Continental Seeds and Chemicals Limited IPO

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Background of the Company

(i) Our Company was originally incorporated at New Delhi as “Terai Beej Private Limited” on 22nd June, 1983 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Delhi & Haryana. Consequent, upon the conversion of our Company into public limited company, the name of our Company was changed to “Terai Beej Limited” and fresh certificate of incorporation dated 7th May, 1986 was issued by the Asstt. Registrar of Companies, Delhi & Haryana. Subsequently, the name of the Company was changed to “Continental Seeds and Chemicals Limited” vide Fresh Certificate of Incorporation dated 8th May, 1986 issued by Addl. Registrar of Companies, Delhi & Haryana.
(ii) Our Company is engaged in the business of developing, processing, grading and supplying of all kind of agricultural foundation and certified seeds and trading of Mentha Oil. Our Company is engaged in the whole process of processing in varieties of seeds, foundation seed and processing of the same into certified seeds. Seed processing is a vital part of the seed production needed to move the improved genetic materials of the plant breeder into commercial channels for feeding the rapidly expanding world population. The farmer must get the quality seed that is free from all undesired materials because farmer’s entire crop depends on it.

 

Continental Seeds and Chemicals Limited IPO Stock Quote & Charts

13.65

+5.00%

  • Open: 13.65
  • High - Low: 13.65 - 13.65
  • Previous Close: 13.00
  • Total Traded Volume: 4000
  • Updated On: 28-Aug-2018

Objects of the Continental Seeds and Chemicals Limited IPO:

1. To part finance working capital requirements of the Company. 2. To meet General corporate purposes. 3. To meet the expenses of the Issue.

Continental Seeds and Chemicals Limited IPO Details:

Open Date: Mar 21 2018
Close Date: Mar 23 2018
Total Shares: 16,20,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed price
Issue Size: 4.21 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 26 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 04 2018

Promoters And Management:

Mr. Praveen Rastogi: aged 38 years, is Promoter and Managing Director of our Company. He holds the Bachelor degree in Commerce. He is having 15 years of Experience in in the field of agro farming, seeds processing and related filed. He looks after day-to-day routine operational activities of our Company and formulation of business policies, strategies etc. He guides company in its growth strategies. He has been on the board of Company since December, 2011.

Capital Structure:

Authorized Share Capital (65,00,000 shares at FV@10) 6.5 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (43,81,685 Shares at FV@10) 4.381 cr
Present Issue (16,20,000 Shares at FV@10) 1.62 cr
Reservation for Market Maker 84,000 Shares at FV@10) 84 lakh
Net Issue to Public 16,20,000-84,000=  15,36,000Shares) 1.536 cr
Retail Quota(<2 Lkah)[7,68,000 Shares] 50%
HNI & QIB Quota(>2 Lakh)[7,68,000 Shares] 50%
Paid Up Capital after the issue 6.001 cr
Sr.no Name of the Promoter No. of shares Average cost of aquistion
1 Mr. Praveen Rastogi 1665475 2.86

Financials of Continental Seeds and Chemicals Limited IPO:

 1. Balance Sheet Snippet[ Calculation for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 566.30 lakh
      (ii) Asset 1266.44 lakh
      (iii) Liability 700.15 lakh
      (iv) Debt/Equity 1.23( high)
      (v)  Net Worth(Asset- Liability) 566.30 lakh
     (vi)  RONW(PAT/Net Worth) 8%
     (vii) P/B 2.75(reasonable)
2. Profit n Loss Snippet
(i) Revenue of last 3 years is stagnated at CAGR of 1.29%. (ii) PAT of last 3 years is growing at CAGR of 31.09%[excellent]. But in 2017 the profit increases 3 times as compared to previous year on flat sales which raises concern. (iii)Margins(PBT/Reveune): .3 to 1.2% in last 3 years. The company has low margin business. (v) Annualized EPS(post issue)= .70
(v)  Annualized P/E(post issue)=37(fully priced) at the cutoff price of 26
3. Cash Flow Statement The company is not generating positive cash flow continuously in the preceding years which may affect company's growth in future.

Comparison With Peers:

Sr.No Name of the Company FV EPS PE RONW
1 Mangalam Seeds Limited 10 5.98 25.5 13.18
2 Continental Seeds and Chemicals Ltd 10 0.7 37 8

Recommendation on Continental Seeds and Chemicals Limited IPO:

Rating:4/10. 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Continental Seeds and Chemicals Limited IPO:

  1. Navigant Corporate Advisors Limited

Registrar of Continental Seeds and Chemicals Limited IPO:

  1. MAS Services limted

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Continental Seeds and Chemicals Limited IPO as on
23-Mar-2018 19:50:01 IST

Category No.of shares offered No. of shares bid
810,000 432,000
810,000 1,816,000
- -
1,620,000 2,248,000
QIBs No
QIBs+HNIs Subscription 0.53X
Retail Subscription 2.24X
Total Subscription 1.39X

Discussion on Continental Seeds and Chemicals Limited IPO: