Sarveshwar Foods Limited IPO
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Objects of the Sarveshwar Foods Limited IPO:
The object of the issue are:
1. Working Capital Requirement.
2.General Corporate Expense.
3.Issue Expense.
Sarveshwar Foods Limited IPO Details:
| Open Date: | Mar 05 2018 |
| Close Date: | Mar 07 2018 |
| Total Shares: | 6467200 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Building Issue |
| Issue Size: | 54 Cr. |
| Lot Size: | 1600 Shares |
| Issue Price: | ₹ 83-85 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Mar 15 2018 |
Promoters And Management:
1. Mr. Suraj Parkash Gupta, aged 77 years, is the honorary Chairman of the Company. He has been the Chairman of the Company since February 1, 2016. He has more than forty (40) years of rich experience in the basmati rice industry.
2. Mr. Rohit Gupta, aged 48 years, is the Promoter and Managing Director of the Company. He has an extensive experience of more than two (2) decades in the basmati rice industry. Under the able guidance and directorship of Mr. Gupta, the Company was awarded the "Best Industry Award" from Mr. Omar Abdulla, the former Chief Minister of Jammu and Kashmir.
Company Business:
The Company is primarily engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. The company operations are based out of the Jammu Region in the State of Jammu and Kashmir.
They are one of the few Indian companies with a presence across the entire rice value chain, which includes procurement, storage, milling, sorting, packaging, branding and distribution.
Their product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice.
Subsidiary
The company has a subsidiary in the name of Himalayan Bio Organic Foods Private Limited which is engaged in “Organic” Business which includes procurement, storage, milling, sorting, packaging, branding and distribution of "Organic" Basmati and non-Basmati rice. "Organic" business organic food products like dry fruits and nuts, pulses & lentil, flours, porridge, spices and super foods like chia seeds, flax seeds and quinoa seeds. These organic food products are marketed and distributed under the brand "Nimbark". It also manages the flagship retail store in the name of "Nimbark - Living the Satvik Way" started during the month of May 2017 at Channi Himmat, Jammu for selling of organically
Capital Structure:
| Authorized Share Capital (30,000,000 Equity Shares@FV=10) | 300 Million |
| Issued, Subscribed,& Paid-up Share Capital Before Issue (18,100,000 Equity Shares@FV10) | 181 Million |
| Present Issue 64,67,200 Equity Shares@FV=10) | 64.672 Million |
| Reservation for Market Maker 3,24,800 Equity Shares@FV=10) | 3.248 Million |
| Net Issue to Public (64,67,200-3,24,800=6142400) | 61.424 Million |
| Paid Up Capital after the issue | 245.672 Million |
| Share holding pattern of the promoters | |||
| Sr.no | Name of the Promoter | No. of shares held | % of shares holding |
| 1 | Mr. Rohit Gupta | 18,088,800 | 99.94% |
| 2 | Mr. Suraj Parkash Gupta | 10200 | 0.06% |
Financials of Sarveshwar Foods Limited IPO:
| 1. Balance Sheet Snippet[ All Calculations are for FY 16-17] | |
| (i) Shareholders’ Fund[Equity] Value | 701.45 million |
| (ii) Asset | 3251.88 million |
| (iii) Liability | 2548.75 million |
| (iv) Debt/Equity | 3.63(high) |
| (v) RONW(%) | 18% |
| 2. Profit n Loss Snippet[ All Calculations are upto Mar 17] | |
| (i) Revenue of last 5 years is growing at approx. CAGR of 42.19%. | |
| (ii) Profit After Tax of last 5 years is growing at approx. CAGR of 24.05%. | |
| (iii)Margins(PBT/Reveune): 3-4% in the last 5 years. | |
| (iv) Weighted EPS of last 3 years= 7.09. | |
| (v) P/E= 12(looks reasonably price) at the Cap price of 85. Industry Average is 44. | |
| 3. Cash Flow Statement | |
| The company has generated positive cash flows in last 5 years. | |
Comparison With Peers:
| Peers | FV | PE | EPS | RONW |
| LT Foods Limited | 1 | 20.52 | 4.4 | 19% |
| KRBL Limited | 1 | 34.79 | 16.97 | 21% |
| Chaman Lal Setia Exports Limited | 2 | 21.96 | 7.44 | 26% |
| Sarveshwar Foods limited | 10 | 11.98 | 7.09 | 18% |
Recommendation on Sarveshwar Foods Limited IPO:
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Lead Manager of Sarveshwar Foods Limited IPO:
Registrar of Sarveshwar Foods Limited IPO:
Company Address:
Sarveshwar House,
Below Gummat, Jammu 180 001,
Jammu and Kashmir, India.
Phone: +91 191 2547391, +91 192 3220962
E-mail: investorrelations@sarveshwarrice.com
Website: www.sarveshwarrice.com
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20-Mar-2018 SARVESHWAR Sarveshwar Foods Limited INDIA MAX INVESTMENT FUND LTD SELL 4,09,600 70.50 –
20-Mar-2018 SARVESHWAR Sarveshwar Foods Limited KRISHEN BAL BUY 4,06,400 70.50