What you must know about Vishwas Agri Seeds IPO?

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 19th March 2024 - 03:43 pm

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About Vishwas Agri Seeds Ltd

Incorporated in 2013, Vishwas Agri Seeds Limited is a leading player in the seed industry, primarily engaged in processing and supplying seeds to farmers under the renowned brand "Vishwas". Situated in Bavla, District Ahmedabad, Gujarat, the company operates a comprehensive commercial setup comprising a seed processing unit, warehouse and cold storage facility. Their extensive product portfolio includes seeds for more than 40 different field crops and vegetables, ranging from groundnut, soybean, wheat and cumin to hybrid varieties like cotton, pearl millet, and maize. Moreover, they offer a wide range of hybrid vegetable seeds such as chilli, tomato, brinjal, and watermelon, among others. Vishwas Agri Seeds Limited maintains a strong presence across Gujarat, Maharashtra, and Rajasthan, serving farmers with over 75 crop varieties tailored to diverse agricultural needs. Vishwas Agri Seeds has 18 dedicated employees focused on the marketing and sales aspects of the business, ensuring effective outreach and support to the farming community.

Highlights of the Vishwas Agri Seeds IPO

Here are some of the highlights of the Vishwas Agri Seeds IPO

  • Vishwas Agri Seeds IPO will be open from 21 March 2024 to 26 March 2024. Vishwas Agri Seeds IPO has a face value of ₹10 per equity share and the price band for the  Vishwas Agri Seeds IPO has been fixed at ₹86 per share.
  • The IPO of Vishwas Agri Seeds Ltd has only a fresh issue component and no offer for sale (OFS) portion.As part of the fresh issue portion of the IPO,  Vishwas Agri Seeds will issue a total of 30 lakh shares, at the fixed price of the IPO at ₹86 per share to raise fresh funds of ₹25.80 crores.
  • Since Vishwas Agri Seeds contains no offer for sale component the total IPO size is equivalent to the fresh issue size of the IPO which is ₹25.80 crores.
  • The company has been promoted by Mr.Ashokbhai Sibabhai Gajera, Mr. Bharatbhai Sibabhai Gajera, Mr.Dineshbhai Madhabhai Suvagiya & Others. Before the listing, promoter holding in the company stands at 100%, post the listing promoter equity holding will be diluted to 70%.
  • The raised funds will be used for capital Expenditure, Furnishing the Corporate Office, setting up a Greenhouse, installing roof Top Solar Monocrystalline Panels (129.6KW), meeting working capital needs and general corporate purposes.
  • Isk Advisors Pvt Ltd serves as the book running lead manager for the Vishwas Agri Seeds IPO, while Bigshare Services Pvt Ltd has been appointed as the registrar for the issue. Sunflower Broking will act as the market maker for the Vishwas Agri Seeds IPO.

Vishwas Agri Seeds IPO allocation and lot size for investment

For Vishwas Agri Seeds IPO the net offer will be distributed between retail investors and other investors equally. The allocation breakdown for the overall IPO of Vishwas Agri Seeds Ltd is mentioned below.

Investor Category

Shares Allocation

Retail

50%

Other

50%

Total

100.00%

Lot sizes for investing in the Vishwas Agri Seeds IPO

The minimum lot size for Vishwas Agri Seeds IPO investment is 1600 shares, equivalent to ₹137,600 (1600 shares x ₹86 per share), which is also the maximum for retail investors to participate in this IPO. For Vishwas Agri Seeds HNI/NII investors can invest in a minimum of 2 lots, totaling 3200 shares with a minimum value of ₹2,75,200. Here is the breakdown of lot sizes and amounts for retail and HNI categories.

Application

Lots

Shares

Amount

Retail (Min)

1

1600

₹137,600

Retail (Max)

1

1600

₹137,600

HNI (Min)

2

3,200

₹275,200

Key dates for Vishwas Agri Seeds IPO?

Vishwas Agri Seeds IPO will open for subscription on Thursday, 21 March 2024 and close on Tuesday, 26 March 2024. The bidding period for the Vishwas Agri Seeds IPO will be from 21 March 2024, starting at 10:00 AM, until 26 March 2024, closing at 5:00 PM. For Vishwas Agri Seeds IPO cut-off time for UPI Mandate confirmation is 5:00 PM on the closing day of the IPO, which falls on 26 March 2024.

Event

Tentative Date

IPO Opening Date

21-Mar-24

IPO Closing Date

26-Mar-24

Allotment Date

27-Mar-24

Refunds to non-allottees

28-Mar-24

Credit of Shares to Demat Account

28-Mar-24

Listing Date

1- Apr-24

Listing At

NSE SME

In ASBA applications, when you apply for the IPO the total amount of IPO gets temporarily blocked in your bank account. However, this amount is not deducted immediately. After the shares are allotted, only the amount for the allotted shares is taken from the blocked funds. The rest of the blocked amount is automatically released back to your bank account without needing any refund process.

Financial highlights of Vishwas Agri Seeds Ltd

The table below captures the key financials of Vishwas Agri Seeds Ltd for the last 3 completed financial years.

Particulars

FY23

FY22

FY21

Assets (₹ in Lakhs)

5,351.89

3,362.93

2,095.59

Revenues (₹ in Lakhs)

6,532.18

6,485.80

5,382.66

PAT (₹ in Lakhs)

534.14

247.94

116.30

Net Worth

1,432.89

478.75

200.81

Total Borrowing

1,877.88

1,697.17

1,275.08

Reserves and Surplus

732.89

398.75

150.81

Profit after Tax for Vishwas Agri Seeds Limited has shown growth over the past three fiscal years. In FY21, the PAT stood at ₹116.30 Lakhs, PAT increased in FY22 to ₹247.94 Lakhs reflecting an improvement in profitability. The most recent year FY23 witnessed a surge in PAT reaching ₹534.14 Lakhs.

Vishwas Agri Seeds Vs Peer Comparison

Compared to its competitors, Vishwas Agri Seeds has a decent EPS of 16.98, whereas its listed peer Kaveri Seed Company holds the highest EPS among its peers standing at 46.35. A higher EPS is seen as more favorable for any company.

Company

EPS Basic

P/E

Vishwas Agri Seeds Limited

16.98

5.06

Bombay Super Hybrid Seeds Limited

1.61

128.79

Kaveri Seed Company Ltd.

46.35

14.81

Upsurge Seeds Of Agriculture

7.18

43.93

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Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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