TBI Corn Limited IPO

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The company, originally known as “M/s The Best India,” was established as a Partnership Firm under the Partnership Act, 1932, on February 24, 2000. In June 2022, the firm was converted into a Limited Company under the Companies Act, 2013, and rebranded as TBI Corn Limited, with a Corporate Identification Number U15400PN2022PLC212368. Their journey has seen significant growth and transformation, positioning them as a leading player in the corn milling industry.

Products and Services

Their company specializes in producing high-quality Corn/Maize Grits and related products, including:
i. Cleaned and fat-free Corn Grits/Meal              ii. Corn Flakes             iii. Stone-free Broken Maize
iv. Corn Flour                                                             v. Turmeric Finger

These products are manufactured in a state-of-the-art, fully automated food processing unit compliant with ISO 22000:2018 standards.

Their products are now globally recognized, with exports to countries in the Gulf, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, and plans to expand into Europe and the US.

Infrastructure and Innovation

They operate multiple units in MIDC Miraj, occupying a total area of 15,812 square meters (170,200 sq. ft.), equipped with modern machinery. Their research and development teams are dedicated to continuous innovation, ensuring strategic growth and maintaining their commitment to quality.

Clientele and Market Potential

Their extensive client base includes renowned companies across India, catering to the corn starch and cattle feed industries. They are exploring further expansion in these sectors, leveraging their strong reputation and commitment to delivering high-quality corn products.

Commitment to Excellence

TBI Corn Limited is synonymous with quality, innovation, and international excellence in the corn milling industry. Their expanding global presence and dedication to providing premium corn products position them as a trusted leader, committed to meeting the needs of customers worldwide.

Objects of the TBI Corn Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Expansion of Existing Unit; ii. To Meet Incremental Working Capital Requirement; iii. General Corporate Purpose

TBI Corn Limited IPO Details:

Open Date: May 31 2024
Close Date: Jun 04 2024
Total Shares: 4,780,851
Face Value: ₹ 10 Per Equity Share
Issue Size: 44.94 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 90 - 94 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 07 2024

Promoters And Management:

Mr. Yogesh Laxman Rajhans is a pioneering entrepreneur and a co-founder of M/s. THE BEST INDIA, a partnership firm established in 2000. With strategic acumen and determination, he played a pivotal role in the firm's evolution from a Yeast processing unit to a leading player in the food processing industry. Under his guidance, the firm has expanded its operations, utilizing state-of-the-art technology and adhering to ISO 22000:2018 standards. Mr. Rajhans' vision has propelled the firm's products into both domestic and international markets, establishing strategic collaborations with major industry players. His commitment to innovation and quality has been instrumental in the firm's continued success and growth. Mr. Ninad Anand Yedurkar, an Instrumentation Engineering graduate with an MBA in Finance from NMIMS, Mumbai, honed his management skills at Citigroup in Mumbai and London. After over four years at Citibank UK, he returned to India and founded AceGrads, guiding over 15,000 students from rural and urban areas into top post-graduate courses and global corporations. At Wharton Business School, he incubated Prajwal Bharat, revolutionizing LED street lighting in Maharashtra. His initiative, Future Infinite, identifies and nurtures children's talents aged 7-14, while Aon Aquaculture uses bio-floc technology for sustainable fish production. As CFO of TBI Corn Ltd., he streamlines financial strategies to overcome working capital challenges. Ninad exemplifies entrepreneurial spirit, innovation, and sustainability across diverse sectors. Mrs. Asha Laxman Rajhans is a visionary leader and a cornerstone of The Best India group's success story. Since the firm's inception in 2000, she has played an instrumental role in shaping its trajectory. Her unwavering confidence in Mr. Yogesh and his vision for establishing a thriving unit in the maize industry has been the driving force behind TBI's achievements. In the early stages, Asha Ji took charge of support and maintenance staff, setting stringent standards for hygiene and cleanliness that remain integral to the organization's ethos. As TBI expanded, she took on the responsibility of recruiting, orienting, and integrating new staff into the existing structure, fostering a cohesive workforce. Asha Ji's dedication, leadership, and commitment to excellence have not only propelled TBI to new heights but have also inspired its promoters and employees to emulate her spirit of relentless pursuit of excellence. Under her guidance, The Best India group continues to thrive and set new benchmarks in the industry.

Financials of TBI Corn Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 6,696 10,029 13,930 10,105
Other Income 80 69 112 92
Total Revenue 6,776 10,097 14,043 10,197
Cost of materials consumed 5,922 8,594 11,829 7,087
Change in inventories -215 107 -383 893
Employees Benefit Expenses 43 62 66 48
Other Expenses 775 1,020 1,280 773
EBITDA 251 314 1,251 1,395
OPM (%) 3.70% 3.11% 8.91% 13.68%
Depreciation & Amortisation 71 83 62 60
EBIT 179 232 1,189 1,335
Finance Cost 153 181 260 310
PBT 27 50 929 1024
Tax 3 5 243 258
PAT 24 45 686 766
NPM (%) 0.35% 0.45% 4.89% 7.52%
No.of Shares 181.58 181.58 181.58 181.58
EPS 0.13 0.24 3.77 4.22

Comparison With Peers:

Note :- There are no listed companies in India that engage in a business similar to this Company.

Recommendation on TBI Corn Limited IPO:

Review and Recommendation of TBI Corn by team IZ is 6/10. 1. TBI Corn Limited started with the vision of establishing a significant presence in the corn industry. Initially focused on yeast processing, the company gradually diversified its operations to include the production of various corn-based products. 2. Product Range: The company specializes in producing high-quality corn/maize grits and related products, including: i. Corn Grits           ii. Corn Bran             iii. Broken Maize         iv. Processed Indian Yellow Maize v. Corn Flour         vi. Corn Flakes         vii. Corn Germ 3. Market Presence and Expansion: With a strong presence in both domestic and international markets, TBI Corn Limited serves countries in the Gulf, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, and is planning to expand into Europe and the US. The company has multiple units in MIDC Miraj, Maharashtra, equipped with modern machinery, occupying a total area of 15,812 SQMT (1,70,200 Sq. ft.). 4. SWOT Analysis: Strengths: i. Strong demand for products exceeding production capacity. ii. Abundant supply of raw materials. iii. Over 25 years of industry expertise. iv. Strategic location in Sangli, a prominent maize market. v. Deep knowledge of corn price fluctuations. vi. Strong customer relationships and increasing export sales. Weaknesses: i. Reliance on manual processes. ii. Lack of dedicated R&D facilities. iii. Missed opportunities to enhance by-products. iv. Limited funds for bulk purchasing advantages. v. Underutilization of corn bran potential. Opportunities: i. Adoption of automation for waste reduction and cost savings. ii. Attraction of quality-conscious clients, including MNCs. iii. Exploration of ethanol production for additional revenue streams. iv. Emphasis on value addition to by-products. v. Significant cost reduction opportunities by relocating closer to production and client locations. Threats: i. Labour issues impacting production efficiency. ii. Vulnerability to natural calamities and climate shifts. 5. Competitive Landscape: Despite facing competition from both organized sectors and regional players, TBI Corn Limited has maintained steady growth through strategic operational policies and a strong focus on quality. The company’s extensive experience and commitment to quality services have enabled it to establish a trusted name in the corn milling industry. 6. The Revenue has Increased from Rs.67 Crores in FY21 to Rs.139 Crores in FY23. 7. The EBITDA has Increased from 2 Crore in FY21 to 12 Crores in FY23. 8. The PAT has Increased from 24 Lakhs in FY21 to 6 Crores in FY23. 9. As per FY23, CFO/EBITDA is 0.79, As per FY24, EPS is 5.62, 10. Market Capitalization is 171 Crore & P/E is 16.70x based on FY24.

Lead Manager of TBI Corn Limited IPO:

  2. Swastika Investmart Limited

Registrar of TBI Corn Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

TBI Corn Limited A5/3 & A5/4, MIDC, Miraj, Tal- Miraj Dist- Sangli 416410 Phone: (0233) 2644950 Email: cs@tbicorn.com Website: https://tbicorn.com/

Discussion on TBI Corn Limited IPO:

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