Aelea Commodities Ltd IPO: Review, Valuation, Date & GMP

Aelea Commodities Limited IPO - Complete Overview

Aelea Commodities Limited IPO announced by Aelea Commodities Limited was founded in 2018 and is a trade company for agricultural goods. The company's primary activities are cashew processing and trading. In addition, the corporation sells additional products like wheat, rice, soybean, sugar, and pulses. The organization buys Raw Cashew Nuts (RCN) from Senegal, Cote d'Ivoire, Burkina Faso, Tanzania, Benin, and Tanzania, among other African countries. Furthermore, it deals in sugar mill byproducts like bagasse.

The clientele of the organization are located in Mumbai, Gujrat, Rajasthan, Karnataka, etc. The majority of clients are located in Sri Lanka and Dubai worldwide. The company is establishing a second processing facility in the Taluka region of Surat, Gujarat, in addition to its current facility in Surat, Gujarat.

By the end of 2023, the business will have 48 permanent workers spread throughout various departments. The company employed 135 people in total as of March 31, 2024. 

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 12, 2024. Let's take a closer look at the IPO's offerings below.

Aelea Commodities Limited IPO Overview

Aelea Commodities IPO is an SME book-built issue of Rs.51 crore with a wholly Fresh Issue of 53.69 lac Shares (amounting to Rs.51crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 12, 2024, and conclude on July 16, 2024. The anticipated listing date for the IPO is Monday, July 22, 2024, and will be held on the BSE and SME. The price band of each Share is Rs.91 to Rs.95.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

Aelea Commodities Limited's revenue increased by 31.2%, while profit after tax (PAT) increased by 539.22% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending December 31, 2023.

• The total revenue of the company is Rs.8,420.48 lac.

• The net worth of the company is Rs.2,296.07 lac

• The company's EBITDA is Rs.1,465.39 lac.

• The total assets of the company is Rs.11,017.11 lac.

• The total Liabilities of the company is Rs.6,753.31 lac.
  
  

(Amount in Lacs)

Period	31 May 2024	31 Mar 2024	31 Mar 2023
Total Assets	11,641.28	10,653.47	9,876.85
Total Revenue	2,758.47	14,450.77	11,014.44
PAT	280.36	1,222.32	191.22
Net worth	4,875.32	4,592.89	3,383.00
Reserve & Surplus	3,375.32	3,092.89	3,351.00
Total Borrowings	4,120.36	4,077.32	3,327.40

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash flow in multiple Activities	31 Dec 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	957.93	371.61	497.82
Net Cash Flow Investing Activities	43.03	817.01	1,393.11
Net Cash Flow Financing Activities	963.05	508.06	878.17

 

Industry-wise Revenue Breakdown

(Values in Lacs)

Product-wise Revenue Breakdown

(Values in lac)

 

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Establishing a new manufacturing facility and placing equipment and plants there.

• Acquiring machinery and plant at a current industrial facility

• Corporate Goals in General.
  
  

Peers Of Aelea Commodities Limited

(As of March 31, 2023)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Krishival Food Limited	10	4.57	49.89
Prospect Commodities Limited	10	4.22	41.46

 

Evaluation

The price of this IPO is Rs.91 to Rs.95 for each Share.

Evaluation Of P/E Ratio

Considering the Financial Year that concluded on 31 March 2023, with EPS of Rs.1.27 from the last year, the resulting P/E ratio is 74.80x.

Considering the weighted EPS of Rs.4.23 for the last three years, the P/E ratio is 22.45x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 45.68x.

Particulars	P/E Ratio
Highest	49.89
Lowest	41.46
Average	45.68

In simple words, the P/E ratio of the Aelea Commodities Limited-IPO (74.80x and 22.45x) when taken average becomes 48.63 which is higher than the industry’s average P/E ratio i.e. 45.68x. Hence the company currently has a little high valuation as compared with its industry average so the price band seems justified for these shares. Investors might not have to pay an overpriced amount considering its P/E ratio to buy Shares in its IPO.

IPO's Strengths

• The promoters of the Organization have played a crucial role in the steady improvement of the Company's performance and possess a substantial depth of knowledge in the commodity trading industry.

• Current client interaction.

• Well-defined protocols and mechanisms.

• To take advantage of business prospects, the company will increase its current production capabilities.

• Improving the effectiveness of operations.

• Maintain its innovation-focused approach as it expands its clientele.

• Expanding its consumer base by going into new regions and building enduring connections.

• Purchasing raw materials ahead of time to control price changes and market demands.
  
  

IPO’s Weaknesses

• The company is currently facing legal action in several areas, the result of which could have a negative impact on its operations, reputation, and business.

• Its business may suffer as a result of its heavy reliance on specific industries for a sizable amount of its sales.

• A sizeable portion of its overall income and raw material supply comes from the top ten users of its product and the top ten raw material suppliers. They don't have a long-term contract with either the supplier or the customer. Its earnings and profitability could be negatively impacted by any of the following: losing a customer, having a customer place fewer orders, or a supplier experiencing an interruption in raw material supply.

• There are several steps involved in processing raw cashew nuts, and if they break throughout the process, the sale price will be lower.

• The prices at which they are able to trade its commodities products are primarily determined by the prices that are in the market.

• Both its current and planned manufacturing facilities are concentrated in Surat, Gujarat, and its inability to operate and expand its business in this area could negatively impact its operations, cash flows, financial condition, and prospects for future growth.

 

 

IPO GMP Today

The Latest GMP of Aelea Commodities Limited IPO is Rs.77.

Aelea Commodities Limited IPO timetable (Tentative)

The IPO is scheduled from July 12 to July 16, 2024, with allotment on July 18, refund initiation on July 19, and listing on July 22, 2024.

Events	Date
IPO Opening Date	July 12, 2024
IPO Closing Date	July 16, 2024
IPO Allotment Date	July 18, 2024
Refund initiation	July 19, 2024
IPO Listing Date	July 22, 2024

 

Aelea Commodities Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 12, close on 16 July, and offer a total issue size of 5,368,800 Shares (aggregating up to Rs.51.00 Cr) comprising a wholly fresh issue size of 5,368,800 Shares of Rs.51 Cr.

IPO Opening & Closing Date	July 12, 2024 to July 16, 2024
Face Value	Rs.10 per Share
Issue Size	5,368,800 Shares of Rs.51 Cr.
Offer for Sale	-
Fresh Issue	5,368,800 Shares of Rs.51 Cr.
Listing at	BSE, SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Aelea Commodities Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.114000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.228000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Aelea Commodities Limited IPO Reservation 

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

 

Promoters And Management Of Aelea Commodities Limited IPO

• Hozefa S Jawadwala

• Satyanarayan Patro

• Ashok Patel

• Firoz Gulamhusein Hathiyari

• Rashida Hozefa Jawadwala

• Sonali Malla

• Sumita A Patel

• Farida Firoz Hathiyari
  
  

Pre-issue Promoter shareholding	86.45%
Post-issue Promoter shareholding	63.66%

 

Aelea Commodities Limited IPO Lead Managers

• Ekadrisht Capital Private Limited
  
  

Dividend Policy

The company has not paid any dividends in the last three years.

Conclusion

The company’s net worth, total assets, and liabilities have increased and EBITDA also rose in the last few financial years. The company desires to use the Net Proceeds from the Issue to establish a new manufacturing facility and place equipment and plants there, acquire machinery and plant at a current industrial facility, & Corporate Goals in General.
To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!

Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account & Start Investing Now

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.