KN Agri IPO
About KN Agri IPO
Incorporated in 1987, K N Agri is an agro-based Company, involved primarily in the business of (a) solvent extraction & oil refining and (b) trading of various agro-commodities. The wide range of processed and manufactured products includes soya de-oiled cake (soya meal), Hipro Soya Meal, soya refined oil, soya crude oil, degummed oil, soya lecithin, acid oil, soya husk, cotton seed oil, refined rapeseed oil and rapeseed de-oiled cake.
Under the agro-commodities business, K N Agri trade in various agro commodities such as maize, gram, pulses, sugar, soyabean, wheat etc.
They have three strategically located plants in the state of Madhya Pradesh comprising of three solvent extraction plants, two oil refineries and one flour mill. The location of the plants gives them the competitive edge over other players in terms of procurement and availability of major raw material (i.e. soyabean seeds).As on the date of this Draft Red Herring Prospectus, they have cumulative solvent extraction capacity of 3,75,000 TPA, edible oil refining capacity of 60,000 TPA and flour milling capacity of 24,000 TPA.
The two manufacturing units, namely, Khandwa Oils – Unit I and Unit II situated in Khandwa, M.P., are spread in the wide area of around 20 acres, while the another unit located in Kheda, Itarsi, M.P. is spread around an area of 10 acres. All the units have a well-equipped laboratory, modern technology and testing equipments with supporting environment and facilities, to ensure that the products conforms with the pre-determined food standards.
Certification and Awards
The Company has received 2nd highest processor award for the F.Y. 2017-18 from SOPA. We possess ISO 9001: 2015 and ISO 22000:2018 certificate in respect of our Khandwa Oils Unit I, certifying that the Quality Management System and Food & Safety Management System are in accordance with the requirements of ISO 9001:2008 and ISO 22000:2018 respectively in regards to manufacture, supply and export of our soyabean products. Similarly, they possess ISO 22000:2018 certificate for the unit situated in Kheda, Itarsi.
They also possess Halal India Certificate for Kheda unit and Khandwa Oils Unit I, certifying that certain of our soya products are in accordance with Shariah (Islamic) Board Guidelines.
Presently, they market the products to around 15 states in India of which majority portion of the revenue comes from the state of Madhya Pradesh, Gujarat, West Bengal and Maharashtra.
Some of the esteemed customers includes names such as Adani Wilmar Limited, Cargill India, Bunge India and Ruchi Soya. The major customers include agri-commodities dealers, trade houses, export houses and FMCG Companies.
They also export the products to countries such as Netherlands, Singapore, Bangladesh and Nepal. They market refined oil primarily under our registered brands “CLASSIC” and “KHAN-PAN”.
They also have four wind energy power plants of combined capacity of 4.60 MW in the state of Madhya Pradesh, Maharashtra and Rajasthan. They have entered into agreements with respective state government entities for exclusive sale of power, which is generated from the three windturbine generators located in the district of Sangli and Nandurbar (Maharashtra) and Jaisalmer (Rajasthan). The power generated from the wind mill situated in Dewas, Madhya Pradesh is taken in use for captive purpose. The Company has outsourced all operations and maintenance activities relating to windturbines to third parties.
Objects of the KN Agri IPO:
KN Agri IPO Details:
|Open Date:||Mar 15 2022|
|Close Date:||Mar 17 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||49.38 Cr.|
|Lot Size:||1600 Shares|
|Issue Price:||₹ 71-75 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Mar 28 2022|
Promoters And Management:
Financials of KN Agri IPO:
|Particulars (in Cr.)||Sep-21||Mar-21||Mar-20||Mar-19|
|Cost of Material Consumed||123||678||428||864|
|Purchases of Stock-In-Trade||418||496||353||203|
|Changes in Inventories||-2||-6||-24||63|
|Employee Benefits Expense||3||7||7||6|
|Profit before tax||22||35||18||31|
|Total Tax Exps||5||8||4||9|
|No. of shares||2.50||2.50||2.50||2.50|
|EPS in Rs||9.14||14.22||7.17||11.62|
Comparison With Peers:
|Name of the Company||Face Value||EPS||PE||RoNW||Book Value|
|KN Agri Resources Ltd||10||17.6||4.3||9.66%||70.4|
|Ruchi Soya Industries Ltd||2||30||26.8||17.60%||149|
|Gujarat Ambuja Exports Ltd||1||19.2||12.4||22.70%||81.5|
|Gokul Agro Resources Ltd||2||6.2||12.2||13.80%||26.7|
|Kriti Nutrients Ltd||1||2.05||23.4||15.90%||20.7|