AMBO Agritec Ltd IPO

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i. Ambo Agritec Limited is primarily engaged in the business of Manufacturing of Biscuits, outsourced manufacturing of Edible Oils, Vanaspati and Bengali Speciality Products (through third parties). In addition to this, the company is also engaged in tradingof Crude Linseed Oil, Soyabean Meal.Our Company use rawmaterial of premium quality sourced from reputed local suppliersfor Biscuits and raw materials imported for Edible Oils & Vanaspati, which help us to ensure the quality of the products.

ii. The products are marketed under its own brand names “Happy Bites” for Biscuits, “Happy Heart” for Edible Oil, “Ambo Gold”& “Vanaspati 2000”for Vanaspati and “Max Health”for Bengali Speciality Products.

iii. The company maintains hygienic norms and use good quality raw materials for manufacturing of its products. With a clientcentric approach, the Company strives hard for utmost contentment of the customers. The manufactured products areprepared completely under hygienic atmosphere by the professional makers. They have been certified by Food Safetyand Standards Authority of India (FSSAI) for the quality management systems of the Company in relation to their products

iv. The Company Operates in the following segments:

1. Manufacturing of Biscuits (at their own factory)
2. Outsourced Manufacturing of Edible Oil, Vanaspati, Bengali Speciality Products etc. (through third party)
3. Trading of Crude Linseed Oil, Soyabean Meal etc.

v. Competitive Strengths

i. Organizational stability along with management expertise.
ii. Smooth flow of operations.
iii. Well-defined organizational structure.

Objects of the AMBO Agritec Ltd IPO:

The Objects of the Issue are: 1.To meet the working capital requirements 2.To meet the Issue Expenses 3. General Corporate Purposes
DRHP of AMBO Agritec Ltd IPO
RHP of AMBO Agritec Ltd IPO

AMBO Agritec Ltd IPO Details:

Open Date: Nov 21 2022
Close Date: Nov 24 2022
Total Shares: 3,400,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 10.20 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 30 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 02 2022

Promoters And Management:

i. Mr. Umesh Kumar Agarwal, aged 41years, is the Promoterand Managing Director of our Company.He has been on the Board of Directors of our Company since December31, 2010. He has done Master of Science in Marketing from the University of Glamorgan Prifysgol Morgannwg; he was actively involved in hisfamily business into bakery and confectionerysegment for over 10 years and has an in-depth knowledge on the overall working ofthis segment. ii. Mr. Saikat Chatterjee, aged about 50years is an Executive Director in our Company. He has been on the Board of Directors of our Company since June 24, 2019. He holds a Bachelor Degree in Commerce from University of Burdwan.He has an in-depth knowledge in bakery and confectionerysegment and has been a driving force in guiding and building the dairy business of the company. iii. Mr. Rang Nath Lahoti, aged about 55years is anExecutiveDirector in our Company. He has been appointed in the Board of Directors of our Company on April 08, 2022. He has done Chemical Engineering from University of Poona

Financials of AMBO Agritec Ltd IPO:

Particulars (in crores) Jun-22 Mar 22 Mar-21
Revenue from operations 15 94 47
Cost of Materials Consumed 14 84 42
Purchase of Stock-in-trade 0.1 3 0.2
Changes in Inventories of Finished Goods 0.1 -0.4 -0.2
Employee Benifit Expense 0.4 0.9 0.5
Other Expense 0.3 3 2
Operating Profit 0.10 3.50 2.50
OPM% 0.67% 3.72% 5.32%
Finance Cost 0.2 0.9 0.9
Depreciation 0.02 0.1 0.1
Other Income 0.2 0.1 0.03
Profit (Loss) before tax 0.6 1 0.2
Profit (Loss) for the period 0.4 1 0.1

Comparison With Peers:

There is no listed peer related to such business.

Recommendation on AMBO Agritec Ltd IPO:

Review and Recommendation of Ambo Agritech SME IPO by IZ team is 6/10

1. Ambo Agritec Limited IPO is primarily engaged in the business of Manufacturing of Biscuits, outsourced manufacturing of Edible Oils, Vanaspati and Bengali Speciality Products (through third parties). 2. The Company use raw material of premium quality sourced from reputed local suppliers for Biscuits and raw materials imported for Edible Oils & Vanaspati 3. For manufacturing biscuits they have factory in Raniganj in the state of West Bengal. 4. The products are marketed under brand names “Happy Bites” for Biscuits, “Happy Heart” for Edible Oil, “Ambo Gold” & “Vanaspati 2000” for Vanaspati and “Max Health” for Bengali Speciality Products. 5. Revenue in FY20 was 73 Crores which was reduced to 47 Crores in Fy21 due to covid-19 but again rose to 94 Crores in Fy22. Out of 94 Crores revenue in Fy22, Edible oil contributes 76 Crores, Vanaspati contributes 7 Crores and Biscuits ~7 Crores. 6.  Debt as on 30.06.2022 is ~11 Crores and Net-worth of ~4 Crores. So, D/E is 2.74 (high). 7. PAT in Fy22 was 119 lacs and total outstanding shares post IPO would be ~93 lacs, so, EPS would be 1.26 and asking P/E would be 23x looks reasonable. 8. Mcap = 28 Crores.

Lead Manager of AMBO Agritec Ltd IPO:

  1. Finshore Management Services Limited

Registrar of AMBO Agritec Ltd IPO:

  1. Cameo Corporate Services Limited

Company Address:

AMBO Agritec Ltd 3, Pretoria Street, Chandrakunj Building, 2nd Floor, Kolkata – 700071 Phone: +91 98310 74747 Email: cs@amboagritec.com Website: http://www.amboagritec.com/

Discussion on AMBO Agritec Ltd IPO:

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