Vishwas Agri Seeds Ltd IPO: Review, Valuation, Date & GMP

Vishwas Agri Seeds Limited IPO - Complete Overview

Established in 2013, Vishwas Agri Seeds Limited operates within the realm of processing and supplying high-quality seeds to farmers through its extensive distribution network. 

Marketed under the renowned brand name "Vishwas," the company offers a diverse product portfolio encompassing crop seeds such as Groundnut, Soyabin, Wheat, Cumin, Green Gram, and Black Gram. 

Additionally, it provides research hybrid seeds for Cotton, Castor, Pearl Millet, Maize, and hybrid vegetable seeds including Chilli, Tomato, Brinjal, Watermelon, Sweet Corn, Cabbage, Onion, Coriander Seeds, Fenugreek, Mustard, Lucern, and Carrot, among others.

The company has its seed processing unit along with Warehouse & Cold storage facility at Bhayla, Taluka: Bavla, District: Ahmedabad, Gujarat.

Vishwas Agri Seeds Limited boasts a comprehensive product line, catering to more than 40 different field crops and vegetables, with a prominent presence across Gujarat, Maharashtra, and Rajasthan facilitated by its robust sales and distribution network. 

With a rich assortment of over 75 crop varieties, the company has exhibited robust financial performance, evidenced by its total revenue of Rs. 8,071.95 lakhs as of September 30, 2023.

 

Vishwas Agri Seeds Limited IPO Overview

Vishwas Agri Seeds Limited IPO date is slated to be open for subscription from March 21, 2024, to March 26, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Vishwas Agri Seeds Limited IPO price is fixed Rs.86 per share. 

The total issue size of this IPO amounts to Rs.25.80 Cr. The company has allocated 50% to retail investors and 50% to other investors.

 

 

Company Financial

Compared to 31 Mar 2023, Vishwas Agri Seeds Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased while the total borrowing has also risen.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	8,071.95	5,351.89	3,362.93
Total Revenue	4,247.49	6,532.18	6,485.80
PAT	451.01	534.14	247.94
Net worth	1,883.90	1,432.89	478.75
Reserve & Surplus	1,183.90	732.89	398.75
Total Borrowings	2,862.87	1,877.88	1,697.17

 

Product-wise Revenue Break up

Name of Product	For the Six month ended September 30, 2023	F.Y.2022-23	F.Y.2021-22
Groundnut seeds	58.03%	46.82%	60.45%
Cumin	25.47%	25.51%	3.78%
Coriander	0.02%	5.47%	1.47%
Wheat	0.00%	3.31%	4.96%
Till	0.30%	2.58%	3.50%
Soyabin	3.21%	2.08%	2.30%
Onion	0.65%	0.24%	3.83%
% of Total Revenue	87.68%	86.02%	80.29%

 

 

 

The Objective of the Issue

The Objectives of the Net Issue is to raise funds for: 

(a) Capital Expenditure to 

i). To Furnish the Corporate Office building 

ii). To buy Equipments for setting up Seed Testing laboratory 

iii). To set-up Greenhouse (Fan-Pad System) 

iv). To install Roof Top Solar Monocrystalline Panels (129.6KW) 

(b) Additional Working Capital Requirement 

(c) General Corporate Purpose

 

Peers of Vishwas Agri Seeds Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Vishwas Agri Seeds Limited	10.00	16.98	5.06
Bombay Super Hybrid Seeds Limited	1.00	1.61	128.79
Kaveri Seed Company Limited	2.00	46.35	14.81
Upsurge Seeds of Agriculture Limited	10.00	7.18	43.93

 

 

 

Evaluation

The IPO is priced at Rs.86 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 16.98 from the last year, the resulting P/E ratio is 5.06x.

• Taking into account the weighted EPS of Rs 12.43 for the last three years, the P/E ratio amounts to 6.91x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 62.51x.

As a result, the IPO price range, with a P/E ratio ranging from 5.06x to 6.91x, seems resonably priced to the industry average of 62.51x.

 

IPO's Strengths

• Integrated seed processing unit equipped with cold storage and warehouse facilities within a single premise.

• Offers a diverse range of products known for their consistent quality.

• Led by an experienced Promoter bolstered by a dedicated management team.

 

IPO's Weaknesses

• The Group Company and Promoter Group entity are involved in a similar line of business as the Company.

• The Company relies heavily on the sale of Groundnut seeds and Cumin seeds.

• There are ongoing legal proceedings involving the Company as of the date of this prospectus.

• The business's operations are seasonal, resulting in potentially varying results for each quarter within a given year.

• Adverse weather conditions, crop diseases, and pest infestations could negatively impact production.

• The Company operates under multiple statutory and regulatory permits, licenses, and approvals.

• The Company faces competition from both organized and unorganized players in the market.

 

IPO GMP Today

The Latest GMP of Vishwas Agri Seeds Limited IPO is Rs.5.

 

Vishwas Agri Seeds Limited IPO Timetable (Tentative)

Vishwas Agri Seeds Limited IPO is scheduled from March 21 to March 26, 2024, with allotment on March 27, refund initiation on March 28, and listing on April 1, 2024.

Events	Date
IPO Opening Date	March 21, 2024
IPO Closing Date	March 26, 2024
IPO Allotment Date	March 27, 2024
Refund initiation	March 28, 2024
IPO Listing Date	April 1, 2024

 

 

 

Vishwas Agri Seeds Limited IPO Details

Vishwas Agri Seeds Limited IPO, with a face value of Rs.10 per share, opens on March 21 and closes on March 26, 2024, offering 3,000,000 shares at Rs.86 per share, with a lot size of 1600 shares, aiming to raise Rs.25.80 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	March 21, 2024 to March 26, 2024
Face value	Rs.10 per share
Issue Price	Rs.86 per share
Lot Size	1600 Shares
Price of 1 lot	Rs.137,600
Issue Size	3,000,000 Shares (aggregating up to Rs.25.80 Cr)
Fresh issue	3,000,000 shares (aggregating up to Rs.25.80 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Vishwas Agri Seeds Limited IPO Lot Details 

For Vishwas Agri Seeds Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.137,600 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.275,200.

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

 

 

 

Vishwas Agri Seeds Limited IPO Reservation 

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of Vishwas Agri Seeds Limited

• Mr. Ashokbhai Sibabhai Gajera

• Mr. Bharatbhai Sibabhai Gajera

• Mr. Dineshbhai Madhabhai Suvagiya

• Ms. Ilaben Pareshbhai Patel

• Mr. Kalubhai Maganbhai Vekariya

• Mr. Maheshbhai Sibabhai Gajera

• Mr. Ketankumar Babulal Suvagiya

• Mr. Babubhai Laljibhai Suvagiya

• Mr. Rameshbhai Laljibhai Suvagiya

• Mr. Shivlal Veljibhai Bhanderi

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	70.00%

 

Vishwas Agri Seeds Limited IPO Lead Managers

• Isk Advisors Pvt Ltd

 

Dividend Policy

The company lacks a formal dividend policy and has not distributed any dividends in the past. The decision regarding future dividend payments will be contingent upon various factors, including the results of operations, earnings, capital needs, surplus, and prevailing financial conditions.

 

 

 

Conclusion

Vishwas Agri Seeds Limited specializes in the processing and distribution of high-quality seeds aimed at enhancing crop yields. The company boasts a diverse range of top-notch products. Moreover, its financial performance is commendable. Investors are encouraged to consider investing in the upcoming IPO after conducting a thorough analysis to maximize potential returns.

 

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.

 

 

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