(i) Gujarat based Indo US Bio-Tech Limited, is engaged in the business of breeding products,processing and marketing of high performing open-pollinated and hybrid agricultural seed varieties & seed testing, soil & water testing.
(ii) The company has its own laboratory for seed testing at Junagadh.
The company started In-House Research and Development (R&D) unit at Modasa, District – Sabarkantha (Gujarat) for research activities to produce better and different varieties of seeds. On September 23, 2011, it got the recognition up to March 31, 2014, for In-House R&D from Government of India, Ministry of Science and Technology, Department of Scientific and Industrial Research Technology Bhavan, New Delhi (DSIR).
(iii) In the initial stage, the company was engaged in producing different varieties of oilseeds and pulses seeds, later on, it also added vegetable, spices and cereals seeds to its basket. In the year 2014, it shifted its R&D unit Gandhinagar to carry on its research activities.
(iv) As on January 31, 2018, Indo US Bio-Tech has 45 Employees in various departments. Indo Us Bio-Tech Limited consider
(a) Its R&D, which confers competitive advantages to the farmers, and
(b) its scientific activities, as the key success factors in developing and commercializing several superior hybrids.
The R&D center of INDO US BIO-TECH LIMITED has been accorded recognition by the department. We got certification of registration as seed importer from “NATIONAL SEEDS CORPORATION LTD.” We have got approval from DSIR (Department of Scientific & Industrial Research) New Delhi for research & development programme which is held at our R&D center.
R & D is focused to meet the requirement of farmers, markets and agro-industries to provide cost –effective technologies. The company consistently focuses on the changing preferences and needs of farmers, adding value to its products, and cautiously addressing the environmental concerns.
(v)INDO US BIO-TECH LIMITED believes in increasing the productivity by using methods that are environmentally compatible and economically sound by integrating new technological developments like biotechnology and genetic engineering with conventional plant breeding methods.
Promoters of Indo US Bio-Tech Limited Company are:
1.Mr. Jagdish Ajudia.
Capital Structure:
(i) Authorized Share Capital
( 60,00,000 shares at FV@10)
6 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(34,24,392 Shares at FV@10)
3.424 Cr
(iii) Present Issue
( 14,30,000 Shares at FV@10)
1.4 Cr
(iv) Reservation for Market Maker (74,000 Shares at FV@10)
7.4 Lacs
(v) Net Issue to Public
(14,30,000-74,000= 13,56,000 Shares)
1.356 cr
(vi) QIB & HNI Quota-6,78,000
50%
(vii) Retail Quota- 6,78,000
50%
(viii) Paid Up Share Capital after the issue
4.824 Cr
Financials of Indo US Bio-Tech Limited IPO:
1. Balance Sheet Snippet[ Financials as of Oct 2017]
(i) Shareholders’ Fund[Equity] Value
463.17 Lacs
(ii) Asset
2055.95 Lacs
(iii) Liability
1592.78 Lacs
(iv) Debt/Equity[<1 ideal]
3.43(high)
(v) Current Ratio[>1.5 ideal]
1.19
(v) Net Worth[Asset- Liability]
463.17 Lacs
(vi) RONW[PAT/Net Worth] or ROE
16%
(vii) Book Value or NAV[ Net Worth/No.of Shares]
31
(viii) P/B [<5 ideal]
1.65(reasonable)
2. Profit n Loss Snippet
(i) The Reveune of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 13.25%.
(i) The PAT of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 21.38%[ Excellent]. However, the profit of first 7 months of FY18 looks inflated at .74 Cr on Revenue of 15.88 Cr which raises concern.
(iii) The EBITDA Margins of the company for FY13( 4.95%), FY14(2.78%), FY15(3.52%), FY16(3.15%) and FY17(3.5%). The company's EBITDA margins as almost flat in last 5 years.
(iv) P/B(post issue)= 2.125
(v) Annualized EPS(post issue)= 2.6
(vi) Annualized P/E(post issue)=19.61 at the cutoff price of 51.
3. Cash Flow Statement(all figures in lacs)
Particulars
FY17
FY16
FY15
FY14
FY13
(i) Net Cash Generated from Operation
6.78
-257.81
14.4
45.86
-63.38
(ii) Net Cash Generated from Investment
-16.84
-10.57
-17.43
-20.81
-35.71
(iii) Net Cash Generated from Financing Activity
4.72
278.08
3.29
-24.85
98.96
(iv) Total[ (i)+(ii)+(iii) ]
-5.34
9.7
0.26
0.2
-0.13
(v) Cash and Cash Equivalents at the Beginning of the Year
10.42
0.73
0.47
0.26
0.39
(vi) Cash and Cash Equivalents at the end of the Year
5.08
10.43
0.73
0.46
0.26
Comparison With Peers:
Name of the Company
FV
EPS
PE
RONW
Indo Us Bio-Tech Ltd
10
2.6
19.61
16%
Mangalam Seeds Ltd
10
5.98
18.39
3.27%
Kaveri Seed Company Ltd
2
11.36
43.43
7.66%
Nath Bio-Genes Ltd
10
10.17
46.55
11.83%
Recommendation on Indo US Bio-Tech Limited IPO:
Review and Recommendation of
Indo US Bio-Tech Limited IPO
from our side is:
The Company has flat Margins in last 5 years and the Profit of the First seven months of FY18 also looks inflated before the issue.
Rating: 3/10.
1-5: Fair
5-7: Good
7-10: Excellent
Bid Details of Indo US Bio-Tech Limited IPO as on
03 May 2018 | 11:59:10 PM
Category
No.of shares offered
No. of shares bid
678,000
13,296,000
678,000
13,480,000
74,000
74,000
1,430,000
26,850,000
QIBs
Yes
QIBs+HNIs Subscription
19.61X
Retail Subscription
19.88X
Total Subscription
19.75X
Discussion on Indo US Bio-Tech Limited IPO:
5 Comments
In continuation to the Exchange’s notice no. 20180510-25 dated Thursday, May 10, 2018 Trading Members are hereby informed that the trading in the equity shares of Indo Us Bio-Tech Limited (Scrip Code: 541304) shall be transferred from Trade for Trade segment (MT Group) to Rolling segment with effect from May 25, 2018. Accordingly, the dealings in the equity shares of the company will be shifted under M Group.
INDO US BIO-TECH LIMITED is well growing seeds manufacturing company in India. It has their own DSIR approved R&D Center in Gujarat. I have visited their center with my village farmer team. INDO US BIO-TECH are always try to satisfy their farmer with seeds,crops, farming training and help for growing wealth of farmer. INDO US BIO-TECH is coming with their SME IPO on 30th April 2018. Issue closes on 3rd May 2018. I read prospectus on their website.
In continuation to the Exchange’s notice no. 20180510-25 dated Thursday, May 10, 2018 Trading Members are hereby informed that the trading in the equity shares of Indo Us Bio-Tech Limited (Scrip Code: 541304) shall be transferred from Trade for Trade segment (MT Group) to Rolling segment with effect from May 25, 2018. Accordingly, the dealings in the equity shares of the company will be shifted under M Group.
Subject2: Rs.6500-Rs.7000 in Ahmedabad.
I am avoiding the issue.
INDO US BIO-TECH LIMITED is well growing seeds manufacturing company in India. It has their own DSIR approved R&D Center in Gujarat. I have visited their center with my village farmer team. INDO US BIO-TECH are always try to satisfy their farmer with seeds,crops, farming training and help for growing wealth of farmer. INDO US BIO-TECH is coming with their SME IPO on 30th April 2018. Issue closes on 3rd May 2018. I read prospectus on their website.
Emerge IPO Alert :
*Akash Exploration Services*
Date – 17 to 19 April 2018
Price – 56
Lot – 2000
Size – 10.08 crs
LM – Monarch
Registrar – Skyline