What you must know about TBI Corn IPO?

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 30th May 2024 - 01:12 pm

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TBI Corn Ltd – About the company

TBI Corn Ltd was incorporated in the year 2,000 to manufacture and export corn meal grits. The company is substantially focused on producing high-quality corn and maize grits and other related products. The plant of TBI Corn Ltd is located at Sangli district in the southern part of Maharashtra. In terms of its product portfolio, TBI Corn Ltd sells a suite of products, which include fat-free corn grits, fat-free corn meals, corn flakes, stone-free broken maize, and corn flour. The speciality of the products manufactured by TBI Corn Ltd is that they are free of chemical additives or preservatives and are free of GMO (genetically modified organisms). Apart from a strong domestic market, the company also exports its products to other countries like the United Arab Emirates (UAE), Oman, Jordan, South Africa, and Vietnam. The company currently employs 48 personnel on its rolls.

Highlights of the TBI Corn Ltd SME IPO

Here are some of the highlights of the TBI Corn IPO on the SME segment of the National Stock Exchange (NSE).

  • The issue opens for subscription on 31st May 2024 and closes for subscription on 04th June 2024; both days inclusive.
  • The stock of the company has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹90 to ₹94 per share. Being a book built issue, the final price will be discovered within this band.
  • The IPO of TBI Corn Ltd has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive.
  • As part of the fresh issue portion of the IPO, TBI Corn Ltd will issue a total of 47,80,851 shares (47.81 lakh shares approximately), which at the upper band IPO price of ₹94 per share aggregates to fresh fund raising of ₹44.94 crore.
  • Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 47,80,851 shares (47.81 lakh shares approximately) which at the upper band IPO price of ₹94 per share will aggregate to overall IPO size of ₹49.94 crore.
  • Like every SME IPO, this issue also has a market making portion. While the size of the market making portion is yet to be finalized, it normally ranges between 5% and 6% of the issue size. SS Corporate Services Ltd has already been appointed as the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing.
  • The company has been promoted by Yogesh Laxman Rajhans. The promoter holding in the company currently stands at 76.65%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 57.71%.
  • The fresh issue funds will be used by the company for the expansion of its existing unit as well as to meet its incremental working capital expenditure. A small part of the IPO proceeds has also be set aside for general corporate purposes.
  • Swastika Investmart Ltd and Ekadrisht Capital Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue is SS Corporate Services Ltd.

The IPO of TBI Corn Ltd will be listed on the SME IPO segment of the NSE.

TBI Corn Ltd IPO – Key Dates

The SME IPO of TBI Corn Ltd IPO opens on Friday, 31st May 2024 and closes on Tuesday, 04th June 2024. The TBI Corn Ltd IPO bid date is from 31st May 2024 at 10.00 AM to 04th June 2024 at 5.00 PM. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day; which is 04th June 2024.


Tentative Date

IPO Open Date

31st May 2024

IPO Clos Date

04th June 2024

Basis of Allotment

05th June 2024

Initiation of Refunds to non-allottees

06th June 2024

Credit of Shares to Demat

06th June 2024

Listing Date

07th June 2024

It must be noted that in ASBA applications, there is no refund concept. The total application amount is blocked under the ASBA (applications supported by blocked amounts) system. Once the allotment is finalized, only the amount is debited to the extent of the allotment made and the lien on the balance amount is automatically released in the bank account. The credit of shares to the demat account on June 06th 2024, will be visible to investors under the ISIN Code – (INE0N2D01013). This allocation to the demat account is only applicable to the extent of the allocation of shares and if no allocations are made in the IPO, then no credit would be visible in the demat account.

IPO allocation and minimum investment lot size

TBI Corn Ltd is yet to announce the size of the market maker allocation, which will be used as inventory for market making. SS Corporate Services Ltd will be the market maker for the IPO. The net offer (net of market maker allocation) will be divided between the QIB investors, retail investors and the HNI / NII investors. The breakdown of the overall IPO of TBI Corn Ltd in terms of allocation to various categories are captured below.

Investor Category

Shares Allocated in the IPO

Market Maker Shares

Yet to be announced for the IPO

Anchor Portion Allocation

To be carved out of the QIB allocation

QIB Shares Offered

50% of net issue size (net of market maker portion)

NII (HNI) Shares Offered

15% of net issue size (net of market maker portion)

Retail Shares Offered

35% of net issue size (net of market maker portion)

Total Shares Offered

47,80,851 shares (100.00% of total issue size)

Data Source: Company RHP

The minimum lot size for the IPO investment will be 1,200 shares. Thus, retail investors can invest a minimum of ₹1,12,800 (1,200 x ₹94 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 2,400 shares and having a minimum lot value of ₹2,25,600. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The table below captures the break-up of lot sizes for different categories.





Retail (Min)




Retail (Max)




HNI (Min)




There are no upper limits for investments by HNIs / NIIs in the IPO of TBI Corn Ltd.

Financial highlights: TBI Corn Ltd

The table below captures the key financials of TBI Corn Ltd for the last 3 completed financial years.





Net Revenues (₹ in crore)




Sales Growth (%)




Profit after Tax (₹ in crore)




PAT Margins (%)




Total Equity (₹ in crore)




Total Assets (₹ in crore)




Return on Equity (%)




Return on Assets (%)




Asset Turnover Ratio (X)




Earnings per share (₹)




Data Source: Company RHP filed with SEBI

Here are some of the key takeaways from the financials of the company for the last 3 years; i.e., from FY22 to FY24, being the latest year.

  • The revenues over the last 3 years have been fairly steady in terms of growth. However, if you look at the sales of FY23 and compare with FY21, then the net revenues have more than doubled. That is a robust story. However, net profits have shown strong growth traction only in the latest year of FY23.
  • While net margins of the company are modest at 4.93% in the latest year, the margins have grown sharply in the last 3 years. The return on equity (ROE) stands at 40.89% in FY23, while the return on assets (ROA) is robust at 8.91% in FY23. If we discount the volatility of last two years, the numbers are fairly strong.
  • The asset turnover ratio or the sweating ratio has been robust in the latest year at 1.81X and that is good considering the capital intensity and the risks of the business. However, this sweating ratio also gets supported by the robust levels of return on assets (ROA) at 8.91%. We need to wait for a more sustainable number to be able to take a call.

The company has latest year EPS of ₹36.34 and we have not included the weighted  average EPS, since the previous year data is not exactly comparable. The latest year earnings are being discounted by the IPO price of ₹94 per share at 2-3 times P/E ratio. That looks fine, but for the volatility in numbers we have seen in the last few years. However, there is a bigger narrative that investors must be aware of. The company converted from a partnership to a company only in the latest year. That is why previous year data is not comparable. Also, we have applied the latest number of shares as of September 2023, to give a more realistic picture. The post IPO dilution could further reduce the EPS.

To be fair, TBI Corn Ltd some bring some intangible advantages to the table. Of one looks at the half year EPS of the company for FY24, then we could be closer to an EPS of ₹70 per share in FY24, so the discounting becomes further more attractive. Investors must be conscious of the inherent risks in this type of business. However, this is an industry that has a huge market and can give good returns in the coming years. However, the high risk assumption cannot be ignored.

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