Vishwas Agri Seeds Limited IPO

Apply 0
Avoid 0

Vishwas Agri Seeds Ltd began its journey with a modest seed processing unit. Today, it stands as a prominent player in the agriculture sector, processing high-quality seeds and distributing them to farmers across India under the brand name “Vishwas.” Through years of dedicated service and innovation, Vishwas Agri Seeds has established itself as a trusted name in the agriculture industry, offering a wide range of crop seeds to cater to the diverse needs of the farming community.

Evolution and Expansion

The company’s genesis was marked by the establishment of a small-scale seed processing unit in Gondal, Rajkot. With a commitment to quality and excellence, Vishwas Agri Seeds quickly expanded its operations. In June 2023, the company moved from its initial Rajkot unit to a larger, more technologically advanced facility in Ahmedabad. This new seed processing unit, along with a warehouse and cold storage facility, is set on a 5-acre plot, signifying the company’s growth and its forward-looking vision.

Technological Advancements

The Ahmedabad facility is a testament to Vishwas Agri Seeds’ commitment to innovation. Equipped with optical sorting machines, the unit ensures that only the best seeds, free from defects and impurities, reach the farmers. The seeds are further treated with fungicides and insecticides, safeguarding them against pathogenic organisms and storage insects. This meticulous process underscores the company’s dedication to delivering high-quality seeds.

Infrastructure and Facilities

To support its expanding operations, Vishwas Agri Seeds availed a term loan of Rs. 11.51 Crores from HDFC Bank for constructing the factory shed, cold storage, warehouse, and for acquiring seed processing machinery. The facility boasts warehousing capabilities to store 4200 MT of stock and a cold storage capacity for 3000 MT, ensuring the longevity and quality of the seeds. Plans are also in motion to establish a corporate office and an in-house seed testing laboratory within the premises, further enhancing the company’s product quality and innovation.

Quality and Diversity

Vishwas Agri Seeds’ portfolio is as diverse as it is extensive, with seeds for over 40 different field crops and vegetables. The company prides itself on offering more than 75 varieties of crops, including groundnut, soybean, wheat, cumin, and research hybrid seeds for cotton, castor, and maize, among others. This diversity reflects the company’s aim to meet the varied requirements of the Indian agriculture sector, ensuring farmers have access to the best seeds for their fields.

Distribution Network and Reach

As of March 31, 2023, Vishwas Agri Seeds has established a robust sales and distribution network, making its presence felt in Gujarat, Maharashtra, and Rajasthan. This extensive network ensures that high-quality seeds are accessible to farmers across these states, supporting their efforts to achieve better crop yields and contributing to the overall growth of the agriculture sector in India.

Conclusion

Vishwas Agri Seeds Ltd embodies the spirit of innovation, quality, and commitment to the agriculture sector. With its state-of-the-art processing unit, expansive product range, and a strong distribution network, the company is poised to continue its journey of growth, contributing significantly to India’s agricultural prosperity.

Objects of the Vishwas Agri Seeds Limited IPO:

The Objects of the Net Issue is to raise funds for: A. Capital Expenditure to i. To Furnish the Corporate Office building ii. To purchase Equipments for setting up Seed Testing laboratory iii. To set-up Greenhouse (Fan-Pad System) iv. To install Roof Top Solar Monocrystalline Panels (129.6KW) B. Additional Working Capital Requirement C. General Corporate Purpose

Vishwas Agri Seeds Limited IPO Details:

Open Date: Mar 21 2024
Close Date: Mar 26 2024
Total Shares: 3,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 25.80 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 86 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 29 2024

Promoters And Management:

Mr. Ashokbhai Sibabhai Gajera is 45 years old and he has completed his B.S.C in chemistry. After completing his studies, he started seeds processing business in Rajkot, Gujarat. Mr. Ashokbhai started a partnership firmM/s. VISHWAS AGRI SEEDS in 2008. He has 18 years of experience in seeds processing industry and is key person behind the business of the company. Under his leadership Vishwas Agri Seeds Limited has set up its seed processing unit in Bhayla, Ahmedabad, Bavla, Gujarat in 2023. He looks after overall business and marketing. Mr. Dineshbhai Madhabhai Suvagiya is 48 years old and he has completed his B.A. He is having 12 Years of experience in the seeds processing industry. He is Chief Financial Officer (CFO) of Vishwas Agri Seeds Limited. He looks after finance department of the company. Mr. Bharatbhai Sibabhai Gajera is 40 years old, he is having 12 Years of experience in agriculture sector and seeds processing industry. He looks after admin and Human Resource department of the Company. He is also handling Marketing and distribution activities of the Company.

Financials of Vishwas Agri Seeds Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 5,382 6,486 6,531 4,246
Other Income 0.3 0.2 1 1
Total Revenue 5,383 6,486 6,532 4,247
Cost of materials consumed 4,650 4,824 4,875 3,311
Changes in inventory -386 251 -114 -233
Employees Benefit Expenses 308 180 313 148
Other Expenses 575 783 658 311
EBITDA 234 447 801 710
Depreciation & Amortisation 9 12 10 15
Finance cost 64 104 77 90
EBIT 225 435 791 695
OPM (%) 4.35% 6.90% 12.26% 16.71%
PBT 161 331 714 605
Tax 45 83 180 153
PAT 116 248 534 451
NPM (%) 2.16% 3.82% 8.18% 10.62%
No.of Shares 100.00 100.00 100.00 100.00
EPS 1.16 2.47 5.34 4.51

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Vishwas Agri Seeds Limited 65 5 5.34 16.1 86 86
Bombay Super Hybrid Seeds Limited 228 17 1.60 100.0 201 2,109
Kaveri Seed Company Limited 1,068 273 48.59 12.9 655 3,661
Upsurge Seeds of Agriculture Limited 83 5 6.74 28.1 291 205
* All the data is as per FY23.

Recommendation on Vishwas Agri Seeds Limited IPO:

Review and Recommendation of Vishwas Agri Seeds by team IZ is 4/10. 1. Vishwas Agri Seeds Ltd, founded in 2009 in Gondal, Gujarat, began as a modest seed processing operation but has since grown into a prominent name in the seed industry, celebrated for delivering high-quality seeds to farmers via a broad distribution network. 2. The company utilizes advanced optical sorting machines to meticulously select seeds, ensuring only the best in terms of size, color, and shape reach the market. Further emphasizing quality, Vishwas Agri Seeds adopts comprehensive seed treatment practices, applying fungicides and insecticides to protect against pathogens and pests. 3. Vishwas Agri Seeds Ltd stands as a beacon of innovation, quality, and growth in the agricultural sector. With its strategic expansion, advanced technological infrastructure, and steadfast commitment to quality, the company is poised for continued success and contribution to India's agricultural landscape. 4. Product Portfolio and Market Presence As of March 31, 2023, Vishwas Agri Seeds Ltd has distinguished itself by producing seeds for over 40 different field crops and vegetables. With a presence in Gujarat, Maharashtra, and Rajasthan, the company's sales and distribution network is a formidable force in the agricultural sector. The product portfolio boasts more than 75 crop varieties, including seeds for staple crops, research hybrid seeds, and hybrid vegetable seeds, catering to the diverse needs of the agricultural community. 5. Business Strategies 1) Modern Automated seed processing unit at Bhayla, Ahmedabad, Gujarat 2) Distribution network spread across western part of India 3) Vishwas work as vocal for local approach to solove the problems faced by the local farmers 6. The Revenue has Increased from Rs.53 Crore in FY21 to Rs.65 Crore in FY23. 7. The EBITDA has Increased from 2 Crore in FY21 to 8 Crore in FY23. 8. The PAT has Increased from 1 Crore in FY21 to 5 Crore in FY23. 9. As per FY23, CFO/EBITDA is 1.01, As per FY24, EPS is 9.02, 10. Market Capitalization is 86 Crore & P/E is 9.53x based on FY24.

Lead Manager of Vishwas Agri Seeds Limited IPO:

  1. ISK Advisors Private Limited

Registrar of Vishwas Agri Seeds Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Vishwas Agri Seeds Limited Near Toll Tax, S. No. 460, Gangad Road, Bhayla Ahmedabad, Bavla, Gujarat, India. - 382220 Phone: +91 6535709174 Email: cs@vishwasagriseeds.com Website: http://www.vishwasagriseeds.com/

Discussion on Vishwas Agri Seeds Limited IPO:

Leave a Reply