Indo US Bio-Tech Limited IPO

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Indo US Bio-Tech Limited IPO

(i) Gujarat based Indo US Bio-Tech Limited, is engaged in the business of breeding products, processing and marketing of high performing open-pollinated and hybrid agricultural seed varieties & seed testing, soil & water testing.

(ii) The company has its own laboratory for seed testing at Junagadh.
The company started In-House Research and Development (R&D) unit at Modasa, District – Sabarkantha (Gujarat) for research activities to produce better and different varieties of seeds. On September 23, 2011, it got the recognition up to March 31, 2014, for In-House R&D from Government of India, Ministry of Science and Technology, Department of Scientific and Industrial Research Technology Bhavan, New Delhi (DSIR).

(iii) In the initial stage, the company was engaged in producing different varieties of oilseeds and pulses seeds, later on, it also added vegetable, spices and cereals seeds to its basket. In the year 2014, it shifted its R&D unit Gandhinagar to carry on its research activities.

(iv) As on January 31, 2018, Indo US Bio-Tech has 45 Employees in various departments. Indo Us Bio-Tech Limited consider
(a) Its R&D, which confers competitive advantages to the farmers, and
(b) its scientific activities, as the key success factors in developing and commercializing several superior hybrids.
The R&D center of INDO US BIO-TECH LIMITED has been accorded recognition by the department. We got certification of registration as seed importer from “NATIONAL SEEDS CORPORATION LTD.” We have got approval from DSIR (Department of Scientific & Industrial Research) New Delhi for research & development programme which is held at our R&D center.
R & D is focused to meet the requirement of farmers, markets and agro-industries to provide cost –effective technologies. The company consistently focuses on the changing preferences and needs of farmers, adding value to its products, and cautiously addressing the environmental concerns.

(v) INDO US BIO-TECH LIMITED believes in increasing the productivity by using methods that are environmentally compatible and economically sound by integrating new technological developments like biotechnology and genetic engineering with conventional plant breeding methods.

Indo US Bio-Tech Limited IPO Stock Quote & Charts

58.00

+0.09%

  • Open: 58.00
  • High - Low: 58.00 - 58.00
  • Previous Close: 57.95
  • Total Traded Volume: 2000
  • Updated On: 22-Nov-2018

Objects of the Indo US Bio-Tech Limited IPO:

Objectives of

Indo US Bio-Tech Limited IPO

are: 1. To meet Incremental Working Capital Requirement 2. General Corporate Purpose 3. Meeting Public Issue Expenses

Indo US Bio-Tech Limited IPO Details:

Open Date: Apr 30 2018
Close Date: May 03 2018
Total Shares: 14,30,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 7.293 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: May 11 2018

Promoters And Management:

Promoters of Indo US Bio-Tech Limited Company are: 1.Mr. Jagdish Ajudia.

Capital Structure:

(i) Authorized Share Capital ( 60,00,000 shares at FV@10) 6 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (34,24,392 Shares at FV@10) 3.424 Cr
(iii) Present Issue (  14,30,000  Shares at FV@10) 1.4 Cr
(iv) Reservation for Market Maker (74,000 Shares at FV@10) 7.4 Lacs
(v) Net Issue to Public (14,30,000-74,000=  13,56,000 Shares) 1.356 cr
(vi) QIB & HNI Quota-6,78,000 50%
(vii) Retail Quota- 6,78,000 50%
(viii) Paid Up Share Capital after the issue 4.824 Cr

Financials of Indo US Bio-Tech Limited IPO:

 
 1. Balance Sheet Snippet[ Financials as of Oct 2017]
       (i) Shareholders’ Fund[Equity] Value 463.17 Lacs
      (ii) Asset 2055.95 Lacs
      (iii) Liability 1592.78 Lacs
      (iv) Debt/Equity[<1 ideal] 3.43(high)
      (v) Current Ratio[>1.5 ideal] 1.19
      (v)  Net Worth[Asset- Liability] 463.17 Lacs
     (vi)  RONW[PAT/Net Worth] or ROE 16%
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 31
     (viii) P/B  [<5 ideal] 1.65(reasonable)
2. Profit n Loss Snippet (i) The Reveune of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 13.25%. (i) The PAT of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 21.38%[ Excellent]. However, the profit of first 7 months of FY18 looks inflated at .74 Cr on Revenue of 15.88 Cr which raises concern. (iii) The EBITDA Margins of the company for FY13( 4.95%), FY14(2.78%), FY15(3.52%), FY16(3.15%) and FY17(3.5%). The company's EBITDA margins as almost flat in last 5 years. (iv) P/B(post issue)= 2.125 (v) Annualized EPS(post issue)= 2.6 (vi) Annualized P/E(post issue)=19.61 at the cutoff price of 51.
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 6.78 -257.81 14.4 45.86 -63.38
(ii) Net Cash Generated from Investment -16.84 -10.57 -17.43 -20.81 -35.71
(iii) Net Cash Generated from Financing Activity 4.72 278.08 3.29 -24.85 98.96
(iv) Total[ (i)+(ii)+(iii) ] -5.34 9.7 0.26 0.2 -0.13
(v) Cash and Cash Equivalents at the Beginning of the Year 10.42 0.73 0.47 0.26 0.39
(vi) Cash and Cash Equivalents at the end of the Year 5.08 10.43 0.73 0.46 0.26

Comparison With Peers:

Name of the Company FV EPS PE RONW
Indo Us Bio-Tech Ltd 10 2.6 19.61 16%
Mangalam Seeds Ltd 10 5.98 18.39 3.27%
Kaveri Seed Company Ltd 2 11.36 43.43 7.66%
Nath Bio-Genes Ltd 10 10.17 46.55 11.83%

Recommendation on Indo US Bio-Tech Limited IPO:

Review and Recommendation of

Indo US Bio-Tech Limited IPO

from our side is: The Company has flat Margins in last 5 years and the Profit of the First seven months of FY18 also looks inflated before the issue. Rating: 3/10. 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Indo US Bio-Tech Limited IPO:

  1. Swastika Investmart Limited

Registrar of Indo US Bio-Tech Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Indo US Bio-Tech Limited 309, Shanti Mall, Satadhar Char Rasta, Opp. Navrang Tower, Sola Road, Ahmedabad - 380 061 Phone: +91 79 2749 1807 Email: compliance@indousagriseeds.com Website: www.indousagriseeds.com

Bid Details of Indo US Bio-Tech Limited IPO as on
03 May 2018 | 11:59:10 PM

Category No.of shares offered No. of shares bid
678,000 13,296,000
678,000 13,480,000
74,000 74,000
1,430,000 26,850,000
QIBs Yes
QIBs+HNIs Subscription 19.61X
Retail Subscription 19.88X
Total Subscription 19.75X

Discussion on Indo US Bio-Tech Limited IPO:

    In continuation to the Exchange’s notice no. 20180510-25 dated Thursday, May 10, 2018 Trading Members are hereby informed that the trading in the equity shares of Indo Us Bio-Tech Limited (Scrip Code: 541304) shall be transferred from Trade for Trade segment (MT Group) to Rolling segment with effect from May 25, 2018. Accordingly, the dealings in the equity shares of the company will be shifted under M Group.

    INDO US BIO-TECH LIMITED is well growing seeds manufacturing company in India. It has their own DSIR approved R&D Center in Gujarat. I have visited their center with my village farmer team. INDO US BIO-TECH are always try to satisfy their farmer with seeds,crops, farming training and help for growing wealth of farmer. INDO US BIO-TECH is coming with their SME IPO on 30th April 2018. Issue closes on 3rd May 2018. I read prospectus on their website.

    Emerge IPO Alert :

    *Akash Exploration Services*
    Date – 17 to 19 April 2018
    Price – 56
    Lot – 2000
    Size – 10.08 crs
    LM – Monarch
    Registrar – Skyline