(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.
Promoters of Indo US Bio-Tech Limited Company are:
1.Mr. Jagdish Ajudia.
(i) Authorized Share Capital
( 60,00,000 shares at FV@10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(34,24,392 Shares at FV@10)
(iii) Present Issue
( 14,30,000 Shares at FV@10)
(iv) Reservation for Market Maker (74,000 Shares at FV@10)
(v) Net Issue to Public
(14,30,000-74,000= 13,56,000 Shares)
(vi) QIB & HNI Quota-6,78,000
(vii) Retail Quota- 6,78,000
(viii) Paid Up Share Capital after the issue
Financials of Indo US Bio-Tech Limited IPO as per DRHP:
1. Balance Sheet Snippet[ Financials as of Oct 2017]
(i) Shareholders’ Fund[Equity] Value
(iv) Debt/Equity[<1 ideal]
(v) Current Ratio[>1.5 ideal]
(v) Net Worth[Asset- Liability]
(vi) RONW[PAT/Net Worth] or ROE
(vii) Book Value or NAV[ Net Worth/No.of Shares]
(viii) P/B [<5 ideal]
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)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
Comparison With Peers:
Name of the Company
Indo Us Bio-Tech Ltd
Mangalam Seeds Ltd
Kaveri Seed Company Ltd
Nath Bio-Genes Ltd
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.