Aristo Bio-Tech and Lifescience Limited IPO

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i. Aristo Bio-Tech is an agrochemical company engaged in the manufacturing, formulation, supplying, packaging and job work services in various Pesticides such as Insecticides, Herbicides, Fungicides, Plant Growth Regulators and a wide variety of other Agrochemicals for India as well as for Export.

ii. Agrochemical industries are very vast field and deals with production and distribution of pesticides and fertilizers to increase the crop yields. Agrochemicals (Crop protection products/pesticides) are designed to protect crops from insects, diseases and weeds. Currently the company has 182 products registered with CIB&RC for manufacturing and sales.

iii. Aristo Bio-Tech Company supplies its products across 20 states i.e. Assam, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, West Bengal and 15 Countries i.e. Armenia, Australia, Bangladesh, Belgium, Cambodia, Germany, Italy, Kenya, Moldova, New Zealand, Poland, South Africa, UAE, Ukraine and Vietnam.

iv. The Company manufactures agrochemicals such as Insecticides, Herbicides, Fungicides and Plant Growth Regulators which are directly sold to our customers and is also engaged in Job work as per customer requirements.

v. Agrochemicals are important agricultural support and boost it while preventing, reducing, and eliminating the impact of disease to increase food output and safety.

vi. Besides manufacturing their own products, the company also provide Contract manufacturing, Job work and Toll manufacturing services for Crop Protection companies.

vii. The company has adequate production and quality control system. All formulations are strictly tested with the latest available guidelines and testing methods by their in-house Quality Control Lab personnel. High Performance Liquid Chromatography (HPLC), Ultraviolet Spectrography (UV) and Gas Chromatography (GC) are used to ensure top quality Raw materials and formulation testing and release. Strict testing for all Packing materials like Tin, HDPE bottles, Coextruded bottles, Fluorinated HDPE bottles, Pet bottles, Labels, Mono cartons, Corrugated boxes, Laminated pouches is also done as per the Food and 96 Agriculture Organization of the United Nations (FAO) and Bureau of Indian Standards (BIS) guidelines and testing methods. All Finished goods are re-tested and counter samples are stored separately in sample storage rooms.

Competitive Strengths

i. Experienced management and a well-trained employee base
ii. Existing client relationship
iii. Quality Assurance and Standards
iv. Innovative Ideas

Objects of the Aristo Bio-Tech and Lifescience Limited IPO:

The Net Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Working Capital Requirement ii. General Corporate Purpose iii. To Meet the Issue Expenses
DRHP of Aristo Bio-Tech and Lifescience Limited IPO
RHP of Aristo Bio-Tech and Lifescience Limited IPO

Aristo Bio-Tech and Lifescience Limited IPO Details:

Open Date: Jan 16 2023
Close Date: Jan 19 2023
Total Shares: 1,812,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 13.05 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 72 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 27 2023

Promoters And Management:

i. Mr. Narendra Singh Barhat, 67 years is Chairman and Managing Director and also the Promoter of the Company He is a Science Graduate from Rajasthan College of Agriculture, Udaipur. He was appointed on the Board on March 17, 2005 and further designated as the Chairman and Managing Director of the Company on September 10, 2018 for a period of 5 years not liable to retire by rotation. He is having experience of 45 years in agrochemical industry. He is in charge of micromanaging, delegating tasks, ensuring adequate and satisfactory work output. He adapts to changes in the industry and quickly makes adjustments to operations if need. He leads in the industry, formulating new product offerings and goes above and beyond the efforts of the competition to impress and satisfy every client. His ability to proficiently research and learn about new topics and concepts is such an important attribute for the company. He is assertive yet considerate, passionate yet logical, persuasive, and inspiring. ii. Mrs. Kusum Narendra Singh Barhat, aged 59 years, is the Executive Director and also the Promoter of the Company. She is under Matriculate. She was appointed on the Board on March 17, 2005. She develops corporate plans for a variety of HR matters such as compensation, benefits, health and safety. She manages programs and lead staff while also possess a strong strategic mindset. She bridges the gap between the top management and employees as well as with labor unions. She monitors adherence to internal policies and legal standards. She has contributed remarkable 30 years of her life to the Company for its betterment and thus Company has reached to its new heights with the help of her knowledge, experience and skills. She is is having experience of 30 years in administration and Management. iii. Mr. Ketankumar Harkantbhai Joshi, aged 51 years is the Whole Time Director and also the Promoter of the Company. He holds degree in Bachelor in Mechanical Engineering. He was originally appointed on the Board on August 27, 2018 and further designated as the Whole Time Director of the Company on March 20, 2022 for a period of 5 years not liable to retire by rotation. He is having experience of 26 years in agrochemical industry. He helped the organization to reach to new heights in its initial stage of incorporation with the help of his substantial experiences and knowledge gained throughout his journey. He has vast knowledge of the business & related industries.

Financials of Aristo Bio-Tech and Lifescience Limited IPO:

Pariculares ( In Lakhs ) 2020 2021 2022
Revenue from Operations 20,123 16,722 16,599
Other Income 1 1 4
Total Revenue 20,124 16,723 16,603
Cost of Materials Consumed 15,420 12,378 13,842
Purchases of stock-in-Trade 2,884 2,566 880
Changes in Inventories 451 59 -16
Employee Benefits Expense 374 354 531
Other Expenses 544 930 815
EBITDA 454 436 551
Depreciation & Amortisation 52 75 110
Finance Cost 260 211 236
EBIT 400 361 440
OPM (%) 2.26% 2.61% 3.32%
PBT 140 150 204
PAT 101 108 146
NPM (%) 0.50% 0.64% 0.88%
No.of Shares 68.07 68.07 68.07
EPS 1.48 1.58 2.15
P/E 49.0 45.5 33.5

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (in Crore)
Aristo Bio-Tech and Lifescience Limited 166 1.46 2.15 33.5 72 49
Dhanuka Agritech Limited 1478 209 44.8 15.3 721 3359
Meghmani Organics Limited 2948 304 12 8.06 109 2777

Recommendation on Aristo Bio-Tech and Lifescience Limited IPO:

Review and Recommendation of Aristo Bio-Tech Lifesciences SME IPO is 4/10 1. ARISTO BIO-TECH AND LIFESCIENCE manufacturers, formulates, supplies, packages, and provides job work services for pesticides such insecticides, herbicides, fungicides, plant growth regulators, and others for India and export. 2. The huge agrochemical industry produces and distributes insecticides and fertilisers to boost agricultural yields. Agrochemicals protect crops from insects, illnesses, and weeds. Currently the company has 182 products registered with CIB&RC for manufacturing and sales. 3. The company sells its products in 20 states and 15 countries: Armenia, Australia, Bangladesh, Belgium, Cambodia, Germany, Italy, Kenya, Moldova, New Zealand, Poland, South Africa, UAE, Ukraine, and Vietnam. 4. The company manufactures its own products and provides contract manufacturing, job work, and toll manufacturing for crop protection companies. production quality control is sufficient. 5. Their Quality Control Lab tests all compositions using the latest guidelines and procedures. HPLC, UV, and GC ensure high-quality raw materials and formulation testing and release. 6. Company Strengths :- a. Experienced management and a well-trained employee base. b. Existing client relationship. c. Quality Assurance and Standards. d. Innovative Ideas. e. Scalable Business Model. f. Cost effective production and timely fulfilment of orders. 7. National Fertilizers Limited, HIL (India) Limited, Modern Insecticides Limited, and others are their regular clients. 8. They compete in a crowded industry. Their competitors sell similar things. They think their cost-effective and integrated offers, customer happiness, reliability, and quality consciousness provide them a competitive advantage in many of their goods. 9. The Revenue has decreased from Rs. 201 Crore in FY20 to Rs.166 Crore in FY22 mainly affected by covid-19 impact. 10. The EBITDA has Increased from 4 Crore in FY20 to 5 Crore in FY22. 11. The PAT has Increased from 1 Crore in FY20 to 1.46 Crore in FY22. 12. As per FY22, EPS is 2.14 , Market Capitalisation is 49 Crore & P/E is x 33.53X. The IPO looks over valued as compared to peers.  

Lead Manager of Aristo Bio-Tech and Lifescience Limited IPO:

  1. Beeline Broking Limited

Registrar of Aristo Bio-Tech and Lifescience Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Aristo Bio-Tech and Lifescience Limited E-24,25,26, G.I.D.C. Manjusar, Ta. Savli, Vadodara – 391775 Phone: +91-2667-264843 Email: cs@aristobiotech.com Website: http://www.aristobiotech.com

Discussion on Aristo Bio-Tech and Lifescience Limited IPO:

3 Comments

    Aristo Bio Tech and Lifescience IPO final subscription status

    NII 286x
    Retail 145x

    Total Subscription 216x

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    Aristo Bio-Tech and Lifescience IPO Subscription Status Day 2

    NII 3.45x
    Retail 15.38x

    TOTAL SUBSCRIPTION 9.41x

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    Aristo Bio-Tech and Lifescience IPO Subscription Status Day 1

    NII 0.36x
    Retail 2.36x

    TOTAL SUBSCRIPTION 1.5X

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