City Crops Agro Limited IPO

Apply 0
Avoid 0

i. City Crops Agro is engaged in the business of trading of products like seeds, agricultural produces mainly Rice, Wheat, Onions, Potato, Tomato, Isabgol, and Pulses. They have an integrated online platform which includes products such as cereals, oil seeds, pulses, and vegetables. The company is also engaged in contract manufacturing for agricultural produce such as Cucumber, Onion and Castor.

ii. The company sources the agricultural products from the manufacturers by paying an advance payment with our labeling and then these products are sold to our network of distributors. Owing to their presence in the market for decades, they have built strong relationships with both the farmers as well as with the wholesaler/retailers’ community.

iii. In contract manufacturing, the company leases an agricultural land on lease and cultivate Cucumber, Onion and Castor for meeting the demand in the market. This gives the company control over the entire process and getting the agricultural produces at better rates as compared to the market. A part of the yield is shared with the farmers working on contractual basis on the leased land, which further helps the local farmers’ community. The company currently has around 47.31 acres of land for agricultural production.

iv. Promoters have been instrumental in the growth of the business and actively advised on corporate strategy and planning. With a collective experience of over a decade in the agricultural industry, the promoters with their vast experience have handled various areas of business including strategic planning and implementation, procurement, storage, marketing and has led institutions across business development, strategy as well as operations over the period of years.

v. The Management performed well under the able leadership of Maulikaben Ashokkumar Shah. The Company then planned to expand its network of distributors, and thus inducted Kaupilkumar Hasmukhbhai Shah and Shitalben Kaupilkumar Shah, immediately after the Covid -19 in December 2020. In January 2021, Maulikaben Anantkumar Shah and Jigar Ashok Hebra resigned from the Board.

Objects of the City Crops Agro Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet the working capital requirements of the company. ii. General Corporate Purposes. iii. To meet the Issue Expenses.
DRHP of City Crops Agro Limited IPO
RHP of City Crops Agro Limited IPO

City Crops Agro Limited IPO Details:

Open Date: Sep 26 2023
Close Date: Sep 29 2023
Total Shares: 6,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 15 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 25 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 10 2023

Promoters And Management:

Kaupilkumar Hasmukhbhai Shah aged 45 years is executive director and Promoter of the Company. He holds Bachelors Degree in Commerce from Gujarat University. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His leadership abilities have been instrumental in leading the core team of the Company. Shitalben Kaupilkumar Shah, aged 41 years, is a dynamic women entrepreneur heading executive operations at the Company and also one of the Promoters of the Company. She has earned her Bachelors in Commerce and Law from Gujarat University. Her experience has helped the Company to grow extensively over the period of time. She is playing vital role in formulating business strategies and effective implementation of the same. She is responsible for the expansion and overall management of the business of the Company. Her leadership abilities have been instrumental in leading the core team of the Company. Shivangi Bipinchandra Gajjar, aged 31 years, is a dynamic woman entrepreneur heading executive operations at the Company. She holds membership of Institute of Company Secretaries of India and also has earned her Bachelors in Commerce from Gujarat University. Her experience has helped the Company to grow extensively over the period of time. She is playing vital role in formulating business strategies and effective implementation of the same. She is responsible for the expansion and overall management of the business of the Company. Her leadership abilities have been instrumental in leading the core team of the Company.

Financials of City Crops Agro Limited IPO:

Particulars ( In Lakhs )
2020
2021
2022
2023
Revenue from Operations 0 349 1,775 2,461
Other Income 0 0 0.8 1.4
Total Revenue 0 349 1,776 2,462
Cost of materials consumed 0 337 1,680 2,373
Change In Inventory 0 0 0 -109
Employee benefits expenses 0 4 14 14
Other Expenses 0.02 3 26 48
EBITDA -0.02 4 55 136
Depreciation & Amortisation 0 0 0.44 0.57
Finance Cost 0 0 0 0
EBIT -0.02 4 55 136
OPM (%) 0.00% 1.20% 3.12% 5.53%
PBT -0.02 4 55 136
Tax -0.01 -0.1 7 18
PAT -0.02 4 48 117
NPM (%) 0.00% 1.24% 2.73% 4.75%
No.of Shares 163.16 163.16 163.16 163.16
EPS -1.12E 0.02 0.29 0.71
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
City Crops Agro Limited 25 1.17 0.71 34.8 25 41
MK Exim (India) Ltd 104 17 6.18 18.0 111 299
Alstone Textiles (India) Ltd 5 25 0.19 3.2 0.61 78
* All the data is as per FY23.

Lead Manager of City Crops Agro Limited IPO:

  1. Turnaround Corporate Advisors Private Limited

Registrar of City Crops Agro Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

City Crops Agro Limited A-208, Titanium City Centre, Near Sachin Tower, 100 Ft Ring Road, Satellite, Ahmedabad – 380015 Phone: +91 9428714136 Email: cs@citycropagro.in Website: https://citycropagro.in/

Discussion on City Crops Agro Limited IPO:

1 Comment

Leave a Reply