Nirman Agri Genetics is entering into the capital market via SME Platform by issuing 20,50,800 shares shares of Rs 10. It is a Fixed Price IPO at a price of Rs. 99 per share. The Company IPO opens on March 15, 2023 and closes on March 20, 2023 with a lot size of 1200 shares. The stock will be listed on NSE SME Platform.
- Issue Opens on: Wednesday, March 15, 2023
- Issue Closes on: Monday, March 20, 2023
- Issue Price: ₹99
- Face Value: ₹ 10 per equity share
- Lot Size: 1200 Shares
- Issue Size: 20,50,800 shares of Rs 10 (aggregating up to ₹20.30 Cr)
Fresh Issue: 20,50,800 shares of Rs 10 (aggregating up to ₹20.30 Cr)
Issue Type: Fixed Price Issue IPO - Retail (Min): ₹ 1,18,800
- Listing on: NSE SME Platform
Timeline
- Basis of Allotment: March 23, 2023
- Initiation of Refunds: March 24, 2023
- Credit of Shares: March 27, 2023
- Listing of Shares: March 28, 2023
Key Financials for the Last Three Completed Financial Years
| Details | FY23 | FY22 | FY21 |
| Total Revenues | Rs 30.93 crore | Rs 13.49 crore | Rs 3.82 crore |
| Revenue growth | 129.28% | 253.14% | – |
| Profit after tax (PAT) | Rs 3.95 crore | Rs 2.56 crore | Rs 0.06 crore |
| PAT margins (%) | 12.77% | 18.98% | 1.57% |
| Net Worth | Rs 4.48 crore | Rs 2.64 crore | Rs 0.07 crore |
| Return on Net Worth (%) | 88.17% | 96.97% | 85.71% |
| Asset Turnover Ratio (X) | 1.97X | 2.26X | 2.33X |
The IPO is coming at a very attractive valuation with the lowest P/E in the industry. Nirman Agri Genetics has a P/E ratio of 12.58 whereas the industry’s lowest P/E ratio is 38. The company has shown a remarkable growth in both Revenue and profit after tax. The net worth of the company and the assets of the company have doubled in the one year. The company has been successful in generating a good cash flow from its core business operations since day one.
The company plans to invest approximately ₹2 crores in either an acquisition or a joint venture with a company in the agri inputs industry. The aim is to expand their customer base, reach new markets, and achieve inorganic growth. The management intends to use around 10% of the gross proceeds for this purpose and is looking for companies with similar business lines that can help them expand through backward or vertical integration. They are seeking to identify companies that can add value to their products, increase their brand value, and ultimately improve their profitability.
The Company
The company was founded in 2020 as a specialised agri-input provider with a focus on hybrid seeds and agricultural yield boosting systems. Nirman Agri Genetics Ltd. produces, processes, and sells high-quality hybrid seeds, insecticides, and bio-organic goods. The company’s goods are utilised in a variety of cash crops, such as corn, sunflower, cotton, paddy, grain sorghum, etc.
The company has its own production, processing, and R&D facilities in Maharashtra, specifically in Nashik and Nimgul. Their research focuses on developing better hybrid seeds for various crops, such as corn, cotton, sunflower, paddy, and bajra. These seeds are sold under the brand name ‘Nirman Agri Genetics,’ and the company expects its R&D facilities to drive future growth. The Company is promoted by Mr. Pranav Bagal.
The Strength
- The company has a great ability to generate cash from its core business
- More or less it belongs to a recession proof industry, which makes this IPO one of its kind.
- The revenue growth is excellent considering the company is 3 years old. PAT and RONW margins are attractive and they will mature overtime.
- Asset turnover does indicate adequate use of assets for the growth of the company in the long run.
- The IPO is coming at a P/E of 12.58 which makes it look more attractive and fair valued.
This is a high growth sector where there is a lot of potential, especially with the government putting a major thrust on the agricultural sector thus the IPO is certainly suitable for Long Term Gains
