of 350 Metric tons per day in the State of Jharkhand.
They process varieties of rice with the help of state of the art plant and machinery of International Standards i.e. Automatic Ultra Modern State of Art Buhler’s Swiss Technology Rice Mill.
Company had started commercial production in November, 2013. Today,Company is a processor and supplier of the varieties of rice like Long Grain, Medium Grain, Short Grain, Minicut, Sharbati, Banskati, Swarna, Sonam, Katarni and Sonachur / Govindbhog etc.
The non-basmati rice is processed at company’s processing plant located in the village Bandheya, Piska Nagri, Ranchi in the State of Jharkhand in India. The State of Jharkhand is considered as the Rice Bowl of India producing one of the best qualities of rice.
Company has established an Ultra Modern Highly Automated Continuous Buhler’s Swiss Technology Paddy Processing & Rice Milling Plant with a installed capacity of 16 Tones per hour.Company has established themselves as one of the Industry Leader in a short span of time with a storage capacity of 25,000 Metric tons and milling capacity of 1,26,000 Metric tons per year.
Company’s brands ‘BABA’, ‘PANCHAKANYA’, ‘SINGHAM’ and MIDDU BHAI’ are well accepted for their quality and standard in the market they operate across Eastern India.
With quality products and regular supply,They have earned a customer base across Eastern Indian States namely Jharkhand, Bihar, Odisha and West Bengal. The customers are wholesalers as well as retailers, which reflects the acceptability of the products offered by them. They process all types of non-basmati rice for all sections of the society, and the same is well accepted by their target customers.
Company is backed by a strong infrastructural base, which is well equipped with latest technology, advance machines and equipment’s which assist them in maintaining the quality and quantity of the rice. They have a strong focus on manufacturing process and have a full-fledged quality testing laboratory and well qualified & experienced personnel.
Company has plans to expand in other regions like Delhi NCR, Rajasthan and Haryana and also targeting for export.
In Non-Basmati segment, there is no national player or any brand that cater the whole of India. National Players like KRBL, LT Foods, Kohinor etc. are in Basmati Rice segment and they compete in that segment only. In Non-Basmati segment, regional units / brands have competition among themselves.
In Eastern Region they are the largest manufacturer with only mill to process all varieties of rice. Burdwan, West Bengal, is a hub for rice but mostly mills are traditional and smaller in size.
Objectives of the Issue:
- The Fresh Issue
- The objects to the Net Proceeds of the Fresh Issue is to meet Working Capital requirement.
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Gyan Prakash Sahu | 28,24,530 | 22.36% |
| 2. | Yogesh Kumar Sahu | 26,16,204 | 20.71% |
| 3. | Sudhir Prasad Sahu (HUF) | 21,45,966 | 16.99% |
| 4. | Ekta Sahu | 12,86,781 | 10.19% |
| 5. | Binita Sahu | 10,75,685 | 8.51% |
| 6. | Krishna Devi | 10,57,500 | 8.37% |
| 7. | Yogesh Kumar Sahu (HUF) | 6,24,347 | 4.94% |
| 8. | Gyan Prakash Sahu (HUF) | 6,16,295 | 4.88% |
| 9. | Sudhir Prasad Sahu | 3,85,663 | 3.05% |
| Total | 1,26,32,971 | 100% |
Management Team:
- Mr. Yogesh Kumar Sahu (Designation: Chairman and Managing Director)
- Mr. Gyan Prakash Sahu (Designation: Whole-time Director)
- Mr. Rajesh Agrawal (Designation: Executive Director & CFO)
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Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 0.056 | 24.21 | 79.02 | 81.03 | 82.10 |
| Net Profit | (-0.043) | (-1.60) | 0.88 | 0.86 | 1.02 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 14th September 2017 |
| Isue Closes on:. | 18th September 2017 |
| Issue Price | Rs.55 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,10,000 |
| Issue Constitutes | 26.45% |
| Issue Size | Rs.19.25 cr |
| Market Cap | Rs.72.78 cr |
| Listing at | NSE SME |
| Equity Shares Offered (OFS + Fresh) | 35,00,000 |
| Equity Shares Prior | 1,26,32,971 |
| Equity Shares after the issue | 1,32,32,971 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.81 | 67.90 | 7.43% | 10.95 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Avoid | NA | 0% |
