Upsurge Seeds of Agriculture Limited IPO

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i. Upsurge Seeds is a technology driven seeds manufacturing Company engaged in business of growing, developing, processing and marketing of variety of seeds for a range of field crops and vegetables. The company is primarily involved in seed processing wherein the improved genetic materials of the breeder seed is grown and multiplied into foundation seed. Thereafter, the foundation seed undergoes next level of processing in which the foundation seed is grown and multiplied into commercial seeds, which is then sold in market for crop production.

ii. They have different variants of seeds being sold for each crop depending upon suitability of its seeds for varying agro-climatic conditions, such as water availability, crop duration and soil attributes, across different geographic regions in India.

iii. Breeder seeds are genetically pure seed with physical purity produced from basic nucleus seed stock and procured from original breeder. Some of the state Government agricultural universities from which company procure breeder seeds include Mahatma Phule Krishi Vidapeeth, Rajasthan Agricultural Research Institute, Indian Agricultural Research Institute etc.

iv. The company enters into seed grower production agreement with seed growing farmers for leasing thier land on lease rentals to develop and produce the foundation and commercial seeds. Under these agreements, the farmer is engaged to carry out agricultural operations over the leased agricultural land, however the ownership of the entire crop and the risk of crop failure is retained with the company. The farmers are compensated for their services of producing such seeds and for all production expenses such as land preparation, irrigation, sowing, fertilization, combat against pests and diseases, weeding, harvesting, thrashing etc.

v. The company produced seeds for more than 40 different field crops and vegetables and have operations across India covering Gujarat, Maharashtra, Rajasthan with more than 75 varieties of Crops. The product portfolio includes crop seeds for Groundnut, Wheat, Cumin, Green Gram, Black Gram and vegetable seeds for Onion, Coriander Seeds, Fenugreek etc.

vi. Competitive Strengths:

  • Wide Range of Seeds and its Variants
  • Quality Assurance
  • Customer Satisfaction
  • Experienced Promoter supported by dedicated Management team
  • Proven track record of robust financial performance

Objects of the Upsurge Seeds of Agriculture Limited IPO:

The company intend to utilize the proceeds of the Issue to meet the following objects: - 1. To meet Working Capital requirements 2. General Corporate Purpose 3. To meet issue expenses
DRHP of Upsurge Seeds of Agriculture Limited IPO

Upsurge Seeds of Agriculture Limited IPO Details:

Open Date: Jul 29 2022
Close Date: Aug 02 2022
Total Shares: 1,900,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 22.81 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 120 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 11 2022

Promoters And Management:

i. Mr. Arvindkumar Jadavjibhai Kakadia, aged 39 years, is the Promoter, Managing Director of the Company. He was originally appointed on the board on October 30, 2017 and further Re-designated as Managing Director vide AGM dated November 30, 2021. He is associated and actively engaged in managing the company since its incorporation. He has more than 23 years of experience in agriculture industry. He is playing vital role in formulating business strategies and effective implementation of the same. He is entrusted with the responsibilities of expansion and overall management of the business of the Company. He is involved in taking major policy decision of the Company and has been actively involved in taking various approval regarding seeds and other matters from State and Central Government. He is also involved in the research & development of Agriculture seed and hybrid seed. ii. Mr. Viken Jentilal Kakadiya, aged 29 years, is the Promoter & Whole Time Director of the Company. He was originally appointed on the board on October 30, 2017 and further Re-designated as Whole Time Director vide AGM dated November 30, 2021. He has an experience of around 10 years in agriculture industry. He looks after the production, Procurement and business development of the Company. He overviews all over procedure on seeds from raw seeds to make it truthful seed. He is entrusted with the responsibility of looking after of admin and Human Resource department of the Company. He is also handling Marketing and distribution activities of the Company. iii. Mrs. Sonalben Arvindbhai Kakadiya, aged 37 years is the Promoter, Whole Time Director & CFO of the Company. She was originally appointed on the board on October 30, 2017 and was appointed as CFO of the company with effect from 30.11.2021. She has been further Re-designated as Whole Time Director vide EGM dated April 09, 2022. She holds a Bachelor of Arts from Saurashtra University. She is entrusted with the responsibilities of looking after the accounting and finance function of the Company. She has been entrusted to fulfill the funding requirement of the Company. She holds an experience of around 5 years in agriculture Industry.

Financials of Upsurge Seeds of Agriculture Limited IPO:

Particulars (in Lakhs) Mar-22 Mar-21 Mar-20
Sales 7,564 6,262 1,758
Cost of Materials Consumed 409 190 54
Purchases 7,479 5,296 1,745
Change in Inventories -2,252 -204 -124
Production Expense 1,280 784 0
Employee Benefits Expense 44 6 14
Administrative Expenses & Selling Expenses 52 26 6
Operating Profit 552 164 63
OPM % 7.30% 2.62% 3.58%
Other Income 13 28 6
Finance Cost 58 34 25
Depreciation 82 31 15
Profit before tax 426 107 29
Total Tax Exps 29 22 7
Net Profit 396 85 22
NPM % 5.24% 1.36% 1.25%
No. of shares 70.60 70.60 70.60
EPS 5.61 1.20 0.31

Comparison With Peers:

Name of the Company Sales (In Cr.) PAT (In Cr.) EPS PE RoCE Mcap (In Cr.) Returns 3Y Sales Growth (3Y)
Upsurge Seeds of Agriculture Ltd (2 Year) 76 4.00 5.61 21.39 30.37% 85 - 330%
Bombay Super Hybrid Seeds Ltd. 194 10 11.4 37.3 19% 448 447% 159%
Continental Seeds and Chemical Ltd 98 0.19 0.19 36 4.02% 8 -3% 19%
Kaveri Seed Company Ltd 915 209 35.8 13.5 17.10% 2,815 7% 19%
Mangalam Seeds Ltd 40 5 4.67 19.9 13.00% 102 63% 25%

Lead Manager of Upsurge Seeds of Agriculture Limited IPO:

  1. Finshore Management Services Limited

Registrar of Upsurge Seeds of Agriculture Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Upsurge Seeds of Agriculture Limited Plot No. 17, Shreenathji Industrial Estate, National Highway 8-B, Kuvadva, Rajkot, Gujarat 360023 Phone: +91- 96879 65596 Email: info@usalimited.in Website: http://www.usaseedslimited.com/

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