Nirman Agri Genetics Limited IPO

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i. Nirman Agri Genetics is one of the organized Agri-Input Company in India engaged in the business of production, processing and marketing of high-quality hybrid seeds, Pesticides, Bio-organic for different crops like corn, sunflower, cotton, paddy, grain sorghum, etc. and have recently forayed into micronutrients and bioproducts. They also produce non-hybrid seeds, primarily for paddy

ii. They have attained over four years of experience in this seed business through their Company and Proprietary concern of their Promoter and are working towards their objective of developing seeds having superior yield potential, drought tolerance, tolerance to pests and diseases etc.

iii. The company currently have production, outsourced processing and R&D facilities in Maharashtra at Nashik and Nimgul and in Gujarat as well as Madhya Pradesh. Their research mainly focuses on developing superior hybrids in different crops like corn, cotton, sunflower, paddy, bajra, etc.

iv. In the year 2022, they began to market bio-pesticides, bio-fertilizers, micronutrients, fertilizer mixtures & plant growth regulators under the name and style of “Nirman Agri Genetics”. Seeds, bio-fertilizers, micronutrients etc. are related products having the same end user i.e. the farmer, and are usually sold through similar dealer networks.

v. Their focus is to become a leading crop solutions provider to the farmer by supplying high yielding hybrid seeds and crop management through micronutrients, bioproducts etc. For achieving this, the company is engaging in research and development efforts in the areas of superior breeding programmes and biotechnology tools that will enable it to develop highly effective and differentiated hybrid seeds, micronutrients and bioproducts.

Competitive Strengths

i. Hybrid Seeds for wide range of Crops

ii. Founder-led experienced management team

iii. Established Brand

iv. Research & Development capabilities


Objects of the Nirman Agri Genetics Limited IPO:

The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: i. Funding additional Working capital requirements ii. Investment in Strategic Acquisition / Joint Venture iii. Purchase of Computer and other hardware iv. General Corporate Purposes

Nirman Agri Genetics Limited IPO Details:

Open Date: Mar 15 2023
Close Date: Mar 20 2023
Total Shares: 2,050,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Lot Size: 1200 Shares
Issue Price: ₹ 99 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 28 2023

Promoters And Management:

i. Pranav Kailas Bagal, aged 22 years is the Promoter & Managing Director of the Company. He has completed Diploma in Agriculture from National Backward Krushi Vidhyapeeth, Solapur, Maharashtra. He has around six years of experience in the field of Marketing of Agriculture inputs, managing customer relations and trade terms, managing manufacturing and supply chain strategies, managing costs and establish strategic partnerships with farmers, vendors and service providers etc. He has been associated with the Company as Director since August 2020 and has been elevated to Managing Director’s position in October 2022. Prior to starting the Company, he has done Agri-inputs business in Proprietary concern M/s. Nirman Agri Genetics from 2018 till the time same is taken over by the Company and before that he has worked as Marketing Manager with Shivam Krushi Sheti Udhyog Kendra engaged in whole sale and retail distribution of seeds, pesticides, fertilisers and agriculture related equipments. He is currently responsible for managing marketing and business development functions of the Company. ii. Avinash Bhimrao Bagal, aged 47 years is the Non-Executive Director of the Company. He is an under graduate. He has around 25 years of experience in the field of Agriculture. He has run his own proprietorship by the name of M/s. Shivam Krushi Sheti Udhyog Kendra engaged in whole sale and retail distribution of seeds, pesticides, fertilisers and agriculture related equipments since 1997 creating a reliable name amongst farmers. He has been associated with the Company as Director since November 2022. He is assisting the Company in creating a trusted names amongst farmers and suppliers. iii. Prakash Narayandas Sawana, aged 51 years is the Independent Director of the Company. He is a Law graduate from Nagpur University. He has around 25 years of experience of handling legal, financial and intellectual property matters. He has been associated with the Company as Director since October 2022 and has been appointed as Independent Director’s position to meet with corporate governance requirements. He will be assisting the Company in the field of compliance and legal matters.

Financials of Nirman Agri Genetics Limited IPO:

Particulars ( In Lakhs ) 7MFY23 2022 2021 2020
Revenue from Operations 1804 1838 778 258
Other Income 0 0 0 0.17
Total Revenue 1804 1838 778 258
Cost of Material Consumed 1434 1367 707 229
Employee Benefits Expense 40 77 26 9
Other Expenses 16 27 20 4
EBITDA 312 366 23 15
Depreciation & Amortisation 3 1 0.79 0.69
Finance Cost 0.62 1.18 0.23 0.04
EBIT 309 364 22 15
OPM (%) 17.34% 19.92% 3.04% 6.09%
PBT 308 363 22 15
Taxes 78 90.00 4 2
PAT 230 272 18 13
NPM (%) 12.77% 14.83% 2.39% 5.05%
No.of Shares 59 59 59 59
EPS 3.86 4.57 0.31 0.21
P/E 25.61 21.64 317.27 451.51

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
Nirman Agri Genetics 30 4 14.94 6.63 99 59
Upsurge Seeds of Agriculture 59 0.28 61 7.68 326 230
Bombay Super Hybrid Seeds 222 16 155 1.54 241 2,525
Shreeoswal Seeds and Chemicals Limited 262 5 94.5 3.17 337 514
Note: Financials of Fy23 is taken for comparison with Nirman Agri Genetics except for Upsurge Seeds of Agriculture for which Fy22 data is taken.  

Recommendation on Nirman Agri Genetics Limited IPO:

Review and Recommendation of Nirman Agri Genetics by IZ team is 5/10 1. Nirman Agri Genetics Ltd, an organised Indian agri-input company, produces, processes, and markets high-quality hybrid seeds, pesticides, bio-organic, and micronutrients for maize, sunflower, cotton, paddy, grain sorghum, and others. Non-hybrid paddy seeds are also produced. 2. With their Company and Promoter's Proprietary concern, they have over four years of seed business expertise and are aiming to develop seeds with high production potential, drought tolerance, pest and disease resistance, etc. 3. Production, outsourced processing, and R&D facilities are in Nashik, Nimgul, Gujarat, and Madhya Pradesh. They aim on creating better hybrids of corn, cotton, sunflower, paddy, bajra, and other crops. 4. Their R&D team markets all seed variants under the brand name "Nirman Agri Genetics." They expect their R&D facilities to boost their company. 5. "Nirman Agri Genetics" began selling bio-pesticides, bio-fertilizers, micronutrients, fertiliser combinations, and plant growth regulators in 2022. 6. Their Products :- i. Sunflower                           ii. Corn                                  iii. Cotton iv. Bajra                                   v. Okra                                  vi. Tomato vii. Paddy                            viii. Grain Sorghum                ix. Watermelon x. Mustard                             xi. Castor                              xii. Chilies 7. Much of the Indian seed market is unorganised and fragmented with many small and medium-sized companies. Commercial seed firms compete with other seed companies, agrochemical companies, subsidiaries or divisions of huge multinational corporations, and domestic competitors. 8. They compete with other seed makers on availability, range, qualities, including disease and pest tolerance, price, reputation, regional demands, customer service, and convenience. 9. They compete domestically and internationally in specific sectors, segments, subsegments, and locations. Quality, cost, delivery, technological capability, etc. are competition factors. Each crop has different competition. 10. The Revenue has Increased from Rs.2 Crore in FY20 to Rs.18 Crore in FY22. 11. The EBITDA has Increased from 15 Lakhs in FY20 to 3 Crore in FY22. 12. The PAT has Increased from 13 Lakhs in FY20 to 2 Crore in FY22. 13. As per FY22, Debtors Days is 92. 14. As per FY22, EPS is 4.57,  Market Capitalization is 59 Crore & P/E is 21.64x.  

Lead Manager of Nirman Agri Genetics Limited IPO:

  1. First Overseas Capital Limited

Registrar of Nirman Agri Genetics Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Nirman Agri Genetics Limited Vedant Apartment, Near Reliance Shopee, Dindori Road, Panchavati, Nashik – 422 003 Phone: +91 253 2943101 Email: Website

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