About the Company:
Shri Venkatesh Refineries Ltd is primarily engaged in the business of refining and preservation of Edible oils mainly soyabean oil and cotton seed oil.
Company is engaged in the refining of edible oil in Maharashtra region selling the edible oil under the brand name “Rich Soya”.
Company had started commercial production in 2004 and within a short span of time have developed “RICH SOYA” as a prominent name among edible oil producers specifically in the north Maharashtra region.
The business process involves purchase of the raw oil, then refining, packaging and selling of the edible oil.
At present Company has a refining capacity of almost 36000 tons. Apart from the refining of edible oil, company is also engaged in the business of trading of edible oil mainly soyabean oil, cotton seed oil and palm oil.
Apart from the selling of the refined oil and trading of the crude oil the company also sells the by-products which are generated during the refining process and have a commercial value.
The major by-products sold by the company are Soya Lecithin, Soya Fatty Acid, Soya Acid oil and Sopa.
Procurement of Raw materials:
The location of factory gives company the competitive edge over other players in terms of procurement and availability of raw material.
At present, Company has set up mechanisms for direct procurement of the raw material from the mills. All the raw material procured by the company is passed through the quality checks and various quality parameters.
Company is in the following lines of business:
- Refining of crude Edible oil to produce refined Soyabean Oil and Cotton Seed Oil.
- Trading of crude Edible and refined oil (Soyabean Oil, Cotton Seed Oil, Palm Oil, Sunflower Oil)
Manufacturing and Storage capabilities.
Company’s manufacturing facility at Jalgaon, Maharashtra has the ability to refine versatile range of products.
Company believe that this large-scale and versatile manufacturing infrastructure gives company significant advantage over other unorganized players in the industry and allows to compete more effectively with organized manufacturers in this sector.
Company has a total storing capacity of around 6000MT which includes tanks for storing refined oils.
Company’s Capacity and Capacity Utilization:
Company’s Distribution Network:
Company has established network spread across the state of Maharashtra catered by our over 140 dealers and distributors, distributing company’s products throughout the state.
These agents then distribute the products to the numerous retailers spread across the length and breadth of Maharashtra. Company has a strong distribution network, going ahead company will further spread the area of operations.
Solar Power Generation (Captive Consumption)
The company has taken step in the field of energy conservation and as part of their energy conservation policy the company has installed Solar Panels of 650KWH at the factory premises. The Electricity produces by the solar system installed are used by the company at its Factory only.
Competitors in the Business:
Company’s main competitors are Gemini cooking oil, Soya Drop soyabean oil, Parivar soya oil (Deesan Agro-tech Private Limited), Murli refined oil (Maharashtra Oil Extractions Private Limited) and Star soyabean oil and some other small and mid-sized companies and entities.
Management Team:
- Mr. Dinesh Ganapati Kabre (Designation: Chairman cum Managing Director)
- Mr. Anil Ganpati Kabre (Designation: Whole-Time Director)
Objectives of the Issue:
Fresh Issue: (Rs. 11.71 cr)
- To meet Working Capital requirements
- General Corporate Purpose
- To meet issue expenses.
Positives for the Company:
Plans to Increase manufacturing capacities in line with demand.
- Company’s refining capacities were increased from 17310 tons in FY 2018 to 36000 Tons in FY 2019. Company intends to keep on adding capacities to meet the increasing demand for products.
Plans to Increase geographical presence.
- Company is currently having presence in Maharashtra and Madhya Pradesh and most of company’s business and distribution network is also located in these areas.
- Going forward company plans to establish presence in the other regions also. Company’s emphasis is on expanding the scale of operations as well as growing the supply chain network, which will provide attractive opportunities to grow the client base and revenues.
Recently Expanded the Capacity.
- During the year 2019, Company has expanded the refining capacity from 17310 tons to 36000 tons with a view towards expanding the scale of operations and increasing the market presence.
- Company has a well-established network spread across Maharashtra catered by distributors, distributing company’s products through different points of presence.
- These agents then distribute the products to numerous retailers spread across the state.Company intends to engage more distributors to increase the product visibility by our continuous brand building activities through various incentives and promotional schemes.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 132.4 | 226.9 | 235.5 | 336.9 |
| Net Profit | 0.58 | 1.26 | 2.20 | 3.50 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Gokul Agro Resources Ltd | 2 | 1.09 | 20.23 | 5.35% | 20.38 |
| BCL Industries Ltd | 10 | 13.58 | 8.45 | 11.93% | 113.81 |
| Vijay Solvex Ltd | 10 | 64.10 | 14.81 | 13.99% | 458.24 |
| Ajanta Soya Ltd | 10 | 6.09 | 13.10 | 18.12% | 33.61 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th September 2021 |
| Issue Closes on:. | 1st October 2021 |
| Issue Price | Rs.40 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 Shares |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 28.39% |
| Issue Size | Rs.11.71 cr |
| Market Cap | Rs.44.23 cr |
| Listing at | BSE SME |
| Equity Shares offered (Fresh) | 29,28,000 |
| Equity Shares Prior to the Issue | 81,31,664 |
| Equity Shares after the issue | 1,10,59,664 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 6th October 2021 |
| Initiation of Refunds | on or Before 8th October 2021 |
| Credit of Equity Shares: | on or Before 8th October 2021 |
| Listing Date: | on or Before 11th October 2021 |
| Company Contact Info: |
|---|
| Shri Venkatesh Refineries Ltd GAT NO. 16, Umarde, Erandol, Jalgaon, Maharashtra, 425109, India. Tel No: +91-02588-244452; E-mail info@richsoya.in; Website: www.richsoya.in |
| IPO Registrar Info: |
|---|
| Purva Sharegistry (India) Pvt. Ltd. Address: – Unit No. 9, Shiv Shakti, Industrial Estate, J. R. Boricha Marg, Lower Parel East, Mumbai-400011, Maharashtra, India Tel No.: +91-022-23018261 Fax No.: +91-022-23012517 Email: support@purvashare.com Website: www.purvashare.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904,A Wing, Naman Midtown, SenapatiBapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, India Tel. No.: +91- 022- 49060000 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
