TBI Corn Ltd IPO: Review, Valuation, Date & GMP

TBI Corn Limited IPO  - Complete Overview

Established in 2000, TBI Corn Limited is a prominent player in the corn milling industry, manufacturing and exporting corn meal grits. 

The company, located in the Sangli district of Maharashtra, India, is ISO 9001:2015 and ISO 22000:2018 certified. TBI Corn specializes in producing high-quality corn/maize grits and related products.

The company offers a diverse range of products, including cleaned and fat-free corn grits/meal, corn flakes, stone-free broken maize, corn flour, and turmeric finger, all manufactured without chemical additives, preservatives, and GMO-free. 

TBI Corn's products have a global presence in the UAE, Bahrain, Qatar, Kuwait, Saudi Arabia, Oman, Yemen, Jordan, Israel, Liberia, Sri Lanka, Malaysia, Brunei, Vietnam, and South Korea, with plans to expand into Europe and the US.

As of 31 December 2023, the company generated revenue of Rs. 10,196.53 lakhs.

 

TBI Corn Limited IPO Overview

TBI Corn Limited IPO date is slated to be open for subscription from May 31, 2024, to June 4, 2024. This NSE SME IPO follows a Book Built Issue IPO.

TBI Corn Limited IPO price is fixed in the range of at Rs.90 to Rs.94 per share. 

The total issue size of this IPO amounts to Rs.44.94 Cr. The company has allocated 35% shares to retail investors, 50% to institutional and 15% to non-institutional investors.

 

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, TBI Corn Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and the total borrowing has also increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	9,511.50	12,162.04	4,317.63
Total Revenue	10,196.53	14,042.63	10,097.26
PAT	766.45	686.09	45.16
Net worth	4,067.70	2,677.81	683.24
Reserve & Surplus	2,729.94	1,677.49
Total Borrowings	5,137.13	6,352.82	2,549.48

 

Product-wise Revenue Break Up

(Amount in Lakhs)

Particulars	31 Dec. 2023	22 June 2022 to 31 Mar. 2023	1st Jan to 2022 to 21 Jun. 2022
Corn Grits	2,999.12	3,710.01	428.03
Corn Bran	2,332.56	2,959.02	463.13
Broken Maize	1,509.23	1,604.06	440.05
Processed Indian Yellow Maize	1,388.22	1,440.01	572.04
Corn Flour	501.26	456.03	156.59
Corn Flakes	712.44	804.18	98.89
Corn Germ	366.66	273.15	51.74
Other	295.12	301.06	172.49
Total	10,104.61	11,574.52	2,382.96

 

Geography-wise Revenue Break up

(Amount in Lakhs)

Particulars	31 Dec. 2023	22 June 2022 to 31 Mar. 2023	1st Jan to 2022 to 21 Jun. 2022
Exports Revenue	1,471.04	3,082.23	683.03
Indigence Revenue	8,633.57	8,465.29	1,699.93
Total Revenue	10,104.61	11,547.52	2,382.96

 

Country-wise Revenue Break up

(Amount in Lakhs)

Name of the Country	31 Dec. 2023	22 June 2022 to 31 Mar. 2023	1st Jan to 2022 to 21 Jun. 2022
Dubai	1121.59	1,712.00	174.04
Oman	106.56	276.00	0.15
Jordan	80.62	46.13	0.42
South Africa	8.82	27.00	0.98
Vietnam	2.81	776.02	305.84
Malaysia	100.41	144.05	199.92
Yemen	-	57.00	0.05
Brunei	13.32	9.02	0.61
Saudi Arebia	-	4.02	0.53
Qatar	-	12.87	0.35
Bahrain	-	8.01	0.14
Tanzania	-	10.11	-
Singapore	-	-	-
South Korea	-	-	-
UAE	20.45
West Africa	16.46
Total	1,471.04	3,082.23	683.03

State-wise Revenue Break up

(Amount in Lakhs)

Name of the States	31 Dec. 2023	22 June 2022 to 31 Mar. 2023	1st Jan to 2022 to 21 Jun. 2022
Gujarat	1,172.03	1,342.04	459.18
Telangana	65.24	160.00	20.00
Delhi	-	-	-
Maharashtra	6,156.81	5,947.02	803.98
Tamilnadu	427.24	139.08	73.92
Rajasthan	38.31	21.29	31.71
Karnataka	505.80	604.55	212.45
Assam	86.12	-	-
Madhya Pradesh	117.79	205.08	19.92
Andhra Pradesh	5.0	43.20	-
Uttar Pradesh	59.23	-	-
Bihar	-	-	-
Kerala	-	3.03	48.77
Uttrakhand	-	-	-
West Bengal	-	-	-
Haryana	-	-	-
Total	8,633.57	8,465.29	1,669.93

 

The Objective of the Issue

The Issue Proceeds from the Fresh Issue will be utilized to fulfill following objects:

1. Expansion of Existing Unit.

2. To Meet Incremental Working Capital Requirement.

3. General Corporate Purpose.

 

Peers of TBI Corn Limited IPO

According to the TBI Corn Limited DRHP, the company does not have exact comparable listed peer.

 

Evaluation

The IPO is priced within the range of Rs.90 to Rs.94 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 11,365.72 from the last year, the resulting P/E ratio is 0.008x.

Comparative Analysis with Listed Peers

The company does not have exact comparable listed peer.

 

 

 

IPO's Strengths

• Headquarters located in Sangli, a prominent maize market in India.

• Team possesses deep knowledge of corn price fluctuations.

• Strong customer relationships built on sharing cost-saving information.

• Consistently increasing trend in export sales.

• Unwavering commitment to delivering exceptional quality.

• Vertically integrated supply chain.

 

IPO's Weaknesses 

• The company is dependent on a few states; losing any of these large states could impact its business operations.

• An increase in raw material prices may adversely affect the company's business.

• The company operates under several statutory and regulatory permits, licenses, and approvals.

• Participation in competitive markets with low entry barriers may increase competition and materially adversely affect its business.

• The company faces foreign exchange risk, which may negatively impact its business.

 

IPO GMP Today 

The Latest GMP of TBI Corn Limited is Rs.61.

 

TBI Corn Limited IPO Timetable (Tentative)

TBI Corn Limited IPO is scheduled from May 31 to June 4, 2024, with allotment on June 5, refund initiation on June 6, and listing on June 7, 2024.

Events	Date
IPO Opening Date	May 31, 2024
IPO Closing Date	June 4, 2024
IPO Allotment Date	June 5, 2024
Refund initiation	June 6 2024
IPO Listing Date	June 7, 2024

 

TBI Corn Limited IPO Details

TBI Corn Limited IPO, with a face value of Rs.10 per share, opens on May 31 and closes on June 4, 2024, offering 4,780,800 shares at Rs.90 to Rs. 94 per share, with a lot size of 1200 shares, aiming to raise Rs.44.94 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 31, 2024 to June 4, 2024
Face Value	Rs.10 per share
Issue Price	Rs.90 to Rs. 94 per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 112,800
Issue Size	4,780,800 Shares (aggregating up to Rs.44.94 Cr)
Offer for sale	NA
Fresh issue	4,780,800 Shares (aggregating up to Rs.44.94 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

TBI Corn Limited IPO Lot Details 

For TBI Corn Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.112,800 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.225,600.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

TBI Corn Limited IPO Reservation 

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Promoters and Management of TBI Corn Limited

• Mr. Yogesh Laxman Rajhans 

• Mrs. Asha Laxman Rajhans

Pre-issue Promoter shareholding	76.65%
Post-issue Promoter shareholding	57.71%

 

TBI Corn Limited IPO Lead Managers

• Swastika Investmart Ltd

• Ekadrisht Capital Private Limited 

 

Dividend Policy

The Company has not paid any dividend in last three fiscal years.

 

 

 

Conclusion

The company operates in a competitive market with low entry barriers and has a strong global presence. It has been showing good performance in its revenue. However, the sudden rise in revenue in FY 23 has raised some concerns. Experienced investors might consider applying for the IPO for optimal gain.

 

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.

 

 

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.

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