Nekkanti Sea Foods Limited IPO

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Nekkanti Sea Foods Limited IPO

Nekkanti Sea Foods Limited is one of the largest exporters of seafood from India and has been in this business for over two decades. Nekkanti, from a humble beginning in the seafood industry, integrated backward by venturing into deep sea trawling and processing seafood. In 1985, Nekkanti started its operations by taking up a leased processing facility in Kakinada. Later in 1989, NSFL setup its own processing facility in Visakhapatnam. Nekkanti has since then never looked back.
In its strategy to diversify into new markets and augment its existing capacity, it has commissioned a modern State-of-the-Art processing plant, which is strategically located in the aquaculture heartland of India. Currently, NSFL is operating 3 USFDA approved factories located in Andhra Pradesh, India.
In Fiscal 2017, we had a volume share in the Indian shrimp industry of 2.49% with a value share of 3.31% of the
total exports in such periods (Source: Based on information derived from the CRISIL Report). Our revenues from
operations have grown at a CAGR of 29.33% from Fiscal 2013 to Fiscal 2017. In comparison, India’s shrimp
exports grew at a CAGR of 15% over fiscal 2013 and 2017
Shell-on Products. These products include head-on shell-on shrimps and headless shell-on shrimps. In Fiscal 2017 and in the nine months ended December 31, 2017, shell-on products accounted for 9.71% and 10.32%, respectively, of our revenue from operations in such periods.59
Peeled Products. These products are the ready-to-cook range of shrimp and include raw shell-on easy peel, raw peeled deveined tail-on, and raw peeled deveined tail-off shrimps. In Fiscal 2017 and in the nine months ended December 31, 2017, peeled products accounted for 80.39% and 76.19%, respectively, of our revenue from operations in such periods.
Cooked Products. These products are a ready-to-eat range of shrimp and include cooked easy peel, cooked peeled deveined tail-on and cooked peeled deveined tail-off products. In Fiscal 2017 and in the nine months ended December 31, 2017, cooked products accounted for 7.85% and 12.80%, respectively, of our revenue from operations in such periods.
Breaded and Other Products. Breaded shrimps are value-added products that involve additional processing, such as coating with breadcrumbs and frying before being individually quick frozen (“IQF”). Other products include butterfly, skewered and Nobashi shrimp products. In Fiscal 2017 and in the nine months ended December 31, 2017, breaded and other products accounted for 2.05% and 0.69%, respectively, of our revenue from operations in such periods.

Objects of the Nekkanti Sea Foods Limited IPO:

Objective of

Nekkanti Sea Foods Limited IPO

are: Offer for Sale Company will not receive any proceeds from the Offer for Sale. Objects of the Fresh Issue 1. Funding the working capital requirements of our Company 2. General corporate purposes

Nekkanti Sea Foods Limited IPO Details:

Face Value: ₹ 2 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

Promoters of Nekkanti Sea Foods Limited Company are: Nekkanti Seetha Ramachandra Murty, is the Chairman and Whole-time Director of our Company. He has completed his matriculation. He has more than 40 years of experience in aquaculture business. He has been associated with our Company since its incorporation, having been first appointed to our Board in 1983. He oversees the overall operations of our Company. He has been inducted as National Committee Member in the Seafood Exporters Association of India. Nekkanti Venkat Rao is the Managing Director of our Company. He holds a bachelor’s degree in business with major in management from Virginia Polytechnic Institute and State University, United States of America. He has been associated with our Company since 2005 and was first appointed to our Board in 2006. He has over 11 years of experience in production and marketing and was involved in the export business of our Company. Nekkanti Mahesh, is the Joint Managing Director and Whole-time Director of our Company. He holds a master’s degree in science from Rochester Institute of Technology, the United States of America in 2009. Prior to joining our Company, he worked in research and development team of GE Inspection Technologies. He has experience in overall operations of our company and he has been involved in factory capacity expansion, production, and human resource management. He has been associated with our Company since 2010, and was first appointed to our Board in 2018.

Financials of Nekkanti Sea Foods Limited IPO:

Particulars For the year/period ended (in Rs. Lacs)
31-Dec-2017 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 4,813.49 3,698.60 2,076.26 1,874.43 1,721.79
Total Revenue 10,856.87 8,401.54 7,797.63 6,941.25 5,870.61
Profit After Tax 1,170.44 553.61 297.06 474.97 328.46

Recommendation on Nekkanti Sea Foods Limited IPO:

Review and Recommendation of

Nekkanti Sea Foods Limited IPO

from our side is: Under Analysis. We'll update it soon here.

Lead Manager of Nekkanti Sea Foods Limited IPO:

  1. Motilal Oswal Investments Advisors Private Limited

Registrar of Nekkanti Sea Foods Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

Nekkanti Sea Foods Limited D. No. 3-16/3, Ocean Drive Layout, Gudlavanipalem, Opposite Bhulokamatha Temple, Sagar Nagar, Visakhapatnam – 530 045 Phone No. + 91 891 2526 971 Fax No. +91 891 2567 504 E-mail: cs@nekkantiseafoods.com Website: www.nekkantiseafoods.com

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