City Crops Agro Limited IPO
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:
City Crops Agro Limited IPO Details:
|Open Date:||Sep 26 2023|
|Close Date:||Sep 29 2023|
|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:
Financials of City Crops Agro Limited IPO:
Particulars ( In Lakhs )
|Revenue from Operations||0||349||1,775||2,461|
|Cost of materials consumed||0||337||1,680||2,373|
|Change In Inventory||0||0||0||-109|
|Employee benefits expenses||0||4||14||14|
|Depreciation & Amortisation||0||0||0.44||0.57|
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|