Nirman Agri Genetics IPO subscription is opening up in March 2023. According to the prospectus, the IPO consists of a fresh issue of 2,050,800 shares of ₹10 aggregating up to ₹20.30 Cr. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. The stock will be listed on NSE SME.
Nirman Agri Genetics IPO – The Company Business Description
Nirman Agri Genetics is an Agri-Input Company in India. The company is engaged in the business of production, processing, and marketing of high-quality hybrid seeds, Pesticides, and Bio-organic for different crops like corn, sunflower, cotton, paddy, grain sorghum, etc.
- Nirman Agri genetics recently expanded its operation into micronutrients and bioproducts.
- The company is also producing non-hybrid seeds, primarily for paddy.
- Nirman Agri Genetic Limited has three processing and R&D facilities in India – Maharashtra Gujarat, and Madhya Pradesh.
- The products are marketed under the brand name of ‘Nirman Agri Genetics’
- Sales of the company mainly focused on four states – Maharashtra, Gujarat, Madhya Pradesh, and Karnataka.
- The seeds segment is the major revenue contributor in FY2022.
Nirman Agri Genetics Limited Founders and Leadership team
Mr. Pranav Kailas Bagal is the Promoter and Managing Director of the company. He holds a Diploma in Agriculture from National Backward Krushi Vidhyapeeth, Solapur, Maharashtra. He has around six years of experience in the field of Marketing Agriculture inputs. Before this business, he has done Agri-inputs business in Proprietary concern M/s. Nirman Agri Genetics from 2018. He holds 99.96% of the total shares of Nirman Agri Genetics Limited before the IPO issue.
Nirman Agri Genetics Limited Revenue and Profit
Nirman Agri Genetics has recorded strong revenue in FY2022 that reached Rs. 1,348.91 lakhs from Rs. 382.21 lakhs in FY 2021. For the period ended October 30, 2022, the company has generated revenue of Rs. 1,804.28 lacks. Further historical data is not available for analysis.
For the Period ended October 2022, the company registered a net profit of Rs. 230.44 lakhs as against Rs. 5.47 lakhs in FY 2021. However, the total borrowing of the company has increased from Rs. 99.19 lakhs in FY 2021 to Rs. 171.41 lakhs by October 30, 2022. The total borrowing of the company is over 50% of the net profit of the company during the same time.
Nirman Agri Genetics IPO Review : Financial Snapshot
| All amounts in INR Lakhs (Year ended November 30) | FY 2021 | FY 2022 | October 30 , 2022 |
| Revenue Operation | 382.21 | 1,348.91 | 1,804.28 |
| Total Income | 382.21 | 1,348.91 | 1,804.28 |
| Net Profit After Adjustment | 5.47 | 256.02 | 230.44 |
| Earnings Per equity Share-Diluted | 0.21 | 10.00 | 9.00 |
| Net Cash from Operating Activities | (26.73) | (4.60) | (50.22) |
| Long Term Borrowings | 99.19 | 204.06 | 181.17 |
| Net Worth | 6.47 | 264.41 | 447.51 |
| Net Asset Value/Book Value per Equity share | 0.25 | 10.33 | 17.48 |
Objective Behind the Nirman Agri Genetics IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 1,182.19 lakhs to meet the working capital requirements of the company.
- The company has fixed Rs. 200.00 lakhs to invest in Strategic Acquisition or Joint Venture
- The rest of the net proceeds will be utilized for to Purchase of a Computer and other hardware and General Corporate Purposes.
Nirman Agri Genetics IPO: Do you invest?
- Nirman Agri Genetics Limited registered a strong total revenue in FY2022. However, the revenue growth seems increased suddenly. There is no historical data available for comparison.
- The net cash flow generated from operating activities has been negative for the period from FY 2021 till October 30, 2022.
- Total borrowing is quite high in terms of the net profit of the company.
- There is strong competition in this business as there is a medium to the low entry barrier.
- The promoter’s background seems not very impressive in terms of related education and experience as per the DRHP document analysis.
- Though the government of India is focusing on the Agriculture industry, the company has a presence only in four states.
- Hence, looking at the financials and factors mentioned above, I would prefer to avoid this SME IPO as a retail investor.
Nirman Agri Genetics IPO Details
| Nirman Agri Genetics IPO Details | Nirman Agri Genetics IPO Date, Price and other details |
| Nirman Agri Genetics IPO Date | Mar 15, 2023 to Mar 20, 2023 |
| IPO Price | ₹99 per share |
| IPO Allotment date | Mar 23, 2023 |
| Refunds Initiation date | Mar 24, 2023 |
| Credit of Shares to Demat Account | Mar 27, 2023 |
| IPO Listing Date | Mar 28, 2023 |
| Offer for Sale | Nil |
| IPO Issue Size (Fresh Issue) | 2,050,800 shares of ₹10 (aggregating up to ₹20.30 Cr) |
| Minimum bid (lot size) For retail investor | 1 lot of 1200 shares Investment of ₹118,800 |
| Maximum bid (lot size) For retail investor | 1 lot of 1200 shares Investment of ₹118,800 |
| Retail Shares Offered | Not less than 50% of the Net Offer |
| Minimum bid (lot size) HNI investor | 2 lot of 1200 shares (2400) Investment of ₹237,600 |
| NII (HNI) Shares Offered | Not less than 50% of the Net Offer |
| Face Value | INR 10 per share |
| Listing on | NSE SME |
| Promoters | Mr. Pranav Kailas Bagal is the Promoter |
Nirman Agri Genetics IPO: Lead Managers and Contact
| Contact Details | Nirman Agri Genetics IPO Lead Managers |
| Nirman Agri Genetics Limited Vedant Apartment, Near Reliance Shopee, Dindori Road, Panchavati, Nashik – 422 003 Phone: +91 253 2943101 Email: cs@nirmanagrigen.com Website: http://www.nirmanagrigen.com/ | FIRST OVERSEAS CAPITAL LIMITED 1-2 Bhupen Chambers, Dalal Street, Fountain, Mumbai – 400 001, Maharashtra, India. |
Nirman Agri Genetics IPO Allotment Status
Nirman Agri Genetics IPO Allotment status will be available on BIGSHARE SERVICES PRIVATE LIMITED. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Phone: +91-22-6263 8200, Email: ipo@bigshareonline.com
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