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)
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)
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:
Management Team:
- Mr. Sanjay Kumar Baigani (Designation: Chairman & Managing Director)
- Mr. Anil Kumar Nahata (Designation: Director & CEO)
- 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 (%) |
|---|---|---|
| Promoters | ||
| 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 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
Knowledge Corner: (Click on the Link)
| 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 Email: info@oswalseeds.com Website: www.oswalseeds.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 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 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 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 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
