Vishwas Agri Seeds is coming up with an IPO worth INR 25.80 crores, consisting of a fresh issue of 25.80 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement and to incur capital expenditure to furnish the corporate office, purchase equipment in the seed testing laboratory, set up a greenhouse, and install rooftop solar panels.
Vishwas Agri Seeds Limited IPO – Important Dates
| Vishwas Agri Seeds IPO Date | March 21, 2024 to March 26, 2024 |
| Vishwas Agri Seeds IPO Listing Date | April 1, 2024 |
| Vishwas Agri Seeds IPO Price | INR 86 per share |
| Vishwas Agri Seeds IPO Lot Size | 1600 Shares |
| Vishwas Agri Seeds IPO Total Issue Size | INR 25.80 crores |
| Vishwas Agri Seeds IPO Basis of Allotment | March 27, 2024 |
| Vishwas Agri Seeds IPO Initiation of Refunds | March 28, 2024 |
| Vishwas Agri Seeds IPO Credit of Shares to Demat | March 28, 2024 |
| Vishwas Agri Seeds IPO Issue Type | Fixed Price Issue |
| Vishwas Agri Seeds IPO Listing At | NSE SME |
Vishwas Agri Seeds IPO – Company Profile
Vishwas Agri Seeds Ltd started its business in the city of Gondal near Rajkot, Gujarat in the year 2009. Initially started with a small-scale seed processing unit in Gondal, Rajkot. Today Vishwas Agri Seeds Limited is in the business of processing quality seeds and supplying them to farmers via their distribution network.
The company sells its seeds under the brand name “Vishwas”. The company’s seeds processing unit is equipped with an optical sorting machine, which detects unwanted colors, subtle discoloration, size and shape defects, and foreign materials. Further, the seeds undergo a seed treatment process where seeds are processed by application of fungicide, insecticide, or a combination of both, to seeds to disinfect them from seed-borne or soil-borne pathogenic organisms and storage insects.
Vishwas Agri Seeds Limited IPO – Fundamental Analysis
Vishwas Agri Seeds Ltd’s IPO reveals a mix of equity growth and asset expansion against a backdrop of revenue fluctuations and rising liabilities. This complex financial landscape suggests a cautious investment approach, weighing growth prospects against potential risks.
Revenue Growth:
The company’s revenue saw a marginal increase from ₹6,485.58 lakhs in FY2022 to ₹6,530.73 lakhs in FY2023, followed by a decrease to ₹4,246.03 lakhs by September 2023, indicating potential seasonality or market fluctuations affecting sales.
Equity Growth:
Equity has significantly increased, nearly quadrupling, reflecting investor confidence and capital infusion aimed at expansion or operational improvements.
Profitability:
Profit after tax shows growth in FY2023 but a reduction in the half-yearly report of FY2024. The decreasing trend in RoNW from 51.79% to 23.94% could raise concerns about diminishing efficiency in generating returns on equity.
Diluted EPS:
The EPS experienced growth in FY2023, signaling increased profitability per share, which is a positive indicator for investors. However, the decline to 6.44 by September 2023 reflects the dip in profitability noted.
NAV per Equity Share:
The fluctuating NAV per equity share, which decreased in FY2023 before slightly recovering by September 2023, might confuse investors regarding the intrinsic value of the company’s shares.
Asset and Liability Management:
Total assets have more than doubled, indicating business expansion and investment in capacity. Conversely, the total liabilities have also significantly increased, affecting the debt-equity ratio, which shows a high level of leverage, especially in FY2022, before partially improving.
Liquidity:
The current ratio has been decreasing, suggesting tighter liquidity and potential challenges in covering short-term obligations efficiently.
Vishwas Agri Seeds Ltd IPO Financial Information
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 September 2023 |
| Revenue (₹ in lakhs) | 6,485.58 | 6,530.73 | 4,246.03 |
| Equity (₹ in lakhs) | 478.75 | 1,432.89 | 1,883.90 |
| Expenses (₹ in lakhs) | 3,642.99 | 5,818.38 | 6,154.38 |
| Profit and Loss After Tax (₹ in lakhs) | 247.94 | 534.14 | 451.01 |
| RoNW (%) | 51.79% | 37.28% | 23.94% |
| Diluted EPS only (₹) | 9.49 | 16.98 | 6.44 |
| NAV per Equity Share (₹) | 59.84 | 20.47 | 26.91 |
| Total Assets (in lakhs) | 3,362.93 | 5,351.89 | 8,071.95 |
| Total Liabilities (in lakhs) | 2,884.18 | 3,919.00 | 6,188.05 |
| Current Ratio (In times) | 1.39 | 1.28 | 1.19 |
| Debt Equity Ratio (in times) | 3.55 | 1.31 | 1.52 |
Vishwas Agri Seeds Ltd IPO Peer Comparison
Vishwas Agri Seeds Limited, with revenue of ₹6530.73 lakhs and a RoNW of 55.88%, stands out for its high returns, despite lower revenue compared to peers like Kaveri Seed Company and Bombay Super Hybrid Seeds, showcasing strong efficiency and profitability.
| Company | Total Revenue (₹ in lakhs) | Face Value (₹) | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Vishwas Agri Seeds Limited | 6530.73 | 10 | 16.98 | 55.88 | 20.47 |
| Bombay Super Hybrid Seeds Limited | 22,860.52 | 1 | 1.61 | 19.44 | 5.37 |
| Kaveri Seed Company Limited | 1,05,789.02 | 2 | 14.81 | 18.58 | 245.60 |
| Upsurge Seeds of Agriculture Limited | 8291.04 | 10 | 43.93 | 12.28 | 54.91 |
Vishwas Agri Seeds IPO Objective
The main objective is to fund capital expenditure by allocating INR 7.60 crores for corporate office furnishing, equipment for seed testing, greenhouse setup, and rooftop solar panels. Additionally, INR 11 crores will address working capital needs, with the remaining funds supporting general corporate goals.
- To fund capital expenditure: The company plans to utilize INR 7.60 crores to furnish the corporate office, purchase equipment in the seed testing laboratory, set up a greenhouse, and install rooftop solar panels.
- To fund the working capital requirements: With the expansion of the business activity, the company will require additional working capital requirements. The company plans to utilize INR 11 crores for the said purpose.
- General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.
Vishwas Agri Seeds Ltd IPO Risks And Challenges
The company’s risks include high working capital needs that could impact operations negatively. Corporate guarantees to HDFC Bank for loans taken by the Group Company pose financial liability risks. Dependency on Groundnut and Cumin seed sales exposes businesses to product concentration risks. Seasonal business operations may lead to incomparable quarterly results.
- The operations are subject to high working capital requirements. The inability to maintain an optimal level of working capital required for the business may impact the operations adversely.
- The company has provided corporate guarantees to HDFC Bank for the loans availed by the Group Company, Vraj Hybrid Seeds Limited. In the event any of the group companies default on any of the loans availed, the company will be liable for the repayment obligations.
- The company is highly dependent on the sale of Groundnut seeds & Cumin seeds. The business is exposed to risks related to product concentration, which could materially and adversely affect the business, financial condition, results of operations, and prospects.
- The company’s business is seasonal and therefore the results of operations for any quarter in a given year may not be comparable with other quarters in that year.
Vishwas Agri Seeds Limited IPO – Industry & Market Potential
The Global Seed Market size is estimated at USD 66.85 billion in 2023, and is expected to reach USD 92.02 billion by 2028, growing at a CAGR of 6.60% during the forecast period (2023-2028). Hybrid seeds have witnessed high growth, mainly from the major agriculture-producing countries, because of their various benefits, including higher productivity, wider adaptability, and a high degree of resistance to biotic and abiotic stresses.
For instance, in cotton, hybrids yield 50% more than conventional varieties. Their wider adaptability is mainly due to their high buffering capacity to environmental fluctuations. Globally, Asia-Pacific is the largest agricultural region in terms of production, which holds the major share in the global seed market due to the increase in area under major crops and the increase in seed replacement rate. For instance, the area harvested in cereals increased to 341 million hectares in 2020 from 333 million hectares in 2019.
Vishwas Agri Seeds IPO – Type of Offer
Vishwas Agri Seeds is launching an IPO valued at INR 25.80 crores, comprising 25.80 lakh new shares. The company intends to allocate the proceeds to fulfill working capital needs and to invest in capital expenditures such as furnishing the corporate office, acquiring equipment for the seed testing laboratory, setting up a greenhouse, and installing rooftop solar panels.
Vishwas Agri Seeds Limited IPO Offer Size
The offer size of Vishwas Agri Seeds Limited’s IPO is INR 9.86 crores.The company plans to utilize the funds raised to meet the working capital requirement and to incur capital expenditure to furnish the corporate office, purchase equipment in the seed testing laboratory, set up a greenhouse, and install rooftop solar panels.
Vishwas Agri Seeds Ltd IPO Allotment Structure
Vishwas Agri Seeds Limited’s IPO allotment structure includes a Retail Individual Investors (RII) category with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications with value exceeds INR 2 lakhs.
- Market Maker Reservation: 1,52,000 shares are reserved for market makers.
How to apply for Vishwas Agri Seeds Ltd IPO?
To apply for the Vishwas Agri Seeds IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Vishwas Agri Seeds IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Vishwas Agri Seeds IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares. Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to check Vishwas Agri Seeds IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Vishwas Agri Seeds IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Vishwas Agri Seeds IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance. Apart from Alice Blue, there are other ways to check the allotment status of the Vishwas Agri Seeds IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Vishwas Agri Seeds IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status. Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Vishwas Agri Seeds Limited IPO Offer Registrar
The Vishwas Agri Seeds IPO’s registrar is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6-2, 6th Floor,
Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai
Website: www.bigshareonline.com
E-Mail: [email protected]
Vishwas Agri Seeds IPO – FAQs
1. What is the allotment date of the Vishwas Agri Seeds IPO?
The allotment date of the Vishwas Agri Seeds IPO is March 27, 2024.
2. What is the price band of Vishwas Agri Seeds IPO?
The price band of the company is INR 86 per share.
3. What is the size of the Vishwas Agri Seeds IPO?
Vishwas Agri Seeds is coming up with an IPO worth INR 25.80 crores, consisting of a fresh issue of 25.80 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement and to incur capital expenditure to furnish the corporate office, purchase equipment in the seed testing laboratory, set up a greenhouse, and install rooftop solar panels.
4. What is the listing date of the Vishwas Agri Seeds IPO?
The listing date of the Vishwas Agri Seeds IPO is April 1, 2024.
