Upsurge Seeds of Agriculture Limited IPO
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:
Upsurge Seeds of Agriculture Limited IPO Details:
|Open Date:||Jul 29 2022|
|Close Date:||Aug 02 2022|
|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:
Financials of Upsurge Seeds of Agriculture Limited IPO:
|Particulars (in Lakhs)||Mar-22||Mar-21||Mar-20|
|Cost of Materials Consumed||409||190||54|
|Change in Inventories||-2,252||-204||-124|
|Employee Benefits Expense||44||6||14|
|Administrative Expenses & Selling Expenses||52||26||6|
|Profit before tax||426||107||29|
|Total Tax Exps||29||22||7|
|No. of shares||70.60||70.60||70.60|
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%|