Indong Tea Company Limited IPO

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(i)  Originally, Indong Tea Company Limited was incorporated on the 28th day of December, 1990 in the name of Indong Tea Company Private Limited.

(ii)  It got its’ certificate of commencement & was converted from Private   Limited Company to Public Limited Company on the 14th day of January, 2022.

(iii) The Main Business of the company is manufacturing Tea. The Company have one Tea Garden i.e. Indong Tea Estate which is producing high quality CTC tea in Door’s region.

(iv) Indong is a magnificent Tea Garden in Western Dooars perched in the foothills of a Himalayan Range. Blessed with a bracing climate and a panoramic view of the mountains and meandering rivers, the garden was founded over a century ago by the British Planters under the famous Gillanders & Arbuthnot & Co. Even today, the garden retains many of the British legacies.

(v) In the year August 2014, the Company was taken over by Sri Hariram Garg & his Associates Company who are the Present Promoters of the Company. Under the Leadership of Sri Hariram Garg, He started putting his invigorating efforts to bring back the economic viability by way of massive investments in all spheres while at the same time taking a keen interest in the welfare of the workers. He invested fresh capital and installed new machinery which resulted in high yields.

(vi) The estate has started a well-planned Dairy Farm ” having a comfortable accommodation facility for around 75-80 bovines. The “Desi ” Cows have been brought from Gir, Gujarat which is considered to be the best species available in the country as its Milk, Urine and Cow-dung are replete with tremendous medicinal Properties. The Dairy Firm is also generating employment for the educated and eligible dependents of the permanent garden worker.


Objects of the Indong Tea Company Limited IPO:

The Objects of the Issue are: i. Funding Capital Expenditure towards Extension, Uprooting, and Infilling of Tea Plantation at Indong Tea Estate, Jalpaiguri, West Bengal ii. Funding Capital Expenditure towards the installation of additional plant and machinery for Tea Processing Unit at Indong Tea Estate, Jalpaiguri, West Bengal iii. To meet the working capital requirements iv. To meet the Issue Expenses v. General Corporate Purposes  

Indong Tea Company Limited IPO Details:

Open Date: Feb 09 2023
Close Date: Feb 13 2023
Total Shares: 5,004,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 13.01 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 26 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 21 2023

Promoters And Management:

i. Hariram Garg, aged 76 years is the managing director of the company. He is a planter in the real sense of the word, the founder of the group, born and brought up in the very heart of the tea belt in Northern India. The vast expanse of the lush tea gardens fascinated him since his early childhood. He gained great insight into the nature of tea- its cultivation and manufacture. Not content with blindly following age-old practices, Hariram Garg sought new techniques and modern methods of cultivation while retaining the effective ones to improve quality and increase productivity. He set up new tea plantation on virgin land and replanted the older sections. Inspired by his passion and foresight, the company progressed, not only manufacturing quality teas but also procuring, blending and packaging some of the finest tea blends. He created a company culture that is an amalgam of the old and the new, combining traditional values with modern technology - always quick to take advantage of technological advancements, emphasising the need for product excellence coupled with eco-friendliness and hygiene. ii. Madan Lal Garg, aged 73 years, is the younger brother of Sri Hariram Garg. Like Hariram Garg, He is also actively participated in Tea Garden of the Company. Apart of this tea Garden, he is also managing the state of affairs of other Tea Gardens like Debijhora Tea Estate & Azamabad Tea Estate. His views to implement new technique in the Tea Garden resulted in production of finest CTC Tea leaves. He has brought new technology in the state of affairs. Apart from the above, he is also holding position of directorship in the Group Companies. He has more than 35 years of experience in the field of Chemicals & Fertilizer and Tea. iii. Rajesh Garg, aged 56 years, is a commerce graduate from Calcutta University. He started his career managing the timber and wood processing plant, handling a large pool of workers and having first-hand experience of running a manufacturing unit. He is instrumental in setting up the Green Tea manufacturing unit in the Group’s Tea Estates. He has years of valuable business experience and is an integral part of the group. Actively involved in managing of the state of affairs of Tea Garden and actively focused on every movement of Tea Garden over 28 years’ experience in business of Tea.  

Financials of Indong Tea Company Limited IPO:

Particulars (in Lakhs) 2022 2021 2020
Revenue from Operations 1,949 2,307 1,549
Cost of Material Consumed 25 187 111
Change in Inventories 16 -36 -36
Employees Benefit Expenses 1,053 1,109 1,004
Other Expenses 522 628 426
EBITDA 333 419 44
OPM% 17.09% 18.16% 2.84%
Other Income 44 6 123
Depreciation 103 90 91
Finance Cost 161 210 198
PBT 113 125 -122
Tax -19 -3 0
PAT 132 128 -122
No. of Shares 149.94 149.94 149.94
EPS 0.88 0.85 NA

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP MCap
Dhunseri Tea & Industry Limited 349 -94 -89.6 -2.43 218 229
Tata Consumer Products Limited 12,425 1,015 10.15 64.4 730 67,827
Goodricke Group Limited 823 5 2.44 78.7 192 415
Neelamalia Agro Industries Ltd. 30 33 522.7 5.9 3500 218
Indong Tea Company Limited 19 1.32 0.88 30 26 25.9

Lead Manager of Indong Tea Company Limited IPO:

  1. Finshore Management Services Limited

Registrar of Indong Tea Company Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Indong Tea Company Limited Sikkim Commerce House, 4/1, Middleton Street, Kolkata – 700071 Phone: +91 33 4006 3601 Email: Website  

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